Using EPF funds to pay for higher education

Using EPF funds to pay for higher education
2010/05/17

QUALITY higher education costs money and many may face difficulties paying for it.
With this in mind, the Employees Provident Fund (EPF) offers the Higher Education Withdrawal scheme to help contributors to finance their education as well as that of their children. The withdrawal is applicable for both local and overseas study programmes.
Q: Who can apply?
A: You are eligible so long as you are below the age of 55 and have a balance in Account 2 of your EPF savings.
Q: How much can I withdraw?
A: You can withdraw the maximum amount of the total education fees or all the balance in Account 2, whichever is lower.
Q: How frequently can I apply for this withdrawal?
A: Provided that there is sufficient balance in your Account 2, you may apply for this withdrawal once every semester or academic year to finance the education fees.
Q: Can I use this withdrawal to help finance my children's education?
A: Yes, you can. This includes stepchildren and legally adopted children.
Q: What courses are covered by this withdrawal?
A: The withdrawal is for the purpose of financing diploma-level education upwards for contributors and their children. All study programmes must be conducted in approved institutions of higher learning. The full list of approved learning courses can be seen in our website, www. kwsp.gov.my.
Q: Can I apply for this withdrawal to reimburse the fees that I have already paid to the institute of higher learning?
A: Yes, provided the payment was made not more than one year from the date of your withdrawal application. You are required to produce the payment receipt for the tuition fees, your bank books or account statements, which are still active, and your passport, if you are a Malaysian residing overseas or an expatriate.
Q: How do I apply for this withdrawal?
A: Contributors must complete the EPF 9H (AHL) Form and provide certified true copies of their identity card together with the letter of offer from the institution of higher learning to you or your child; relevant academic qualification certificates; and other related documents as requested by the EPF from time to time.
For subsequent withdrawals, you must produce the relevant letter of registration from the institution of higher learning, student card and examination slips.
Q: How will the payments be disbursed?
A: There are three modes of payment depending on the case. If you or your child is attending a local or overseas study programme, the EPF will issue a banker's cheque payable to the institution of higher learning. For cases of reimbursement, payment will be directly credited into the contributor's bank account. Thirdly, if the withdrawal is for settling an education loan, payment will be in the form of a banker's cheque payable to the financial institution.
For further enquiries regarding withdrawal for higher education, contact the EPF Call Centre at 03-8922 6000 or log on to www.kwsp.gov.my.