Clear Your Stu­dent Debts

Fresh out of univer­sity, most of you are likely strad­dled with debts in­curred from school fees. Here’s what you should know about pay­ing off your study loans.

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Do it as fast as you can

Depend­ing on the amount bor­rowed, most fi­nanc­ing schemes al­low you to make a monthly min­i­mum re­pay­ment of RM100 over a pe­riod of years to pay off your loan. While it may be tempt­ing to pay just the bare min­i­mum ev­ery month, Serene Loh, Ex­ec­u­tive Fi­nan­cial Plan­ner for AXA Life In­sur­ance Sin­ga­pore, ad­vises against it. “In other words, if you’re not spend­ing it or you’re sim­ply putting it in the bank, which earns very lit­tle in­ter­est, you shouldn’t leave this debt dan­gling over the next few years.”

In­vest wisely to clear your debts faster

For people who are new to the world of fi­nan­cial in­vest­ment, unit trusts are a good start. “Unit trusts are a bit like stocks, but you need to in­vest in a whole bas­ket of dif­fer­ent shares,” says Loh. By do­ing so, risk is min­imised as it’s spread out. “Plus, you’ll have a pro­fes­sional fund house to help you man­age your stock port­fo­lio and do the risk pro­fil­ing.” The min­i­mum monthly amount starts from as low as RM100 to RM150

412,245 bor­row­ers have not started pay­ing their PTPTN loans as of 31 Au­gust 2013.


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