CPF is primarily intended to meet  members’ retirement needs. As such, while students (borrowers) may take a loan from a member (lender)’s CPF Ordinary Account (OA) for their education, there is a limit on the total amount that can be withdrawn for this purpose.

 

You may wish to consider MOE’s Higher Education Student Loan (HESL) to finance the student’s education. 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 respectively. 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.

 

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