Read the latest news about Education Loan in Singapore and the best money saving tips.
How much do you need for an education loan?
The cost of education depends on the university you attend and the course you’re taking. Attending a more prestigious university, studying a specialised course such as law and medicine, or taking a postgraduate degree, would be more costly. This could require an education loan that offers a higher maximum loan amount.
What are some ways you can fund your university education?
Besides relying on family members who are able to support your university education financially, here are other ways to finance your education:
When do you start paying off your education loan?
Most tuition loans allow you to start paying off your education loan after graduation. This also means that you do not incur interest during your course of study. Keep in mind that the earlier you pay off your loan, the less you pay in interest fees.
Here’s an article with tips for university graduates to clear tuition fee loans quickly.
What are the tenures and maximum APR for each loan?
An education loan (also known as a student loan or study loan) is a loan taken by students to pay for the cost of their post-secondary education. This also includes any additional education-related expenses, such as the cost of accommodation, textbooks and other education materials.
When you take an education loan, you borrow a sum of money from the bank to be paid back within the loan tenure. The repayment comes with interest, with most ranging between 4% and 6% per annum (p.a) and offering tenures between 1 and 10 years.
You will be required to pay off this loan in regular installments throughout the loan tenure. Depending on the flexibility of repayment schemes, you could be starting the repayment the month after approval, or it could be deferred to after graduation.
To qualify for an education loan, you have to:
If you do not earn an income, you will require a guarantor to apply for an education loan:
You can apply for an education loan when you have the documents required for application, such as your letter of acceptance from the education institution. Upon submission, it will usually take up to a week for the bank to process your application.
Here are the factors for you to consider when choosing an education loan:
Most education loans offered by banks require a minimum loan amount of S$1,000. The maximum amount you can borrow depends on the annual income of your guarantor. For most banks, you can loan up to 8X or S$200,000 (whichever is lower).
No. You will have to confirm your admission before you get an education loan. When applying for an education loan, the bank will request to see your letter of acceptance from the education institution, stating your course, course duration and total course fee before your loan can be approved.
Besides the interest that you have to pay for your education loan, there are additional fees that you could incur. They include:
You will need to submit these documents when you apply for an education loan:
You can check out the bank's website for the full list of approved educational institutions.
Currently, OCBC’s Frank Education Loan has an interest rate of 4.5% p.a. You can also do your own comparison of education loans on SingSaver.