Tag Archives: Fixed Desposit

Paying Your PTPTN Loan Repayments with Credit Cards – CC 200


Another Credit Card Tutorial by GenX @ http://www.GenXGenYGenZ.com

UPDATE – Use JomPay for credit card payments

UPDATE March 2017 – Post at GenX GenY GenZ Facebook

Update 16 February 2017 – PTPTN payments using credit card via online.


Update April 2016 – Many people have reported that they are unable to pay their PTPTN loan via MyGovXchange.

Update 22 April 2016 – Revision to credit cards to use for paying PTPTN Loans at Conclusion.


If you are a local graduate, most likely you would have signed up with National Higher Education Fund Corporation or in short PTPTN (Perbadanan Tabung Pendidikan  Tinggi Nasional) to finance your tertiary education.

Decades ago, many smart students were deprived of the opportunity to pursue a degree because of financial reasons or limited places in our few local universities. And for those who are lucky to secure a place in a Public University, they may be forced to study in a field where they have no interest at all.

With the establishment of PTPTN, two major things happened:

First – with PTPTN, ALL Generation Ys are given the opportunity to pursue a degree.

Second – with PTPTN, universities and colleges mushroomed everywhere! This is because they are ensured of tuition fee payments by the government! The plus side to this is, one is able to pursue his desired degree in a private college. The downside is, not every university is of equal standard and some do not even have the necessary resources to provide quality education.

So with PTPTN, like the wise TDM said, the government can no longer fool the general public as there are no more idiots in Malaysia.

Seriously, I tell you, PTPTN is a live saver for most families regardless of whether they are from the lower income group or middle class. Nowadays, with the high cost of living plus many chasing after materialistic stuff, many parents do not have adequate savings to finance their children’s tertiary education.

For example, a couple in their mid thirties today are  earning a combined salary of RM100K per annum and are blessed with 3 smart children which give them a big headache as every one of them wants to be a doctor! Assuming they currently have RM200K worth of liquid investments which can be converted to cash anytime. The eldest child will enter university in 10 years time and they can save RM20K a year and deposit it into Fixed Deposit with interest rate of 4%.

In 10 years time, let’s assume their current investment would have ballooned to RM400K and they have saved an additional RM250K (the RM20K per year savings x 10 years with compound interest of 4%). This would mean they would have funds totalling RM650K by the time their first child enters university.

Do you know how much it cost to pursue a MBBS degree at IMU today? It cost more than RM550K!!! So in 10 years time, I would reckon the cost for MBBS at IMU would be more than RM650K!!! So, if they were to send their eldest child to IMU, that would mean they would have very little remaining in their savings to finance the second child’s (who will be entering uni in 13 years time) tertiary education and nothing left for the third child’s education (who will be entering uni in 15 years time).

Like I said, with PTPTN, universities mushroomed overnight everywhere and now we have so many local private universities offering  MBBS where the entire total tuition fees cost less than RM300K. Let’s assume in 10 years time the MBBS tuition fee would be inflated to RM450K.

So the eldest child, in 10 years time, enters one of the many private universities (for some reason, he can’t be enrolled in any of our public universities) to pursue his dream MBBS degree which would cost his parents RM450K.

Assuming PTPTN allows a maximum of RM30K per year for MBBS degree and the MBBS course is 5 years, that would mean that the child can borrow from PTPTN up to RM150K.

So after the first child completes his MBBS degree, the parents would still have RM350K (RM650 Savings/Investment less RM300K tuition fee paid with cash) remaining to finance the second child’s education.

And by the time the second child enters a local private university in 13 years time, say a MBBS degree cost would have inflated to RM500K. So from the RM350 remaining plus RM150K one can borrow from PTPTN, that is just about enough to cover the tuition fees for the second child.

When it is time for the third child to enter uni to pursue his dream MBBS degree in 15 years time, the parents would not have enough money (cash/liquid investment) remaining to finance his/her education even if PTPTN allows them to borrow maximum RM150K for the 5 years course. But our BN government, the best government in the world which has taken care of the Rakyat’s needs for decades without the Rakyat realizing it, have been forcing all salaried Malaysians to contribute to EPF for the Rakyat’s own good. And guess what, thanks to the BN government, the parents (by then would be in their early 50s) would have more than RM300K combined in their EPF Account 2 which they can use to finance their third child’s MBBS program and when they retire at age 60, they would still have more than RM1M combined in their EPF Account.

Note: the above assumes that the couple’s combined income stays at RM100K p.a. But we all know that this is not the case. Most probably the couple’s combined income would surpass RM200K by the time they retire unless one of them stops working for whatever reasons.

You must be wondering what the heck the above example has got to do with your  PTPTN loan? Like I have mentioned many times previously, if you are a reader of mine, it means you are an educated person which means you would most probably die rich (if you don’t gamble, become a drug addict or waste money on materialistic stuff). Click here to read my article titled The Secret To Eternal Happiness.

Well, the purpose of the above is to show you Generations Ys (who utilized PTPTN loans for your higher education and thus giving you the opportunity to earn big bucks (that is if you plan your future well and execute your plan) that with PTPTN coupled with you starting to save money and invest wisely, there is no reason why your Generation Z child cannot pursue his/her dream degree in the future even it if cost hundreds of thousand Ringgit.

With the above introduction, I shall now go into the matter of interest – Paying PTPTN loans with Credit Cards 🙂


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