FINANCIAL SCHEMES: STUDY LOAN FAQs

Q1: What is the Study Loan?

A: It is a loan scheme comprising of 2 components: Component A and Component B. Students can apply for either one or both components.

Component A helps to settle 25% of the subsidized tuition fees while Component B provides $1000 for the living expenses.

Q2: Who is eligible to apply for the Study Loan?

A: Students who are full-time Singaporeans or Singapore PR can apply. The loan will be awarded only to students with Gross Monthly Per Capita Family Income Ceiling not more than $1000.

Component A:

Only students who have applied for the Tuition Fee Loan Scheme and/or who have been awarded a tuition fee loan/subsidy through the CPF Approved Education Scheme or Mendaki, provided that the total amount of the aforementioned loan and/or subsidy is NOT less than 75% of the tuition fees, can apply for the loan.

Component B:

Only students who have applied for the Tuition Fee Loan Scheme and/or who have been awarded a Tuition Fee loan/subsidy through the CPF Approved Education Scheme, Mendaki, or Study Loan A provided that the total amount of the aforementioned loan and/or subsidy is NOT less than 100% of the tuition fees.

Q3: How much can I borrow under the Study Loan Scheme?

A: Component A – up to 25% of the subsidized tuition fees payable.

Component B - $1,000.00 for each academic year, to meet living expenses.

Q4: Is there interest charged for the Study Loan Scheme?

A: Tier 1 (Gross monthly per capita family income ceiling up to $500): Waiver of interest

Tier 2 (Gross monthly per capita family income ceiling up to $1000): Interest is charged

Interest will accrue immediately upon graduation. For those with NS obligations, the interest will be charged 1 month after ORD.

Q5: What is the interest charged for the repayment of the Study Loan Scheme?

A: The interest rate charged for the Loan under Tier 2 will be the average prime lending rate of OCBC, UOB and DBS prevailing on the first day of each quarter.

Q6: Do I need a guarantor for the Study Loan application?

A: Yes, you must have a guarantor for your loan. The guarantor must be a Singaporean or Singapore PR aged between 21 and 60. He or she must not be an undischarged bankrupt. There is no income qualification.

Q7: What is the obligation of the guarantor under the Study Loan Scheme?

A: The guarantor is responsible for settling the full outstanding loan and interest charges if the student defaults payment.

Q8: How do I apply for the Study Loan Scheme?

A: The procedures to apply for Study Loan are as follow:

Obtain the application form from One-Stop Centre or download the form from here.
Enclose copies of all supporting documents.
Submit the completed form with the supporting documents to One-Stop Centre during the application period.

Q9: What are the documents that are required for the Study Loan application?

A: A copy of each of the following:

Your NRIC and your guarantor’s NRIC
Each of your family member’s NRIC/birth certificate
Income statement of each working family member
Divorce certificate of parents (if applicable)
Death certificate of family member (if applicable)

Q10: I have applied for the CPF Education Scheme, can I also apply for the Tuition Fee Loan and/or Study Loan?

A: Yes you may. Your tuition fees will first be paid by the CPF Education Scheme. Any outstanding amount will be paid by the Tuition Fee Loan followed by the Study Loan.

Q11: What is the repayment period for the Study Loan Scheme and when do I start to pay?

A: Maximum repayment for Tier 1: 2 years.

Maximum repayment for Tier 2: 5 years.

The repayment period begins on 1st April or 1st October depending on the semester you graduate.

If you leave the course without completing the study, the loan will become immediately due and payable. For those with NS obligations, repayment will commence 2 months after completion of NS.

Q12: What is the minimum amount of repayment for the Study Loan Scheme per month?

A: Repayment can be made in one lump sum or by minimum monthly installment of $100.00.

Q13: If I have taken up the Tuition Fee Loan and Study Loan A and B, what is the minimum amount of repayment per month?

A: $300.

Q14: Can I defer the commencement date of repayment for the Study Loan Scheme if I have to serve National Service?

A: For students serving National Service, repayment starts 2 months after ORD. You must inform the Polytechnic of your ORD date within 1 month of graduation.

Q15: Do I need to re-apply for the Study Loan Scheme every semester?

A: Once the loan is approved, it will be valid for the entire course. There is no need to re-apply for the loan every semester.

Q16: I would like to terminate the Study Loan from next semester onwards, what should I do?

A: For termination of the loan before graduation, you will be required to inform the Office of the Registrar via email to Help-Registrar@rp.sg.

Q17: Can I pay for my supplementary fees using the $1000 under the Study Loan Component B?

A: Yes you may. The school will deduct an amount equivalent to the supplementary fees from the $1000 before disbursing the remainder to you.

Q18: How do I get the $1000 from the Study Loan B?

A: The school will disburse the money to your bank account after your application has been approved. You will need to complete a Credit Authorization form, get it endorsed by your bank and then submit it to the Office of the Registrar.

Q19: My school fees are covered by a scholarship/bursary, can I also apply for the Study Loan component B to cover for my living allowance?

A: Students who hold scholarships/bursaries where the terms specifically states that the quantum of scholarship/bursary are meant to cover the tuition fees only, are allowed to borrow up to the maximum living allowance only under the Study Loan Scheme.

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