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.<\/p>\n
The fund said it arrived at the decisions after taking members\u2019 feedback into consideration.<\/p>\n
The change replaces the current conditions for Education Withdrawals from Account II for three categories of higher learning: Bachelor\u2019s degree or its equivalent or higher for members\u2019 children from April 1, 2000; diploma or equivalent or higher for members\u2019 children from January 2, 2001; and diploma for members\u2019 children from January 17, 2006.<\/p>\n
Roughly 70,000 members have yet to repay their education loans. What\u2019s more, the scheme allows EPF members to make withdrawals from Account 2 to pay tuition fees for their children.<\/p>\n
How this revised facility will affect members\u2019 retirement plans is yet to be seen as it comes on the backdrop of rising living costs.<\/p>\n
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.<\/p>\n