What most graduates do is service their PTPTN loan diligently, paying off the minimum amount every month either from a deduction off their paycheck or by banking in the instalments directly to PTPTN. What they don’t know is that a portion of the payment goes to servicing the interest and the remaining goes towards reducing the principal.
For example, a monthly payment of RM500 would only reduce the principal amount by RM300 with RM200 used to pay off the monthly interest. A whole year’s payment, RM6,000 will only reduce the principal amount by RM3,600 with RM2,400 gone towards servicing the interest. This of course is just an example but let us just use this for now. The actual amount would of course be determined by how much you borrowed from PTPTN in the first place.
Those with cash to spare would consider settling the whole amount upfront and reap a rebate from PTPTN itself but for those who cannot do so, what CAN you do?







