Do you use bank loan to pay your school fees?

• RatedR

  3 Jan 08, 20:38

  like in university,
  or too clever use scholarship
  
  or what other schemes u use if you not the rich type of person
• FireIce

  3 Jan 08, 20:38

  tot can use parents CPF?
• 798

  3 Jan 08, 20:40

  yes... n i regret it.
• RatedR

  3 Jan 08, 20:41

  Originally posted by FireIce:

  tot can use parents CPF?

  really
  my relative use bank loan, when u end sch and start work, u must pay back the back. its interest free
• RatedR

  3 Jan 08, 20:42

  Originally posted by 798:

  yes... n i regret it.

  why regret
  
  my mum's friend, whom now has 4 kids still have not done settling the loan
• FireIce

  3 Jan 08, 20:45

  http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/Education/EDN.htm
  
  after grad must repay
  over max 12 years
• Gasfene

  3 Jan 08, 20:54

  Originally posted by RatedR:

  really
  my relative use bank loan, when u end sch and start work, u must pay back the back. its interest free

  its interest free only if you pay back immediately after graduation...if not, interest rate will come in.
• RatedR

  3 Jan 08, 20:54

  Originally posted by FireIce:

  http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/Education/EDN.htm
  
  after grad must repay
  over max 12 years

  The student has to repay the amount withdrawn plus interest, in cash subsequently.
• RatedR

  3 Jan 08, 20:55

  Originally posted by Gasfene:

  its interest free only if you pay back immediately after graduation...if not, interest rate will come in.

  oic
  
• No9

  3 Jan 08, 23:00

  Originally posted by Gasfene:

  its interest free only if you pay back immediately after graduation...if not, interest rate will come in.

  yup. the local banks using the prime lending rate i think. 5.5% P.A .
• FireIce

  4 Jan 08, 00:57

  Originally posted by RatedR:

  The student has to repay the amount withdrawn plus interest, in cash subsequently.

  the interest is the prevailing CPF interest
  ur lao peh let u use the money, cannot earn the interest inside, it's natural u have to pay back
  
  monthly deduction from ur bank account back into the CPF acct
• Spartans

  4 Jan 08, 01:02

  Originally posted by FireIce:

  the interest is the prevailing CPF interest
  ur lao peh let u use the money, cannot earn the interest inside, it's natural u have to pay back monthly deduction from ur bank account back into the CPF acct

  But the problem is not every parent has sufficient CPF fund left for their children to use for tertiary education. Hence no choice have to take bank loan.
• beavan

  4 Jan 08, 01:06

  Originally posted by Spartans:

  But the problem is not every parent has sufficient CPF fund left for their children to use for tertiary education. Hence no choice have to take bank loan.

  yeap, just suck it and take lo, u rather no education?
• Gasfene

  12 Jan 08, 23:20

  Here's an example:
  
  education per year: 6k
  total no of years you studied: 3years
  total: 6k * 3 = 18k
  
  Interest rate of about 5% per annum applies immediately after you graduate.
  
  Interest is counted every month so 5% per annum translate to (5/12)% per month.
  
  Interest for the 1st month: 18k * 5/12* 1/100 = $75
• Gasfene

  14 Jan 08, 17:50

  Originally posted by Spartans:

  But the problem is not every parent has sufficient CPF fund left for their children to use for tertiary education. Hence no choice have to take bank loan.

  CPF also needs to pay interest. And the interest starts straight away after borrowing the money. The interest rate is lower but the interests have already started counting once you borrow.