Reducing the monthly instalment amount will mean a longer repayment period thus incurring more interest on the loan.

Under the Terms & Conditions of the CPF Education Loan Scheme, the loan must be fully repaid within 12 years, which starts one year after you graduate or leave the course of study. Any outstanding balance has to be paid in full before the end of the 12th year. Hence, if you repay at a lower monthly instalment, not only do you incur additional interest due to the prolonged repayment period, you may have to make a lump sum repayment of your outstanding loan at the end of the 12th year.

If you would like to reduce the monthly instalment (subject to a minimum repayment of $100), you may submit your application online through "Manage education loan repayments" under "Forms and e-applications" using your Singpass.

This information is sourced from CPF.