As your Ordinary Account (OA) savings are meant to boost your retirement savings when you turn 55, you will not be able to reserve your OA savings for a student’s tertiary education. At age 55, your Special Account (SA) and OA savings will be transferred to your Retirement Account (RA) to meet the Full Retirement Sum (FRS) applicable to you. Your RA savings will continue to grow steadily and provide you with lifelong monthly payouts in retirement. You may find out more about the prevailing interest rate.

 

If you have set aside your FRS, whether fully in cash or with a mixture of property and cash, any remaining SA savings will be transferred to your Ordinary Account (OA). You are eligible to withdraw in cash the remaining OA savings after setting aside the FRS, or up to $5,000 if you are unable to set aside the FRS. You can then use the cash as you wish, including towards the student’s education.

 

You may wish to consider the MOE's Higher Education Student Loan (HESL)  to finance the student’s education. The MOE HESL is available to all full-time students of Post-Secondary Education Institutions (PSEIs) and covers up to 90% of the tuition fees payable. For eligible students, it may also cover the balance of your subsidised tuition fees not covered by the base provision, as well as a loan for living allowance. Additionally, it is 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.

 

The student can also approach their educational institution to find out about the other financial assistance schemes available.