Undergraduate Focus: The bank loan option

Besides loans offered by the government and private corporations, students can seek out bank loans to further their studies. Most local banks provide them in the form of personal loans that require individuals to repay them upon graduation.

The repayment duration is about 15 to 20 years depending on the bank’s terms and conditions. Examples of banks offering personal loans for education are CIMB Bank, Maybank and RHB Bank.

Other banks offer specific loans for education rather than the general personal loans. Below are two specific education loans.

Bank Rakyat Education Financing-i Falah: Bank Rakyat offers a loan programme to finance individuals who wish to further their studies locally or overseas. This loan will cover the full cost of tuition fees, cost of living and also the purchase of study materials such as text books. 

The eligibility for the loan scheme is flexible; it is open to all Malaysians aged 18 and above and not exceeding 65 years at the end of the financing period. Besides that, applicants must have a fixed income and as for students who do not possess any income, they can apply through their parents, spouses, siblings or legal guardians.

The maximum amount an applicant can loan is RM200,000 with a guarantor. However, unlimited financing can be provided in certain cases that are subject to collateral value such as landed property and Bank Rakyat’s Investment Certificates. The maximum duration to repay the loan is 15 years.

For more information visit: www.bankrakyat.com.my

OCBC Bank Tuition Fee Loan: Students enrolled in NUS (National University of Singapore), NTU (Nanyang Technological University) or NIE (National Institute of Education) can apply for OCBC Bank’s Tuition Fee Loan provided by Singapore’s Ministry of Education. This loan offers up to a 90 per cent subsidy of tuition fees and an interest-free loan where interest only starts upon graduation. Repayment of the loan starts upon graduation or not later than two years after. The repayment period can be stretched up to a maximum of 20 years. 

There are no age restrictions for this loan scheme and only full-time or part-time undergraduates from NUS, NTU and NIE are eligible to apply. However, selected postgraduate courses at NTU are allowed to apply. The application period is available at the start of the semester.

For more information visit:www.ocbc.com

Finding the right fit

When applying for a scholarship, there are several things to note. First, students must ensure the legitimacy of the scholarship opportunities. There are hundreds of scholarships offered by governments, corporations and non-profit charitable trust funds. Unfortunately there are also scams trying to take advantage of students who are looking for financial assistance.

Students should:

•   Beware of scholarship offers that request an advanced applicati
       on fee or payment to become a short listed candidate.

•   Not trust scholarship providers that guarantee scholarship
       awards to all applicants.

•   Be careful of solicitations from people claiming to represent the
       government or scholarship organisations.

•   Do some background research on the organisation, especially if
       it is not a well-established scholarship provider.

•   Once the validity of the scholarship provider is confirmed, be
       aware of the conditions set by the scholarship giver before
       submitting the application.

Time: A scholarship application is usually time-sensitive, so applicants must always be on the lookout for the opening of a scholarship offer and its closing date.

The entire selection process may take a while, and the disbursement of the scholarship grant may take even more time. Consider these factors and plan ahead as the whole process can be time consuming. Having some financial resources in the meantime may be a good idea.

Scholarship Coverage: Most scholarships require that the student not hold another existing scholarship, although some might allow it. Not all scholarships are full scholarships that cover the school fees and provide monthly stipends. Partial scholarships may cover only school-related expenses, while students will still need to cover their own living expenses.

Requirements: Most scholarship offers have a minimum academic requirement. As scholarships are competitive, many applications may include an interview, essay submission or audition as part of the selection process.

Besides academic considerations, scholarship providers normally favour students who show leadership values or have a community service record. Bond requirements may also be part of the scholarship agreement, typically requiring the student to work with the scholarship provider upon graduation for a stipulated amount of time or in remote locations.

There are plenty of scholarship opportunities available, each offering something different.  To be a truly successful applicant, the student must weigh his options carefully before applying for a scholarship that is just the right fit.