Student loan basics

Student loans can be a game-changer because they help you invest in your future when your bank account says ‘nope’. But borrowing for your studies isn’t just about getting through uni or poly. It’s also about managing repayments smartly so you don’t start adult life deep in debt.

Types of student loans in Singapore:

1. MOE Tuition Fee Loan
   • Covers up to 90% of tuition fees at local unis and polys, depending on your school.
   • Interest only starts after graduation.
   • Repayment period: up to 20 years.
2. CPF Education Loan Scheme
   • Allows parents to use their CPF savings to pay your tuition.
   • You’ll need to pay back both the amount you took out and the interest that builds up from the day you withdraw it until it’s fully repaid. That way, your parents’ CPF savings get topped back up, and there’s still enough for their future retirement needs. Paying it back quickly helps reduce the impact on their long-term plans.
3. Bank education loans
   • Covers tuition plus living expenses.
   • Shorter repayment period (up to 10 years), interest starts immediately.
   • May need a guarantor or minimum income requirement.

How to manage your student loan smartly:

1. Understand your repayment start date
   Some loans kick in 6 months after graduation, so make sure you mark your calendar and plan ahead.
2. Pay early, if you can
   Even small monthly payments during your course can lower the final amount you owe.
3. Avoid over-borrowing
   Just because you can borrow more doesn’t mean you should. Borrow only what you need and consider funding through part-time work or bursaries.