Paying for higher education is never easy for the average student in Singapore; that’s why tuition fee loans are so standard. Only a select few families can support their ward’s tuition fees for an undergraduate degree and postgraduate education. Hence, others can only meet terms by collecting loans from financial institutions.
Tuition fee loans are standard among students as it offers many students the opportunity to get an education. These loans get paid back when the student is still in school or when they’ve finished school. Many financial institutions offer this aid, such as banks and money lenders like I-credit.
Although an education fee loan scheme is commonplace in Singapore, students must prepare for them. This informative article will correct all that as you’ll learn what tuition fee loans are and how they work. It’ll also provide information regarding reliable financial institutions for this loan for students in Singapore.
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What Is a Tuition Fee Loan?
A tuition fee loan is financial aid that a lender offers to help a student start or finish their educational pursuits. Unlike other forms of financial assistance, these loans are geared towards academic plans for graduate and postgraduate students. As such, they are paid directly to the educational institutions in question.
How Does a Tuition Fee Loan Work
When a student requests this tuition fee grant and it’s approved, the money is paid to their financial institution. It could be funding for a particular year, a few years, or all their school years.
After which, the student would have to pay back the loan amount. This repayment period could be while they are still in school or when they graduate. It could be in one lump sum or equal monthly instalments.
Of course, tuition fee grants aren’t free; hence there’s interest attached. The interest commencement date for this loan starts on the day the first payment gets to the educational institution. So, when students pay back their fee loan, they’ll have to pay the interest.
Advantages of Tuition Fee Loans
There’s a reason why many graduates in Singapore are tuition fees students, and this is why:
Flexible Terms
The repayment and interest accrual for student loan applications aren’t fixed. They can be adjusted to fit the needs of a student. Some of these fee loans also allow the borrowers to pay the principal after getting a job after graduation.
Long repayment Periods
The average repayment period for regular loans is 3 or 4 years, while tuition fee loans can be longer than that. This loan’s repayment period can stretch from when the student is in school till graduation.
High Approval Rates
The average student won’t have much going for their credit score and much less for their monthly income. As such, they’ll find it challenging to qualify for a fee loan. These tuition fee loan covers are preferable, as students can meet their requirements.
What Is a Tuition Fee Subsidy?
You’ll probably come across tuition fee subsidies when searching for student aid. A tuition fee subsidy is a government-funded education loan that Singaporean students can use to cover their tuition fees.
There are two types of tuition fee subsidies:
- Full tuition fee subsidy
- Partial tuition fee subsidy.
Full Tuition Fee Subsidy
The full tuition fee subsidy pays 100% of the student’s fees. Hence, the requirements for acquiring it are strict.
Partial Tuition Fee Subsidy
The partial tuition fee subsidy pays 75% or 50% of a student’s tuition fees. The student will have to complete the payment for the outstanding sum.
Of course, there are requirements for qualifying for any tuition fee subsidy, but the most important is being a Singaporean. The income qualification for students is a household per capita income that doesn’t exceed $2000.
Institutions That Offer Tuition Fee Loans
In Singapore, students get their tuition fee aid from banks or money lenders. As such, there are many institutions that a student can consider. Nonetheless, if you want to get a good loan with fair rates, you can view the institutions below:
I-credit
This Singaporean money lender started business in 2009, working with a license (106/2020). This legally licensed institution offers a 1-hour loan approval process convenient for all borrowers. They also provide an interest rate of 4%, which is relatively low among other money lenders.
Repaying the I-credit educational loan is easy, as this company offers many channels to repay their loans. As one of the best money lenders in Singapore, this institution provides A-grade customer service, where all customers get respectful treatment.
DBS Bank
This bank offers student loans funded by the government and other local institutions. Their aid is available to all local and international students that are studying in Singapore. Their funding is interest-free during the student’s study, with the average prime lending rate charged when they graduate.
The maximum repayment period for a DBS student loan is 20 years in total.
Credit 21
This licensed money lender operates with license number (62/2021). They offer credit bundles supposedly designed to cater to the needs of all clientele, including undergraduate students. Students that require tuition fee loans can visit this company and acquire a loan within 8 hours.
Katong Credit
Katong Credit is a private company that operates with license number (11/2021). Unlike banks that consider credit scores before offering loans, this lender makes things easier and uncomplicated. Tuition fee loans are available to all students through a fast application process.
What Are the Requirements for a Tuition Fee Loan?
Before you begin the loan application for a fee loan, there are some criteria that you need to possess, such as:
- Singaporean Citizenship
- A guarantor
- Collateral
- Enrollment as a full-time student at an approved education institution
- Good academic capability
Final Thoughts
Tuition fee loans offer a way out for Singaporean students who require assistance pursuing higher education. They come with extended repayment periods, reasonable interest, and the option to pay back after the borrower gets employed. To acquire this fee loan, you must be a Singaporean citizen, possess a guarantor, and be admitted into an educational institution.
Many institutions offer this study loan, such as banks and money lenders. We’ve listed some of the best choices in this article, like the I-credit loan company. If you require more assistance, contact us for more information regarding tuition fee loans.