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Study Loan in Singapore – Know Eligibility, Criteria and Related Facts

Singapore is recognized as every student’s dream country. Nowadays, students choosing to study abroad look for more than the best universities. And Singapore has no match!

The country stands among the top-picks for students looking to get quality education, value for funds, holistic growth, and an opportunity to work in the country. As a diverse nation, Singapore shines in what it has to provide to its foreign students – ancient history, vibrant lifestyle, striking tourist temptations, and delicious food.

In this blog, we will explain how you can get higher education in Singapore with the help of a study loan and turn your dreams into a reality. We will put deep light on the eligibility, criteria, and facts related to study loans in Singapore. Hopefully, you enjoy reading the post!

Table Of Contents

What exactly is the study loan?
How does it work?
Eligibility To Getting Study Loan In Singapore

  • For University
  • For Polytechnics

5 Surprising facts related to studying loan
How To Clear Study Loans
Wrapping Up

What exactly is the study loan?

A study loan or education loan is basically an amount borrowed from finance higher education-related expenditures. Study loans’ main purpose is to cover the cost of tuition, books, and other living expenses while the student (borrower) is in the process of pursuing graduation or post-graduation.

How does study loan work?

Study loans are primarily issued for the purpose of joining an accredited institution or university and getting an academic degree.

Study loans in Singapore can be taken from the government or through private-sector lending specialists. Governmental loans offer a moderate rate of interest with fast loan approval and some also offer subsidized interest.

However, private-sector study loans follow more than a standard lending process for application, with a typically higher rate of interest than the government.

Eligibility To Getting Study Loan In Singapore

  • For University
  • For Polytechnics

For University


Undergraduates who have undergone funding of the tuition fee payable by Singapore Citizens from at least one or an aggregate of the following:

  • CPF (Central Provident Fund) Study Loan
  • Tuition Fee Loan
  • MENDAKI (Council for the Development of Singapore Malay/Muslim Community) Tertiary Tuition Fee Subsidy/Loan
  • Scholarship/award
  • A fee subsidy/loan from a certified government agency

Key Features

  • Nearly 20% of the subsidized tuition fees payable by Singapore students and or up to $3,600 yearly living expenditures.
  • Interest-free throughout the discipline of study.
  • The interest rate is imposed at an average rate of DBS (Development Bank of Singapore Limited), and UOB (United Overseas Bank Limited) after graduation.
  • 20 years repayment term for the interest-bearing loan, and up to 5 years for an interest-free loan.
    Least monthly repayment of $100.
  • Repayment will begin 6 months after graduation/post-graduation.


  • Age should be 21 to 60 years
  • Is not a bankrupt
  • Per capita income of between $12000-30000

For the full guidelines to apply for a Study Loan, you can visit the respective university’s website.

For Polytechnics


  • Tuition Fee Scheme
  • MENDAKI Scheme
  • CPF scheme

Key features

Key features are the same as that of the university.

5 Surprising facts related to studying loan

1. 6% of borrowers get a third of all outstanding study loan debt:

Brooking states that 6% of borrowers owe $100,000 in study loan debt. Only 2% owe more than $200,000. About 18% of borrowers owe less than $5,00.

2. Around 26% of borrowers owe 50% of all outstanding study loans – and it’s for the graduate institution:

Graduate institution’s study loan debt estimates for around 48% of all outstanding amounts. And nearly 24% of all education loans are taken by students without a bachelor’s degree.

3. 30% of bachelor’s degree recipients graduate with no study loan

Around 30% of all bachelor’s degree recipients graduate with no debt and approximately 23% of bachelor’s with less than $20,000 in mortgages. Amongst for-profit institutions, around half of all students owed more than $40,000, but only 12% of those who attended four-year degree classes.

4. Many students also borrow to support the cost of living

Students don’t take study loans to pay for their tuition fees and other educational fees but they also get funds to support the cost of living. It is to be analyzed that on average 22% of the students at public colleges are with no net tuition and they borrow around $30,000 or more.

5. Students who owe the most aren’t the ones who default on debt:

Students with graduate degrees have the lowest default rates rather than accounting for around half of all study loans. Higher default rates are more familiar for students who went to for-profit institutions. Around 40% of borrowers from for-profit 2-year courses default on their mortgages within 5 years of initiating repayment. In addition to it, 32% of those who went to for-profit 4-year courses defaulted at this same time.

How To Clear Study Loans

Here we have framed a layout and step-by-step procedure to pay off the study loan.

1. Refinance study loans

When it comes to repayment, the most reliable way is to refinance study loans. The study loan refinancing rates have fallen greatly and are now among the lowest in current reminiscence.

Here’s an illustration of how much cash you can save with this study loan refinance calculator:

Let’s imagine that you have study loans at around 9% interest rate owed for 10 years, and you can refinance those study loans with a private moneylender at 3%. If you have $50,000 of education loans, you can save $151 each month and $18,069 as a whole.

2. Register in an income-driven repayment Scheme

Enrolling in Income-driven repayment programs such as PAYE (pay as you earn), IBR (Income-Based Repayment) one can easily repay the education loan. These programs are basically offered by the federal government.

3. Exploring the option for forgiveness

The Public Service Loan Forgiveness scheme is basically a federal program that forgives federal education loans for those who are employed full-time in a certified federal or regional government service job.

Unlike income-driven repayment programs, the debt forgiven through the forgiveness scheme is not obedient to income tax.

4. Consolidate education loans

Federal study loan consolidation allows you to combine your existing federal student loans into a single Direct Consolidation Loan. Nonetheless, unlike study loan refinancing, the federal education loan consolidation process does not reduce your interest rate or impact monthly payment.

Wrapping Up:

Hopefully, you have read and understood what exactly the study loan is and how one is eligible for it in Singapore. If you want to know more about it, then you can consult Jurong East moneylender. They will thoroughly help you know the basics of personal loans in Singapore for foreigners and you can then fulfill your dream graduation or post-graduation degree overseas.

If you have any doubts or want to ask something, then do comment below. We’ll help you in the best way possible!

Happy Reading!


Cash Direct

Cash Direct is the best licensed moneylender in Singapore providing all types of loan facilities. For a quick Online loan in Singapore call @66351302.

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