Surprising fact: Many students in Singapore pay no interest while they study — government education loans are interest-free during your course.
We give you a clear view of how the tuition loan interest rate is set so you can plan with confidence. New agreements signed from 1 April 2024 reference 3-month compounded SORA plus 1.5 percentage points for normal billing, and late payments add a higher margin.
What this means: interest reviews happen every April and October, using MAS-published 3M SORA figures. Banks such as DBS and OCBC handle administration, while digital applications speed up the process.
Repayment options range from lump-sum to equal monthly instalments, with a S$100 minimum and tenors up to 20 years for interest-bearing agreements. We’ll help you compare options and spot timing that protects your finances.
If you want tailored guidance on structuring your plan, Whatsapp us for a discovery session and we’ll map next steps together.
Key Takeaways
- Government-backed schemes are interest-free during study, making them cost-effective for many students.
- Post-study pricing ties to 3M SORA + 1.5pp; late payment carries a larger margin.
- Interest checks occur each Apr and Oct using MAS data—timing matters.
- DBS and OCBC handle administration; digital application keeps the process fast.
- Repayment can be monthly or lump-sum, with S$100 minimum and up to 20 years tenure.
- Contact us on Whatsapp for a tailored discovery session to match options to your goals.
Singapore education financing at a glance: subsidies, tuition fees, and loan options
Understanding the mix of government aid and private finance helps you decide what to pay now and what can be deferred.
MOE schemes cover most subsidised tuition fees for Singaporean students. The Tuition Fee Loan (TFL) can fund up to 90% of the subsidised amount for comparable programs, but it excludes compulsory miscellaneous charges and hostel costs. TFL needs one guarantor aged 21–60 who is not an undischarged bankrupt.
Subsidised vs non-subsidised: what’s covered
Subsidised tuition and related MOE support reduce out-of-pocket fees. Study Loan (SL) is means-tested and helps families with lower per capita income (PCI). SL can cover the remaining 10% or 20% of subsidised fees and offers optional living allowances for full-time students.
Government-backed funds vs bank education options
Government schemes are generally cheaper and simplify repayment, while bank education loans can top up amounts for non-subsidised fees or extra costs that aid does not cover.
- Who benefits: Singaporeans and eligible PRs for TFL; SL has PCI limits for assistance.
- Who’s excluded: International students paying non-subsidised fees cannot use these MOE schemes.
- Disbursement order: MTTFS, PSEA, CPF Education, TFL, SL, bursary, then GIRO—funds apply in sequence against payable fees.
Need a clear plan to combine schemes and private offers? Whatsapp us for a discovery session and we’ll map a tailored approach to your payment timing and verified cost needs.
How tuition loan interest rate works in Singapore
After you finish study, the way your MOE balance is charged switches to a market-linked formula. This affects the amount you pay over time and makes costs more transparent.
3M SORA plus 1.5%: the standard rate after graduation
Effective for new agreements from 1 April 2024, the standard benchmark is 3M SORA plus 1.5%. The government ties post-graduation charges to this blended measure so your cost tracks broad market movements.
Half-yearly resets: why rates change every April and October
MAS publishes the 3M SORA on 1 March and 1 September. Those figures apply for the next six-month period (Apr–Sep and Oct–Mar). Because SORA is a rolling compounded average of daily interbank cash transactions, the published figure can move with market liquidity and time horizons.
Late payment interest: 3M SORA plus 4.5% explained
Missed payments attract a higher spread — 3M SORA plus 4.5% — as the fee charged for late settlement. Understanding this helps students avoid extra costs by scheduling payments on time.
Want a simple routine to watch SORA and budget for changes? Whatsapp us for a discovery session and we’ll set up an easy plan you can follow.
MOE Tuition Fee Loan (TFL): coverage, eligibility, and costs
The MOE tuition fee loan covers up to 90% of the subsidised tuition fee payable for a comparable program. It does not cover compulsory miscellaneous items or hostel charges, so plan for those extra fees separately.
Who can apply and guarantor rules
The fee loan is open to Singaporeans, SPRs and eligible international students for many undergraduate programs. Some courses have program limits; check your course details before applying.
Guarantor requirements: one guarantor aged 21–60 who is not an undischarged bankrupt. Singaporean students must provide a Singaporean guarantor; SPRs need a SG/SPR guarantor; international applicants may use a guarantor of any nationality.
When charges start and how repayment works
During study the account is interest-free. After graduation, charges begin and are linked to the published market benchmark. You can repay as a lump sum or by equal monthly instalments. Minimum monthly payment is S$100, and tenors extend up to 20 years.
Application and administration
Apply once for the duration via DBS digital or OCBC branches. The bank handles disbursement so fees are paid to the school in sequence with other schemes.
Want a walkthrough of amounts, forms, and timing? Whatsapp us for a discovery session and we’ll help you map the best plan.
MOE Study Loan (SL): who it’s for and how interest applies
The Study Loan is designed for full-time undergraduates to cover the remaining 10% or 20% of subsidised tuition payable by eligible Singaporean students. It also offers an optional living allowance of S$1,200, S$2,400 or S$3,600 per academic year.
Who qualifies: Singapore citizens and SPRs with per capita income (PCI) up to S$2,700, and specified international bands. The SL must run alongside other schemes such as TFL, CPF Education, MTTFS, Mendaki or PSEA so total coverage meets MOE thresholds.
Interest-free periods and special rules
During study the account is interest-free. For low-PCI SG/SPR graduates (PCI ≤ S$950), the account remains interest-free for up to five years after graduation.
Repayment basics
- Repayment begins 6 months after graduation or when you start work.
- Options: lump sum or equal monthly instalments, minimum S$100 per month.
- Tenor: up to 5 years if still interest-free, or up to 20 years if interest-bearing.
Guarantor and application: One guarantor (age 21–60, not an undischarged bankrupt) is required. Apply via the Financial Aid Application Portal, then sign the DBS Study Loan digital form within the window provided.
Need help estimating the amount and planning repayment? Whatsapp us for a discovery session and we’ll guide you step by step.
Part-time students and international students: special rules you must know
Part-time undergraduates who are Singapore citizens can access the tuition fee loan to cover up to 90% of subsidised tuition fees for a first undergraduate degree when financial need applies.
The account remains interest-free while you study. After graduation the usual repayment period begins and charges apply.
Guarantor and application: one Singaporean guarantor aged 21–60 is required. Apply via DBS digital or OCBC branches to start the process.
Study loan variations for part-time students
The study loan works with a maximum 90% tuition fee loan cover and fills the remaining balance for eligible applicants with PCI ≤ S$2,700.
There is no living allowance for part-time applicants. If your PCI ≤ S$950 the study account may stay interest-free for up to five years after graduation; otherwise it becomes interest-bearing and follows longer repayment tenors.
International students: eligibility and funding caps
International applicants who pay non-subsidised fees are not eligible for MOE schemes. If you qualify for subsidised status, combined support only covers the subsidised amount payable by singaporean students — not full international fees.
- Checklist: ID, proof of PCI, guarantor details, and school fee schedule to complete your application.
- Timing: submit early via DBS or OCBC to meet disbursement windows.
- Complex cases (mixed funding, guarantor queries): Whatsapp us for a discovery session.
From application to disbursement: timelines, forms, and banks
Knowing each step from form submission to funds transfer saves time and prevents surprise charges. Follow the disbursement order so your payable amounts are covered in the correct sequence.
How funds are applied
Disbursement sequence: Mendaki Tertiary Tuition Fee Subsidies, PSEA, CPF Education, Tuition Fee Loan, Study Loan, bursary, then GIRO. Total disbursements cannot exceed payable tuition and compulsory miscellaneous fees.
Application channels: DBS digital vs OCBC in-branch
DBS offers a fully digital application and signing path for the tuition fee loan and study loan. OCBC accepts in-branch submission; a guarantor may need to be present for verification.
Key windows and late-application caveats
Typical windows: Semester 2 AY2024/25 up to 15 Jan 2025 (late 16 Jan–31 Jul), Semester 1 AY2025/26 up to 15 Aug 2025 (late 16 Aug–31 Dec). Late forms may not reflect on the e-bill and can trigger a fee charged for overdue payment.
Repayment basics
You can repay by lump sum or equal monthly instalments. The minimum monthly payment is S$100 and interest-bearing accounts may extend up to 20 years.
“Submit early, check your e-bill, and confirm disbursement order — it prevents costly surprises.”
- Tip: Keep your account and guarantor details ready before each application period.
- Need help? Whatsapp us for a discovery session and we’ll map timing with your school billing cycle.
Product roundup: compare TFL, SL, and bank education loans in Singapore
A clear product roundup lets you weigh coverage, eligibility, and long‑term payment impact. Below we highlight core differences so you can pick an option that fits your course costs and cash flow.
TFL vs SL: coverage, income criteria, and triggers
TFL covers up to 90% of subsidised fees and stays interest‑free while you study. After graduation charges apply (market benchmark plus margin). Minimum monthly instalment is S$100 and tenors reach 20 years.
SL is means‑tested and fills the remaining 10% or 20%. It may remain exempt from charges for up to five years for low‑income graduates (PCI ≤ S$950). Repayment starts six months after graduation or employment.
Bank options: EIR, fees, and repayment flexibility
Bank products can top up gaps and offer longer tenors or grace periods. Compare Effective Interest Rate (EIR), processing fees, prepayment penalties, and any usage limits to get an apples‑to‑apples view.
Choosing what fits: cost, loan amount, and capacity
- Prioritize government schemes for lower overall cost.
- Use a bank product only for remaining gaps and after checking EIR and fees.
- Size the loan amount to fees you must pay now and keep cash reserves for emergencies.
Need a tailored shortlist of banks and structures for your profile? Whatsapp us for a discovery session and we’ll prepare comparisons that match your income and course costs.
Conclusion
,Close the loop on your education finances with a short, practical action plan.
Government schemes stay interest-free while you study, then switch to market-linked charges after graduation. New agreements reference 3M SORA + 1.5% and missed payments carry a higher margin. These figures reset each April and October.
Use TFL and SL to cover most tuition fee needs: TFL funds up to 90% of subsidised fees (excludes miscellaneous and hostel) and needs one guarantor. SL is means‑tested and may stay charge-free for low-income graduates.
Right‑size your loan amount, set a simple payment schedule over the coming years, and align your guarantor and application timing to avoid delays. Whatsapp us for a discovery session and we’ll help you put the plan in place.
FAQ
What does the MOE Tuition Fee Loan (TFL) cover?
TFL covers up to 90% of subsidized course charges for eligible Singapore citizens and permanent residents. It does not cover miscellaneous fees, hostel charges, or personal expenses. Students typically use savings like PSEA or CPF first, then TFL for the remaining balance.
How does the MOE Study Loan (SL) differ from TFL?
SL is means-tested and can cover the remaining 10%–20% of subsidized course charges plus an optional allowance for living costs. SL targets lower- and middle-income families and may have interest concessions for low-PCI students.
Are fees charged while I’m still studying?
Both TFL and SL are interest-free during the study period for most students. Interest for TFL usually starts after graduation. SL may remain interest-free for up to five years for eligible low-PCI students before normal terms apply.
What post-graduation terms should I expect?
After graduation, most borrowers see a shift to a standard benchmark plus a margin. The common benchmark is 3M SORA plus a small percentage for standard repayments. You’ll also choose between monthly instalments or lump-sum payments, with a typical minimum repayment of S0 and maximum tenor up to 20 years depending on the product.
How do benchmark adjustments like 3M SORA affect my repayments?
When benchmark figures reset — commonly every April and October — your monthly payout can increase or decrease as the index changes. The published margin (for example, plus 1.5% for standard borrowers) is added to 3M SORA to form your effective borrowing cost.
What happens if I miss a scheduled payment?
Late payments usually attract a higher charge, often benchmark plus a larger margin (for example, 3M SORA plus about 4.5%). Repeated missed payments can affect your credit record and may require you to liaise with your servicing bank to set up a repayment plan.
Do part-time undergraduates qualify for TFL or SL?
Part-time undergraduates may qualify under modified rules. Coverage, guarantor requirements, and timelines can differ from full-time students. Check with the servicing banks — DBS and OCBC administer many applications — for exact eligibility and documentation.
Can international students access MOE-funded support?
International students face stricter limits. Most MOE schemes prioritise Singapore citizens and PRs. Some institutional bursaries or bank products may be available, but combinations with TFL/SL are generally restricted.
How and when are funds disbursed to the school?
Disbursement follows a sequence: subsidies and any PSEA/CPF credits are applied first, then TFL and SL cover approved balances. Banks typically pay the institution directly before the term starts; timelines depend on application windows and processing by DBS or OCBC.
How do I apply and which banks handle the process?
You can apply digitally via DBS or in-branch with OCBC, depending on the scheme and school. Prepare identity documents, proof of course registration, and guarantor details if required. Apply early to avoid missing key disbursement deadlines.
When is a guarantor required and who can act as one?
Guarantors are often required for TFL/SL, especially for certain student categories. Parents or immediate family members commonly act as guarantors. DBS and OCBC administer guarantor paperwork and verification during application.
How do bank education products compare with MOE options?
Bank education products may offer higher flexibility or cover non-subsidized course fees, but they typically charge an effective borrowing cost and fees that differ from MOE schemes. Consider total payable cost, repayment flexibility, and eligibility before choosing.
What are typical repayment options and limits?
Repayments can be monthly instalments or lump-sum amounts. Minimum monthly repayments often start around S0. Tenors can go up to 20 years depending on the total outstanding and product rules. Early repayment is usually allowed without heavy penalties, but check terms.
Are there concessions for low-income students after graduation?
Yes. SL may offer interest-free periods of up to five years for eligible low-PCI borrowers, and other targeted concessions can reduce immediate repayment pressure. Verify eligibility criteria during application.
What documentation should I prepare for an application?
Typical documents include NRIC or passport, proof of Singapore citizenship/PR status, course registration, fee schedule, previous financial statements for means testing, and guarantor details. Banks will list any additional forms required.
How can I estimate the total amount I’ll pay back?
Estimate using the principal balance plus projected benchmark movement and margins. Use online calculators from DBS, OCBC, or your institution to model monthly instalments and total repayments under different scenarios.
