In recent news, Malaysia was ranked as the fifth most expensive country in the world when it comes to paying for a higher education. In the survey done by the London-based Expert Market, Malaysians are spending up to 55% of their salary to get their child through university.

So in the current economy where we can see a rise in the cost of living, which includes everything from food, accommodation and academic fees, what are the options for parents to help them finance their children’s education? Check out these 4 ways for parents to finance a college education below!

Plan Ahead

The parents should ideally plan ahead for their children’s higher education and not leave it to when the kids are in their final years of schooling. The average college course lasts between 3 to 4 years, so you’ll need to save up for cost of fees of 4 years (and that’s not including the additional costs that involve studying abroad).

While it can sound daunting to have to save up a lump sum of 3 or 4 years’ worth of fees, but if you get started on it early, you will get to spread it across a few years. Start when your kids are still young and since this will be a long term savings plan, do look into the best savings accounts in Malaysia. Compare and find out the best option you have so you can maximize and get the best value for your money while you are saving up.

Get the Best Rate

A personal loan can be another option for parent’s to finance their child’s education. Although it may not be able to finance entirely for your child’s education, it will be a very helpful helping hand. Before taking out a personal loan for this purpose, make sure you do your homework. Compare personal loans and find the one that offers the best interest rates, bank services and repayment options that work in your favour.

Withdraw From Your Funds

The Employees Provident Fund (EPF) allows withdrawals to finance for educations. But parents must take note that EPF has a list of authorised education institutes, both locally and abroad where your child must be accepted at before an education withdrawal will be approved. For more information and guidelines, read up on the EPF education withdrawal here.

Education Funding

Aside from personal loans and the EPF education withdrawal, parents should also look into the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN). It’s an education scheme established for the purpose of providing education financing to students. This scheme will offer either full or partial financing for the course fees and cost of living throughout the duration of your child’s study.

Application can be done online at the online application for PTPTN. Do take note of the closing date for applications so you don’t miss out. Closing dates can be found here, and make sure your child has a Skim Simpanan Pendidikan Nasional (SSPN-i) account with a minimum deposit as determined by PTPTN. This it is a requirement before proceeding with a PTPTN education financing application.

For more money saving tips, check out the CompareHero.my blog!