Effective July 21, more than 70,000 Employees Provident Fund (EPF) contributors can use their savings from Account 2 to settle the balance of their education loans, irrespective of their loan agreement dates.

EPF deputy chief executive officer (Operations) Datuk Mohd Naim Daruwish said the enhancement to the Education Withdrawal Scheme would replace the current conditions for withdrawals.

"The enhancement to the policy was made after taking into account the feedback of members who faced difficulties in reducing or settling their education loans using their EPF savings," he said in a statement here today.

Prior to this, the current condition to settle the outstanding loan balance for children's study at degree level, its equivalent and above is limited to loan agreements that came into effect on April 1, 2000, and to complete the financing of members pursuing their own study, at the diploma level or equivalent and higher was limited to the loan agreements which came into force from Jan 2, 2001.

In the meantime, the conditions for settling the education loans of members' and their children at the diploma level or its equivalent and above were limited to loans that came into effect from Jan 17, 2006.

In addition, with immediate effect, EPF members may also submit withdrawal application form 9B (AHL) for Age 50 Withdrawals or Age 55 and Age 60 Full/Partial Withdrawals one month before their birth date, as compared to six months previously.

"Before making any withdrawals, we encourage members to visit our retirement advisory services provided at 18 branches throughout Malaysia to receive free advice on the best withdrawal options that fit their needs," he said.

Those who wish to get more information about the changes in the withdrawal policies can contact the EPF Contact Management Centre at 03-89226000 or visit the EPF website at www.kwsp.gov.my or visit any EPF branches nationwide.

-- BERNAMA