The MOE Higher Education Student Loan (HESL) is a better option as it is interest-free during the course of study, unlike the CPF Education loan where interest starts to accrue from the time of withdrawal. This means that if you repay the MOE HESL fully right after graduation, you will not incur any interest at all. 

 

If you are unable to repay your MOE HESL due to further studies or financial difficulties due to unemployment or medical condition, you may appeal to defer repayment and interest. Your appeal will be considered on a case-by-case basis.

 

While CPF may also allow for deferment during challenging times, 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.