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.
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.
A tuition fee loan has the following features:
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.
To better understand what is tuition fee loan, let’s look at the various financial services you can get.
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.
This loan is categorised under universities and polytechnics.
University DBS Loans Features
You qualify for DBS tuition fees if you are in a local university or NIES, excluding:
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
You qualify if you are enrolled in a local polytechnic for fully sponsored diplomas, with limitations for:
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:
You cannot use a CPF education loan on subsequent tertiary courses.
You can get an NTU study loan for full-time and part-time programs.
This funding is suitable for undergraduate Singaporeans and PRs to finance their tuition and other expenses.
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.
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.
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.
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.
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:
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:
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.