What Is A Tuition Fee Loan And How Does It Work In Singapore?

Studying is a demanding milestone, yet an investment worth every coin. You might consider getting a tuition fee loan if paying for your education is overwhelming.

Find out what is tuition fee loan in Singapore, and how it works.

What Is Tuition Fee Loan?

A tuition fee loan is a type of loan you get to finance your education, and can cover up to 90% of the costs.

Tuition loan amounts are subject to the choice of school, the course you are undertaking, and type of institution (polytechnic, college, or university).

A tuition fee loan is not available for students in private schools, but you could qualify for a study loan. The tuition fee loan interest rate is lower and has a longer repayment schedule than other loans.

How Does It Work?

A tuition fee loan has the following features:

• To cover 75% of subsidised fees for polytechnic students.
• Pay 90% of subsidised fees for Singaporean university students.

• The loan tenure is subject to the course’s duration.
• You incur the agreed tuition fee loan interest rate after graduating.
• The tuition fee loan repayment period is 10 years and 20 years for college and university students, respectively.

Tuition Fee Vs Study Loan

The main difference between a tuition fee loan and a study loan is its purpose. Ideally, a tuition fee loan covers 90% of a student’s education.

In contrast, a study loan is government-based funding that caters to additional education-related expenses. Think of it as an allowance to meet the daily needs that you can only get if you have taken the tuition fee loan.

However, eligibility criteria, such asminimum gross monthly income of $2,700 are critical.

A study loan is suitable for low-income earners hoping to finance their education.

Tuition Fee Loans In Singapore

To better understand what is tuition fee loan, let’s look at the various financial services you can get.

MOE Tuition Fee Loan

The Ministry of Education (MOE) provides grants to cater to students’ fees.

You can only use these funds in universities, the Institute of Technical Education (ITE), polytechnics, and other local institutions.

If you are taking a university degree course, you can get a 90% MOE tuition fee loan and repay it in 20 years.

In contrast, you can qualify for 75% MOE tuition fee loans to finance a polytechnic diploma – the tuition fee loan repayment is up to 10 years.

You will start repaying this loan within two years post-graduation.

The tuition fee loan interest rate is approximately 4.5% per annum but is not chargeable during the course duration.

You can get MOE tuition grants for subsidised part-time and full-time studies in Singapore.

Not everyone qualifies for the MOE tuition fee loan – find out eligibility from your institution.

Tuition Fee Loan DBS

This loan is categorised under universities and polytechnics.

University DBS Loans Features

• 90% funding
• No minimum income and age limit requirements
• The interest rates accumulate after graduating and are charged per DBS, UOB, or OCBS.
• Get up to 20 years of loan repayment.
• The DBS tuition fee loan interest rate is only enforced after graduating.
• You can pay the loan once or in $100 monthly installments.

You qualify for DBS tuition fees if you are in a local university or NIES, excluding:

• Students who are benefiting from statutory or government school tuition fees.
• MENDAKI beneficiaries with 100% tuition fee subsidy.
• Students who undertake self-financed courses.
• Students with discounted tuition expenses on their CPF savings.

Other requirements for a DBS tuition fee loan include a guarantor who must: be 21-60 years old Singaporean and not bankrupt.

Polytechnic DBS Loans Features

• Get up to 75% of education funding
• Interest rates are only charged after graduation
• Loan repayments start one year after graduating, with tenures of up to 10 years.
• You can pay the loan at once or make $100 monthly installments.

You qualify if you are enrolled in a local polytechnic for fully sponsored diplomas, with limitations for:

• MENDAKI students with 100% support for tuition fees.
• Students who are paying their education expenses using CPF funds.

CPF Education Loan

You can use your CPF savings or your parents to get a tuition fee using the CPF education loan program. This loan can cover 100% of your tuition fees at a local university or polytechnic.

Repayments are one year after your graduation, with the tuition fee loan repayment being up to 12 years.

With CPF education loans:

• 100% funding
• Get lower interest rates of 2.5% APR
• Available for local universities and polytechnic students
• You can get waivers if you have a full retirement sum.

You cannot use a CPF education loan on subsequent tertiary courses.

NTU Study Loan

You can get an NTU study loan for full-time and part-time programs.

Full-time Program

This funding is suitable for undergraduate Singaporeans and PRs to finance their tuition and other expenses.

• The funds cover up to three years for the Chinese Medicine program and Biomedical sciences courses.
• The minimum monthly income requirement for every member must be $2,700.

The loan repayment plan starts six months after graduation or once you secure employment (subject to what comes first), with a five-year tenure.

The NTU tuition fee loan can be repaid on a five-year tenure (interest-free) or up to 20 years if interest is incurred.

Part-time Program

This funding is available for undergraduate Singaporeans wishing to get their first degree.

Eligibility is subject to a minimum income of $2,700 per capita and must be concurrent with a 90% tuition fee loan.

The repayment terms are similar to the NTU study loan for full-time programs.

OCBC Education Loan

Though OCBC administers MOE education loans, you can also opt for the OCBC education loan.

Both funding options are available, but your needs will determine the appropriate scheme.

You can borrow up to ten times your monthly income (or the guarantor’s) but at most $150,000.

Monthly repayments are determined by the loan tenure of up to eight years.

There are three types of OCBC education loans, frank education loans, frank tuition loans, and frank study loans.

Frank Education Loan

This tuition fee is suitable for students in local private and overseas institutions.

• Standard students repay the loan once funds are disbursed at a 5.17% APR.
• Graduated students repay the interest while in school and clear the principal plus interest after graduating at a 5.06 APR.
• Graduated plus repay the interest while in school and clear the rest one year after graduating at a 5.01% APR.

Frank Tuition Fee Loan

This option is available to students in public universities (NIE, NTU, and NUS) and doesn’t incur any interest while schooling.

Frank Study Loan

You are eligible for the frank study loan if you are an NUS student who wants to supplement with up to 20% of tuition cost.

Eligibility And Requirements

Finding out what is tuition loan for students can be a relief when progressing in your education.

The loans could be readily available if you meet the following requirements:

• You must be a Singaporean or PR.
• You must be a student at a local university or polytechnic.
• The Minimum income per capita requirement may vary, but $2,700 is recommended in most cases.
• You need a guarantor because a tuition fee loan is unsecured unless you fund your studies using the CPF education scheme.

How To Apply

Understanding what is tuition loan can help you find the right funding option for your tertiary education.

With several options for Singaporeans and PRs, here is how to apply:

• Singapore Management University (SMU)
• DBS or OCBC if you are at the National University of Singapore (NUS) or Nanyang Technological University (NTU).
• You can contact DBS if you are in other academic institutions.

Investing in your education can be expensive but worth every dollar.

You may need more funds with additional expenses to facilitate daily living.

However, licensed moneylenders like CreditMaster provide personal loans for such costs.

Contact us or apply for a loan today if you want instant funds to finance your education.