DPM: Set up education fund for children early

KUALA LUMPUR: Parents should start an education fund for their children early to minimise what they have to pay in study loans later, says Tan Sri Muhyiddin Yassin.

The Deputy Prime Minister said parents should set up a special account or fund for their children as soon as they are born.

With education being crucial in determining a person’s future, it would be a missed opportunity if one could not pursue further education due to financial constraints, he said.

“Good financial planning and management is important so that we can help our children achieve success in education and fulfil their dreams,” he said at the launch of the SSPN-i Plus savings scheme here yesterday.

SSPN or National Education Savings Scheme is managed by the National Higher Education Fund Corporation (PTPTN). It has 2.2 million accounts with deposits totalling RM1.7bil so far.

Muhyiddin, who is Education Minister, said the Government was determined to ensure that financial limitations do not hamper students from pursuing higher education.

He said the setting-up of PTPTN in 1997 was meant to support this objective.

He added that the corporation was a success as about 200,000 students managed to continue their studies annually at both public and private institutions through PTPTN financing.

As of April 30, 2.29 million borrowers had secured study loans via PTPTN which came to RM52bil.