![]() Read Also: Complete Guide To Tertiary Education Financing And Loans For Students In Singapore #4 Your Child Is Responsible For Repayment Of Monies Drawn From Your CPF In other words, these two schemes are not mutually exclusive, subject to your eligibility to qualify for each scheme, of course.Īnother way to cover the remaining portion of the tuition fees include education loans from banks or even home equity loans. If you find that your available CPF monies does not cover the entirety of the payable tuition fees, you use the MOE Tuition Fee Loan Scheme to cover the balance. #3 You Can Use Your CPF Monies Together With The MOE Tuition Fee Loan To Finance Your Child’s Education If you don’t, you might be in for a shock when you turn 55 and a large chunk of your OA savings get transferred to your Retirement Account, which you cannot use to help your child finance their tertiary education. This point is significant, because if you will be 55 and above by the time your child begins tertiary education, you need to ensure you have enough monies to meet the FRS. To meet the FRS, you can also set aside the Basic Retirement Sum (BRS) and pledge a property your own. If you are 55 years old or older, you will first need to set aside the Full Retirement Sum (FRS) in your Retirement Account before you can use any remaining savings in your OA up to the Available Withdrawal Limit. Your current OA balance (excluding amounts set aside for housing or other uses) The Available Withdrawal Limit is defined as the lower of the two:Ĥ0% of your accumulated OA savings (which is made up of your current OA balance, plus any OA monies already withdrawn for education or investment, excluding monies used for housing) If you are below the age of 55, the amount of CPF Ordinary Account (OA) monies you can use for the CPF Education Scheme is your Available Withdrawal Limit, which you can check in the CPF website, under My Statement. #2 Limits On How Much CPF You Can Use To Pay For Your Child’s Tuition Fees Read Also: Complete Guide To Using Your CPF To Pay For University And Polytechnic Fees Under The CPF Education Scheme * Approved degree programmes offered in partnership with overseas universities at these schools are also included under the CPF Education Scheme.Īccording to the CPF Education Scheme Terms and Conditions, a guarantor is required if the student is a foreigner. – Singapore University of Social Sciences – Singapore University of Technology and Design – Institute of Technical Education (for students pursuing a Technical Engineer Diploma or a Technical Diploma in Culinary Arts)* The following is the list of Approved Educational Institutions under the CPF Education Scheme. The CPF Education Scheme specifies that the student must be enrolled full-time in a diploma/degree programme at an Approved Educational Institution (AEI) and is paying subsidised tuition fees. Usage of your CPF for other relatives might be possible on a case-by-case basis. The CPF Education Scheme is the mechanism that allows you to use monies in your CPF Ordinary Account to pay for the subsidised tuition fees for your child, your spouse, or yourself. #1 Criteria For Using CPF To Pay For Your Child’s Tuition Fees Read Also: Would You Give Up Your Own Retirement Plan To Fund Your Child’s Education? I Wouldn’t. Here are 5 important considerations you need to know about. Understanding these policies in advance will allow you to plan ahead and avoid any surprises when the time comes to pay for your child’s tertiary school fees. While you can do so, usage is governed by rules set by the CPF Board. ![]() Read Also: Want To Provide Your Child The Best Future? Here’s A Stress-Free Way To Start Investing TodayĪs Singaporean parents who’ve worked hard over the years and have faithfully contributed to your own CPF accounts every month, you may also wish to use some of that hard-earned money to help pay for your child’s polytechnic or university education. This includes postponing your return to the workforce to care for your young child, moving to a housing estate that’s nearer to your child’s dream school, or delaying your own retirement plans to support your children’s tertiary education ambitions. As parents, you want to do everything you can for your child(ren).
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