EPF Members Can Use Account 2 To Settle Study Loans
The Employees Provident Fund (EPF) has decided to allow its contributors to settle outstanding study loans from July 21 with their Account 2 under the Education Withdrawal Facility.
The fund said it arrived at the decisions 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 January 2, 2001; and diploma for members’ children from January 17, 2006.
Roughly 70,000 members have yet to repay their education loans. What’s more, the scheme allows EPF members to make withdrawals from Account 2 to pay tuition fees for their children.
How this revised facility will affect members’ retirement plans is yet to be seen as it comes on the backdrop of rising living costs.
EPF revealed early this year that only 40% of its members have enough to retire and that 70% of Malaysians are struggling to save RM1,000 in emergency funds.