KUALA LUMPUR: Employees Provident Fund (EPF) members can now settle their outstanding education loans via their Account 2 under the Education Withdrawal facility.
The EPF said the payment method enhancement is effective July 21, 2017 and irrespective of the effective date of members' education loan agreement.
The enhancement will replace the current conditions of Education Withdrawals from Account 2.
Levels of studies eligible for the new conditions include Bachelor’s Degree or equivalent higher studies, and diploma or equivalent.
Irrespective of loan agreement dates (subject to withdrawal eligibility), the payment method is available for EPF members and members’ children.
EPF Deputy Chief Executive Officer (Operations) Datuk Mohd Naim Daruwish said the enhancement to the policy was done after taking into consideration feedback from members who faced difficulty in reducing or settling their education loans using their EPF savings.
“We are pleased to note that the enhancement is expected to benefit up to 70,000 of our members who have yet to repay their education loans,” he said.
In addition to the enhancement, EPF also announced that effective immediately, members can submit their withdrawal application Form 9B (AHL) for Age 50 Withdrawals or Age 55 and Age 60 full or partial withdrawals one (1) month prior to their birth date instead of the previous six (6) months.
"Before members make any withdrawals, we strongly 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," added Mohd Naim.
For further information and inquiries on the changes in the withdrawal policies, contact the EPF’s Management Center at 03 89226000, or log on to www.kwsp.gov.my or visit any EPF branches nationwide.