Employees Provident Fund (EPF) contributors will be able to settle outstanding study loans from July 21 with their Account II under the Education Withdrawal Facility, regardless of the effective date of their education loan agreements.
EPF deputy CEO (operations) Datuk Mohd Naim Daruwish said they arrived at the decision after taking members’ feedback into consideration.
The change replaces the current conditions for Education Withdrawals from Account II for three categories of higher learning: Bachelor’s degree or its equivalent or higher for members’ children from April 1, 2000; diploma or equivalent or higher for members’ children from Jan 2, 2001; and diploma for members’ children from Jan 17, 2006.
“The EPF serves to create a positive member experience and we always strive to improve all areas that we can while delivering our mandate,” he said in a statement yesterday.
“It (the new move) is expected to benefit up to 70,000 members who have yet to repay their education loans.”
The withdrawal scheme allows EPF members to make withdrawals from Account II to pay tuition fees for their children or for themselves to pursue further studies at any local or overseas higher educational institution.
On his Facebook page, Prime Minister Datuk Seri Najib Tun Razak noted that the public should make full use of the option as it has been made easier to settle their education debts, and hoped that the facility would be well utilised.
It was reported on April 1 last year that the option of repaying education loans from Account II would be conducted via online withdrawals.
Prior to the option of online withdrawals, borrowers had to take out their savings by filling up forms at EPF offices.
On another matter, EPF said that with immediate effect, members could submit their withdrawal application form 9B (AHL) for age 50 withdrawals, age 55 and age 60 full or partial withdrawals only a month prior to their date of birth instead of the six months previously.
“Before members make any withdrawals, we encourage them to visit our retirement advisory services located in 18 branches throughout Malaysia to receive free advice on the best withdrawal option that fits their needs,” said Mohd Naim.
Further information on the changes in withdrawal policies may be obtained from the EPF Contact Management Centre at 03-8922 6000; or visiting www.kwsp.gov.my or any EPF branch nationwide.