The dream of higher education often comes with a hefty price tag, especially in a thriving educational hub like Singapore.
Whether it's the desire to secure a diploma, degree, or a coveted seat in a specialised program, the path towards fulfilling these academic aspirations is often strewn with financial obstacles.
For many, student loans provides financial aid to students eager to meet these educational milestones.
From understanding the cost structure of tertiary education in Singapore to evaluating different funding avenues, in this article, we’ll explore ways in which to qualify for a student loan in Singapore.
The amount you spend on tertiary education in Singapore varies depending on the level of education, the educational institution, and your citizenship status.
Post secondary education usually consists of attending a Junior College, Polytechnic or Institute of Technical Education (ITE), where students complete their ‘A’ levels or Diploma level courses. This is often followed by a stint at a university where students earn a Bachelor’s Degree and may choose to further their education with a Master’s or PhD degree.
Among these institutions, universities tend to cost the most. As for post-secondary education, Junior Colleges for Singaporean citizens cost only about $594 for the whole 18 months of the course, while Polytechnics cost about $8,700 on average for a three year course. On the other hand, a NITEC, higher NITEC or Diploma courses at an ITE can cost anywhere from $410 to $3,210 depending on the period of study.
Universities in Singapore demand more in terms of finances. Currently, a Bachelor’s Degree program in Singapore costs an average of $38,250. The fees range from $22,500 to $54,000 depending on the institution and type of courses. Professional courses like dentistry, medicine, and accountancy will cost more than other types of degrees. Here are some examples of education costs from Singapore’s six autonomous universities, based on an average three-year course:
Do keep in mind that these rates are for Singaporean citizens. All Singaporean citizens are automatically given a Ministry of Education (MOE) tuition grant, which cuts down the average education fees by 50%-80%. This is a form of education subsidy by the government.
Individuals with a PR, those who are working in Singapore with an S-pass or employment pass, and international students can also apply for the MOE tuition grant, although the subsidies are significantly lower.
Let’s look at the common ways students in Singapore finance their education. These methods are the approaches that you can consider too. Ideally, financial planning should be conducted prior to the commencement of your course to ensure a seamless progression and timely completion within the set timeframe.
Singaporean students with excellent academic and/or co-curricular performance can try their hand at applying for one of the scholarships available. These scholarships provide partial or full financing for a tertiary program.
The Singaporean MOE provides two types of loans for students. Firstly, the Tuition Fee Loan and secondly, the Study Loan. Students from any of autonomous universities and polytechnics are eligible to apply for the Tuition Fee loan, which covers 75-90% of the fees payable. The repayment tenure for this loan stretches from 10 to 20 years, depending on the level of courses taken.
Those who have exhausted their Tuition Fee loan application, and earn below $2700 per month can also apply for the MOE Study loan to cover the rest of their tuition fees.
Students can withdraw their own CPF savings to cover the entirety of their tuition fees if they have enough funds in their ordinary account (OA). Alternatively, the student’s parents or spouse are allowed to make this withdrawal to pay for their loved one’s education.
Students who don’t qualify or fail to obtain government loans and scholarships can turn to private lenders and banks. They offer unsecured loans that can be used to finance any form of educational fees.
The advantage of this loan is that no guarantor is needed, unlike the government loans and CPF scheme. Additionally, they are not limited to the amount of school fees you have to pay, as borrowers can borrow up to 10 times their salaries. However, you’re advised to plan for how much you can borrow based on your income.
In Singapore, students are fortunate to have several financing options. When it comes to student loans, they can choose from either a government loan or private loan. Here’s how you qualify for a student loan in Singapore:
The Tuition Fee loan is organised by the Singaporean MOE and students will be able to apply from their institutions, or from the banks that provide them, such as DBS and OCBC. Processing time is roughly two weeks, and repayment tenures stretch up to 20 years, with interests charged only after graduation. To qualify, you must:
(* including Singaporean citizens, permanent residents and international students)
The MOE also offers a further Study Loan for students who earn below $2700 or less per month, to cover any remaining expenses. Do refer to the ministry’s official Study Loan website on how to qualify for this loan.
Banks and lenders in Singapore provide student loans with competitive interest rates. They allow loans of up to 10x a student’s income, with fixed interest rates starting from about 3.30% - 6.00% per annum. Loan tenures last from 1 to 5 years depending on the lender. One advantage of these private loans is that processing time is extremely quick, and you’ll be approved within 15 minutes or within one working day at most. To qualify for private loans, you must:
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