EPF Acct 2 Withdrawal for Education
Education is one of the best investments one can make in their lifetime but for many Malaysian families, paying for extra years of learning is something very hard to do. Thankfully there is room that EPF allows members to withdraw their savings in to finance education related expenses. Whether you intend to pay school fees locally or internationally, or you are a parent seeking to fund your child’s tuition fee, then the EPF Education Withdrawal Scheme offers an easy way of doing so.
In this guide, you will learn how you can make an EPF withdrawal for study in Malaysia and vital information regarding how to make the process seamless.
Why Use EPF for Education?
EPF savings are mainly focused on retirement however through the EPF Education Withdrawal Scheme members can use their savings to fund education. Here’s why EPF withdrawal for study is a great option:
No Need for Loans: Hence, by withdrawing the amount in their EPF savings account one can little down on student`s debts which attract interest charges and booking of hefty amount as per the repaying schedule.
Flexible Coverage: The scheme offers tuition fees and other expenditures of various courses, including diplomas to post graduate degrees.
Local and International Programs: Thus it allows for withdrawal of funds for both local and international accredited institutions.
Withdrawal Under EPF for Education: Who is Eligible?
Before applying for EPF withdrawal, ensure that you meet the following eligibility criteria:
EPF Member: You must be a member of the Employees Provident Fund (EPF) with available savings in Account 2.
Approved Courses and Institutions: The withdrawal applies to programs and institutions recognized by the Malaysian Qualifications Agency (MQA) or accredited international institutions.
Courses for Yourself or Your Children: You can use the funds for your own studies or for your children’s education.
Full-Time or Part-Time Programs: The withdrawal is available for both full-time and part-time study, offering flexibility for working adults.
What Can EPF Withdrawal Cover?
The EPF Education Withdrawal Scheme primarily covers tuition fees, but it can also be used for the following expenses:
- Registration fees
- Exam fees
- Other education-related costs
It is important to note that the withdrawal amount will be based on the actual tuition fees or the available balance in your EPF Account 2, whichever is lower.
Step-by-Step Guide to Applying for EPF Withdrawal for Study
1. Check Your EPF Balance in Account 2
First, you need to verify the amount available in Account 2 of your EPF savings. You can check your balance through the i-Akaun portal or by visiting an EPF branch.
2. Prepare the Required Documents
You will need to gather the necessary documents for the withdrawal application. Here’s a list of documents typically required:
- MyKad (IC) or passport (for international students)
- Offer letter from the educational institution stating the course and fees
- Course fee schedule provided by the institution
- Official receipt or invoice if fees have already been paid
- Bank account details for fund disbursement
- If you are applying for your child, additional documents such as birth certificates or adoption papers will be required.
3. Submit the EPF Withdrawal Application
You can submit your EPF withdrawal application in two ways:
Online via i-Akaun: This is the most convenient method. Log in to your i-Akaun and complete the withdrawal process online.
In-Person at EPF Branches: Alternatively, you can visit any EPF branch with the required documents to submit your application.
4. Wait for Approval and Disbursement
Once your application is submitted, EPF will process the request. Approval typically takes about 10 to 15 working days. Upon approval, the funds will either be disbursed directly to the educational institution or credited to your personal bank account if you’ve already paid the fees.
Important Points to Remember
Partial Withdrawal: You can choose to withdraw part of the fees or the full amount, depending on your available EPF balance in Account 2.
Subsequent Withdrawals: If your course spans multiple semesters or years, you can make subsequent withdrawals for each term as long as there are sufficient funds in your Account 2.
Tax Relief: EPF withdrawals for education purposes are not subject to income tax, providing further financial relief.
Common Mistakes to Avoid
Incomplete Documents: Ensure all required documents are submitted to avoid delays or rejections.
Not Checking Institution Accreditation: Make sure the institution and program are recognized by MQA or the relevant accreditation body.
Late Application: If you’ve already paid for your tuition fees, be sure to apply for the withdrawal within six months of payment.
Conclusion
The EPF Education Withdrawal Scheme is a practical solution for Malaysians looking to fund their education or support their children’s academic aspirations. With a straightforward application process, the scheme provides financial relief while reducing the need for education loans. Whether you’re pursuing higher education locally or abroad, using your EPF savings is a smart way to invest in the future.
For all our beloved students, Interface Education provides you the assistance to prepare the documentation needed to apply for EPF withdrawal. Please contact our authorized representative for more information.
