Many students find themselves in need of financial assistance when it comes to paying for college or their university.
A tuition fee loan can be a great way to help bridge the gap and cover essential educational costs. If you are looking to finance your education but don’t have the funds upfront, you may be wondering what is tuition fee loan and how it works.
But before you rush into taking out a loan, it’s important to understand how these loans work. In this article, we discuss what is tuition fee loan and how it works.
This will help you make an informed decision on the right tuition fee loan for your studies. Keep reading to learn everything you need to know about tuition fee loans.
A tuition fee loan is a type of financial aid that helps students pay for their education. The loan is typically issued by the government and other organizations to full-time and part-time students and repaid with interest. Here’s what you need to know about tuition loans.
A tuition fee loan covers 90% of a student’s college or university-subsidised fees, while a study loan covers the remaining portion of the fees. Students who have taken up the maximum tuition fee and have a gross income of $2700 or less can apply for a study loan.
Tuition fee loan is a facility set up to help students finance their education at local polytechnics, institutes of technical education, or universities. The amount you can access is determined by whether you are enrolled in a polytechnic or a university.
Students in polytechnics can get a loan of up to 75% of the subsidized costs, while those in universities can access up to 90% of the subsidised tuition fees. The loan you receive is valid and interest-free during the study period.
The tuition loan starts to bear interest once you graduate. Students who take a loan to study in polytechnics have 10 years after graduation to pay the loan. University students have a loan tenure of 20 years.
If you would like to advance your studies, here are some of the tuition fees and study loan schemes to help you advance your career in Singapore.
This tuition loan is a government program designed to assist students in financing their education. You can only use the tuition loan at local universities, polytechnics, and institutes of technical education.
The MOE tuition fee loan has a tenure of up to 10 years and covers 75% of subsidized fees at a polytechnic and 90% at a university.
You can get the MOE tuition loan by approaching the Singapore Management University. Students at Nanyang Technological University or the National University of Singapore can visit DBS or OCBC Bank for the loan.
Students in other institutions can approach DBS for the MOE tuition loan. To qualify for these loans, you must
SMU offers tuition fees loan to undergraduate students enrolled full-time. You can get a loan to cover 90% of the subsidized fees from SMU. The fees do not cover annual or miscellaneous fees.
You will need to start paying the SMU tuition loan due two years after graduation or when you secure employment. The maximum loan tenure of the SMU tuition fee is 20 years, and you will be expected to pay at least $100 per month.
Here is what you need to know about the SMU tuition loan.
DBS Bank provides tuition loans to Singaporeans, permanent residents, and non-Singaporeans enrolled in local institutions. The main features of the tuition fee loan from DBS are:
To be eligible for this loan, you must have a guarantor who is at least 21 years old and is not bankrupt. Students receiving school scholarships, or the MENDAKI tuition fee subsidy don’t qualify for this loan. Additionally, if you are using your CPF savings to pay 100% of the subsidized fees, you will not qualify for this loan.
The NTU study loan is available to both full-time and part-time students. Students can use the loan to cover their fees and living costs.
The NTU tuition fee loan is designed to help both full-time and part-time students. The following are the main terms of the loan.
Here are the steps you should follow when applying for a tuition fee loan:
The eligibility criteria and requirements depend on the lender. However, there are some basic eligibility criteria and requirements that apply to all.
To be eligible for a tuition loan, you must
Depending on the lender, you will require the following documents:
In summary, tuition fee loans can be a great way for students in Singapore to cover the costs of their education.
Though it’s not free money and must be repaid after graduation, the repayment terms are generally lenient and manageable. The application process is also relatively straightforward and doesn’t require you to provide too much documentation or paperwork.
If you have been considering taking out a tuition fee loan, we hope this article has helped clarify what is a tuition fee loan and how it works.
Are you ready to progress your career to the next level but don’t have the finances? Visit Katong Credit and apply for a loan. Katong Credit will provide you with the funds you require quickly and at an affordable rate.