SOCSO / PERKESO Education Benefit Scholarship 2017

Education Benefit is a SOCSO benefit that can come in the form of education benefits or scholarships to dependent beneficiaries based on PERKESO’s Benefits Schedule and meets the following requirement to qualify.

Scholarship sponsored by: Social Security Organisation
Scholarship application deadline: Ongoing
Fund type: Scholarship
Study Local or Abroad: Local

Applicant Requirements To Qualify

  1. Applicant must be a dependent to the following:
    1. Dependent’s Benefit recipient
    2. Survivor’s Pension recipient
    3. Invalidity Pension recipient
    4. Scheduled Permanent Disablement Benefit
  2. Less than 21 years old when applying or If exceeds 21 years, applicant must have received a SOCSO loan before at certificate or diploma level continuously (without suspension due to poor academic performance) and a dependent of the Dependent’s Benefit or Survivor’s Pension recipient;
  3. Not married;
  4. Have received offers to further study at any Institute of Higher Education within the country for first Degree or Diploma, or Malaysian Proficiency Certificate (SKM) Level 1 to 3;
  5. Had applied for education loan from other agencies but it had been declined.
  6. Full programme must be within Malaysia;
  7. Full programme must be based on full time basis;
  8. Time left to completion of programme when applying must not be less than 1 year;
  9. The overall cost of the tuition fee must not exceed RM100,000 not inclusive of sustenance allowance;
  10. For applicants receiving offers from Private Institute of Higher Education, the college or university must have been in operations for at least 2 years and its establishment must have been approved by the Ministry of Higher Education, Malaysia (KPTM);
  11. For applicants applying at Public Institute of Higher Learning at Diploma or Degree level, courses offered must be approved by the Public Institute of Higher Education Management Department, of the Ministry;
  12. For applicants applying at Private Institute of Higher Learning at Diploma or Degree level, courses offered must be approved by the Private Institute of Higher Education Management Department, of the Ministry, and receive Full or Provisional Accreditation Certificate from the Malaysian Qualifications Agency (MQA) and is still within its validity period;
  13. For applicants applying at Malaysian Skills Certificate level 1 to 3, courses offered must result in certification from the Department of Skills Development (DSD), from the Ministry of Human Resource and is still within its validity period;
  14. Meets full requirements and qualifications for entry, as prescribed by KPTM to enter into the programme. If the qualification by the applicant differs, a confirmation letter that the qualification is equivalent to the minimum requirement set by the Ministry must be obtained from the relevant departments or agencies in item 12 and 13; AND
  15. Family financial capability is insufficient to bear the necessary cost for the education.


  • The following does not meet the criteria to apply:
    • Primary or secondary school students
    • Sibling of Insured Person
    • Matriculation / Pre-University / Foundation / Master Degree / PhD students
  • Applicants must take full accountability to ensure all necessary documents from the related departments or agencies is included when submitting complete documentation for their application.
  • Applicants who have received SOCSO loans before but failed to complete the education programme or cancelled their loan before graduating is disqualified from re-applying unless they have fully paid any outstanding amount from their previous loan.
  • Loan disbursement is only given during the education programme period only.

Education Benefit Funding Details

Education funding in the form of a loan that will include service charge. The applicable service charge is based on the following :

  • Borrowers who have accepted the loan offer commencing 1 May 1997 to 31 December 2008 will be charged a service charge rate of 4% per annum on the total outstanding amount. However, from 1 January 2013, the rate has been re-revised to 2%.
  • Borrowers who have accepted the loan offer commencing 1 January 2009 onwards will be charged a service charge rate of 2% per annum on the total outstanding amount.

The loan has been insured, and the insurance costs has already been factored into the total amount.

For education benefits at diploma and degree level education, borrowers may apply to convert their loans into scholarships if the final academic results fulfill the conditions set by SOCSO.

How To Apply Education Loan

Education benefit applications should be made online at the official SOCSO website and by submitting the following documents :

  • A copy of the latest passport sized picture of the applicant
  • A certified original copy of the applicant’s birth certificate
  • A certified original copy of the applicant’s identification card
  • A certified original copy of the applicant’s academic result for PMR, SPM, STPM, Certificate, Foundation/ A-Level / Matriculation / Diploma
  • A certified original copy of the applicant’s high school testimony
  • Original Letter of Offer for placement into an Institute of Higher Education
  • Confirmation letter of registration from the Institute of Higher Education, registration fee receipt or a copy of the student identification card
  • A letter from the Institute of Higher Education following the SOCSO format highlighting the cost and tuition fees for the latest semester.

Education Loan Allocation

  • Loan allocation only covers the education cost which include fee for the first semester, education, examination and lab fee for each semester while other fees are not covered by SOCSO.
  • No allocation of sustenance allowance for student is provided.
Education CostRate
Fees include :
1) Registration fee for the first semester;
2) Education fee;
3) Examination fee; and
4) Lab fee
The entire education cost is not exceeding the maximum rate of RM100,000.00 which approved by Department of Higher Education, Ministry of Education

* Paid to students offered placement at Public Institutions of Higher Education.

Education Benefit Agreement Documents

Applicants who have accepted the offer for the education benefit must secure guarantors and joint sign the education loan agreement documents.

Eligibility to be a guarantor:

  • Malaysian citizenship.
  • Number of guarantor and minimum income level of each guarantor commensurate with the approved loan amount:
    • (Amount less than RM100,000.00)
      • Two (2) guarantors
      • Net monthly income (after deductions) of not less than RM1,500.00
      • Minimum employment period with current employee: 2 years
      • Permanent employment
    • (Amount exceeding RM100,000.00)
      • Three (3) guarantors
      • Net monthly income (after deductions) of not less than RM2,000.00
      • Minimum employment period with current employee: 2 years
      • Permanent employment
  • Minimum age to be a guarantor is subject to the loan amount as set out by the schedule below:
1,000 – 2,50054 years old
2,501 – 5,00053 years old
5,001 – 7,50052 years old
7,501 – 10,00050 years old
10,001 – 12,50050 years old
12,501 – 15,00049 years old
15,001 – 17,50049 years old
17,501 – 20,00048 years old
20,001 – 22,50047 years old
22,501 – 25,00046 years old
25,001 – 27,50046 years old
27,501 – 50,00041 years old
50,001 – 100,00036 years old
More than 100,00031 years old

Each guarantor can only guarantee one (1) loan applicant at any one time.

  • Guarantor can be either parents, siblings, family members or close friends that have known the applicant for more than 5 years.
  • Any guarantors that are self-employed must furnish a copy of the latest 3 years Inland Revenue Board (LHDN) Form B submission that is certified by an officer from the Inland Revenue Board and earn more than RM30,000.00 per year.
  • Guarantors who have signed and agreed to be guarantors may not pull out, unless they are disqualified due to conditions set out within the Education Loan Agreement.
  • Applicant and guarantors must sign their documents, witnessed by any of the following:
    • Member of Parliament / Senator;
    • Any officers that belong to Group A or B from the government or approved agencies or equivalent;
    • SOCSO officers who are Grade 19 and above;
    • Officers that belong to the judiciary or legal services such as magistrates, lawyers or oaths commission;
    • Public school headmaster;
    • Police officers who are ranked SI and above / Military officers ranked Captain and above (or its equivalent);
    • Village head / Justice of Peace / Warden/ village elder / community leaders / Sidang(Councillors)/ county development officer / JKKK Chairman (Village Development and Security Committee);
    • For Sabah and Sarawak – ethnic group leader / Native Chief / Captain / Pemanca Councillors / Sabah park officer;
    • Other officers approved by SOCSO from time to time.

Loan Disbursement Methods

  • Education loan are disbursed by:
    • For tuition fees: Cheques drawn for or credited directly into the institute of higher educations’s account;
    • For sustenance allowance: credited directly into the student’s Maybank account;
    • For insurance payments: paid directly to the insurance company
  • Disbursements will be made on a staggered basis for each semester. For the initial disbursement, completed documents must be furnished by the students to PERKESO. For subsequent disbursements, students must submit latest examination results for the semester.
  • Disbursements are made on a staggered basis to ensure that the students continue to perform well academically. By submitting the examination results, SOCSO will be able to monitor the student performance.
  • Should the student fail to achieve a minimum Cumulative Grade Point Average (CGPA) of 2.00, the education loan disbursement for the upcoming semester will be suspended temporarily until the student has attended a counseling session conducted by SOCSO counselors.

Click here for more details on:
Education Loan Repayment Installment
Channels To Pay The Education Benefit

Source: PERKESO Education Benefit