Types of funding
Financial aid is a welcome boost, especially when the only thing standing in between you and further studies is the spare change (or lack thereof) in your wallet.
The undergraduate degree is now a staple in the average Joe’s job-finding toolbox, making postgraduate studies a necessity for those who want to stand out from the rest in today’s competitive job market.
Whether you’re employed or a fresh graduate, chances are, you will have to find your own funding for postgraduate studies. Suspending your career might be a difficult move, considering the volatile economic situation. Financial aid can therefore ease the burden. Here are some of your options:
Scholarship and sponsorships
Scholarships and sponsorships are financial aids that do not need repayment. Generally the former is offered by organisations; the latter by individuals. In return, scholars may have to serve their benefactor for a stipulated term, usually by serving as staff within the company.
While there is no single comprehensive resource for scholarships, you can refer to newspapers and magazines as well as the Internet where you can find scholarship portals, government education websites, scholarship awarding bodies and institutions, educational institution websites, etc.
Grants
Traditionally offered by the government and non-profit organisations − such as research councils and foundations − to fund individual research projects, grants are now offered by corporations and education institutions as well. Like scholarships, grants do not need to be repaid. Grantees will not be bonded nor required to maintain a certain grade. However, you will usually have to select a course or project that is relevant or beneficial to the grantor and provide regular progress reports.
Education loans
As the name implies, these must be paid back in full with interest once the scholar has completed his or her studies. Education loans can be obtained from a number of sources such as universities, corporations, associations, banks or even from relatives and friends. Interest rates vary. Hence, it’s best to check the terms and conditions carefully before accepting a loan.
The National Government Higher Education Student Loan Scheme (PTPTN) is the main education loan provider for Malaysian students who are pursuing studies locally due to its low interest rates. Loan servicing starts six months upon graduation or when employment commences, whichever comes first. You will not be bonded or required to serve the government after completing your studies. Log on to www.ptptn.gov.my for more information.
Teaching or research assistantships
If you are interested in pursuing a career in academia, a teaching or research assistantship allows you to serve the university while obtaining your qualification. Teaching or research assistantships are full-time, funded student positions offered by universities. Funding and allowances are provided in exchange for part-time service in teaching or research.
Common duties for teaching assistants include supporting university professors in their teaching tasks, ranging from conducting tutorials to grading assignments and examinations. Research assistants help faculty members with research projects. Depending on your area of expertise, you will either be conducting laboratory or field work.
Personal savings
Postgraduate tuition fees are significantly lower than undergraduate level courses. Thus it is possible for working graduates to finance their own studies. In some cases, it might be more practical to use your own savings instead of applying for a personal or study loan, such as when the interest rate for the loan is higher than your fixed deposit.
Those who have accumulated substantial savings in their Employee Provident Fund (EPF) accounts may withdraw money from the Account 2 to fund their postgraduate studies. If you have not been working or contributing consistently to your EPF account, you can get your parents to draw from their EPF savings to help you fund your education.
Employer-funded
Most companies have an allocated fund for employee development and education schemes. You may apply for financial aid in the form of an interest-free loan that will be subsequently deducted from your salary or a sponsorship where you will be required to serve for a stipulated period that corresponds to the loan amount.
Companies that do not have pre-existing allocations are usually open to loan requests and are more likely to approve them if the postgraduate study is relevant and beneficial to both the applicant and the employer. Good performance after you’ve completed your studies would usually result in a promotion or better remuneration.
Tax incentives
To encourage life-long learning, the government is offering up to RM5,000 of tax relief per annum for tax payers who are pursuing postgraduate studies (Master’s degrees and doctorates) in any field at government-recognised institutions or professional bodies. Additionally, you can also enjoy tax relief of up to RM1,000 on book purchases. Although this is not a direct source of funding, it will certainly help lighten the load. Log on to the Inland Revenue Board of Malaysia for more information.
