What Is A Tuition Fee Loan And How Does It Work In Singapore?


A tuition fee loan in Singapore is a type of financial assistance provided to students pursuing their higher education but may need the means to pay the full tuition fees.

The Singaporean government offers loans designed to help students pay their tuition fees without putting too much financial strain on their families.

To be eligible for a tuition fee loan, students must meet certain criteria, such as being a citizen of Singapore and enrolling in a course approved by the government.

The loan is repayable over a specified period, typically after the student has completed their studies and started working.

With a tuition fee loan, students in Singapore can achieve their educational goals without worrying about the cost.

Let’s explore how to go about the application process and why you should consider taking one.

What Is A Tuition Fee Loan?

A tuition fee loan assists students in paying their tuition. Students studying in Singapore are especially encouraged to apply for this loan. Your school and course of study will determine the amount you can borrow.

There are various benefits to paying your college fees with a tuition fee loan, and among them include the following:

  • Tuition fee loan repayment typically has lower interest rates than other types of loans.
  • Tuition fee loans typically have a longer repayment duration than other types. This implies you’ll have a longer time to repay the loan, and it’ll be less expensive.

Note: It is important to note that tuition fee loans are unavailable to students attending private schools. If you attend a private school, you must obtain a study loan.

How Does A Tuition Fee Loan Work?

A tuition fee loan in Singapore helps students pay for their higher education costs.

Here’s how it works:

  • Students apply for loans by submitting the required documentation to the government.
  • The government assesses the student’s eligibility based on certain criteria.
  • The loan covers the tuition fees for the student’s course if approved.
  • The student repays the loan over a specified period after completing their studies and finding employment.
  • Students make monthly repayments until the loan is fully repaid.
  • The government may also offer flexible repayment options to help students manage their financial obligations.

A tuition fee loan is valid for the entire course. It is interest-free while you are studying, with interest accruing after you graduate.

Typically, loans secured at the polytechnic level have a maximum payback period of ten years. However, the maximum repayment time for loans obtained at the university level is 20 years.

Tuition Fee Vs Study Loan

A tuition fee loan covers up to 90% of a student’s subsidized tuition price, with the remaining covered by the study loan.

On the other hand, the study loan provides students with a loan to help them meet their day-to-day expenses. We will compare the two and help you decide which is better for funding your study.

Here Are The Key Differences Between The Two Loans

  • Tuition loans are loans taken out by students to cover the cost of their tuition fees, while study loans are loans taken out by students to cover the cost of their tuition fees, living expenses, and other fees related to their studies.
  • Tuition loans are available to eligible students through banks and other financial institutions approved by the Monetary Authority of Singapore (MAS). Study Loans are available through selected banks, approved by the Ministry of Education (MOE), or through the government’s Study Loan Scheme.
  • Tuition loans are unsecured loans, meaning that no collateral is required. Study loans are secured loans, meaning borrowers must provide collateral, such as a guarantor or a property.
  • Tuition loans are typically offered at a fixed interest rate, while study loans are usually offered at a floating interest rate.
  •  Tuition loans are disbursed directly to the school, while study loans are disbursed directly to the borrower.
  • Tuition loans are typically repaid monthly, while Study Loans are typically repaid after the borrower has completed their studies.
  • Tuition Loans can cover tuition fees for various courses, including full-time, part-time, and distance learning courses. Study loans can only be used to cover tuition fees for full-time courses.

Tuition Fee Loans In Singapore

As a student, you can obtain various loans to assist with the cost of your education. Tuition fee loans and study loans are two of the most popular. But what’s the difference between them?

Many Singapore students rely on study loans and tuition price loans to pay for their education. The tuition fee loan covers up to 90% of a student’s subsidised tuition price, with the remaining covered by the study loan.

Furthermore, the study loan provides students with a loan to help them meet their daily expenses.

How To Apply

Students interested in applying for the TFL should consult with the Singapore Management University (SMU).

DBS and OCBC accept applications from Nanyang Technological University and the National University of Singapore.

You can also acquire an NTU study loan from a renowned institution, as this is somewhat of a direct ticket. Any student interested can always opt for a DBS tuition fee loan as their interest rates are relatively low compared to the rest.


All full-time undergraduates are eligible except overseas undergraduate students who declined the MOE Tuition Grant or were awarded admission without the MOE tuition fee loan.

The percentage of coverage is based on a Singaporean citizen’s subsidized tuition fee rate for the identical course and will apply to the following:

  • International undergraduate students who have exhausted their MOE Tuition Grant subsidy and are now required to pay the full tuition fee
  • Fifth-year undergraduate students pursuing dual degrees
  • Students enrolled in Concurrent Degree Programmes will no longer be eligible for the loan once they are assessed a graduate tuition cost.
  • Undergraduate students studying iBLOC and Special Term modules

Part-time undergraduates who meet the following requirements:

  • Must be a Singaporean pursuing the first undergraduate course of study, depending on the level of need determined.

Tuition Fee Loan Requirements

First, you will need a guarantor. They must be an adult between the ages of 21 and 60 who is not insolvent. Only Singapore Citizen guarantors are accepted for citizen students.

For SPR students, only Singaporean/SPR guarantors are acceptable; and for international students, only Singaporean/SPR/non-Singaporean guarantors are acceptable.

Singapore Citizens and Singapore Permanent Residents who have non-accredited diplomas or A-level certificates and are pursuing undergraduate degrees must take bridging/top-up modules.

To complete the TFL, first-time applicants and their Guarantors must visit the relevant bank with the completed Application Form, their identity cards/passports, and their NUS Student Cards.

If a new student has not yet received their NUS Student Card, they can submit a screenshot of the ‘Confirmation Page for Completion of Registration from EduRec, displaying their Student ID.

Learn How To Acquire A Tuition Fee Loan Today

In Singapore, there is only one tuition fee loan available, which the Ministry of Education provides.

Regardless of whether DBS or OCBC administers the loan, all features of the loan are the same. BTS credit will equally give you the tuition loan to finish your studies.

If you need help, contact us at BST Credit today to learn more about tuition fee loan or apply for a loan with us now.

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