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.
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.
ACCORDING TO EDUCATION MINISTER TAN SRI MUHYIDDIN YASSIN.