Start saving early
HOW much do I need to save for my children’s higher education? Will I be financially ready when they turn 18 and are ready to enrol in university?
These are among the questions asked by most parents. There are many options for them to come up with the funds for their child’s education.
Getting a personal loan will help, and the Employees’ Provident Fund allows withdrawals for professional and skill-based courses approved by it.
Another option is to apply for a loan from the National Higher Education Fund. Online applications can be done via its website.
Its marketing and strategic communications department senior general manager Abdul Ghaffar Yusop said that since 1997, the government has assisted eligible students to access higher levels of education.
Demand for National Higher Education Fund loans is expected to continue to rise especially with the increase in higher education enrolment figures. Moreover, with the projected higher increase in the number of local students attending private higher education institutions which charge higher fees compared to public tertiary institutions, the yearly loan burden of the National Higher Education Fund, currently at RM4 billion a year, will increase significantly.
”Student loans have become an important part of the global higher education landscape, in tandem with an increased demand for tertiary education. Student loans increase access to higher education for students from poorer backgrounds,” said Abdul Ghaffar.
He urges parents to start saving for their children’s education as early as one year old under the National Education Savings Scheme (SSPN-i) and SSPN-i Plus.
“We encourage parents to open an account for their children with us as soon as they are born to ease the burden of funding their tertiary studies.”
Since its launch in 2004, 2.7 million SSPN-i and SSPN-i Plus accounts have been opened as of December 2016.
The latter, a value-added version of SSPN-i, is an affordable savings scheme with comprehensive protection.
“With SSPN-i Plus, parents invest not only in education but also receive competitive dividends,” he added.
Abdul Ghaffar Yusop