You will be informed in writing if there are not enough savings in your Ordinary Account for the payment of the tuition fees. In such cases, you will need to make alternative arrangements to pay the tuition fees in cash, or consider other financing options such as the MOE Higher Education Student Loan (HESL) or use of the student (borrower)'s Post-Secondary Education Account (PSEA) funds.

 

The MOE HESL is available to all full-time students of the polytechnics and universities and covers up to 90% of the tuition fees payable. For eligible students, it may also cover the balance of the subsidised tuition fees not covered by the base provision and loan for living allowance. It is also interest-free during the course of study, unlike the CPF Education loan where interest starts to accrue from the time of withdrawal.

 

If the student is unable to repay the MOE HESL due to further studies or financial difficulties due to unemployment or medical condition, he/she may appeal to defer repayment and interest and the appeal will be considered on a case-by-case basis. While CPF may also allow for deferment during challenging times, the interest continues to accrue as it is essential to fully restore the savings intended primarily for retirement. For more information on the MOE HESL, please refer to this link.