Question 1

What is the interest rate for the MOE Tuition Fee Loan?

Accepted Answer

The MOE Tuition Fee Loan (TFL) charges a variable interest rate pegged at 0.25% above the prevailing CPF OA interest rate. As of 2024, this works out to approximately 5% per annum. Interest begins accruing from the date of each disbursement.

Question 2

What is the CPF Education Scheme interest rate?

Accepted Answer

When you withdraw CPF OA funds for education, you must repay the amount used plus 2.5% accrued interest (the CPF OA interest rate) back into your own CPF OA account. This is lower than the TFL rate but reduces your OA savings.

Question 3

Does using CPF for education affect my HDB loan eligibility?

Accepted Answer

Yes. Withdrawing CPF OA funds for education reduces your OA balance, which means less money available for your housing down payment and may affect the maximum HDB loan amount you qualify for. This is the key trade-off.

Question 4

Can I use both CPF and TFL to fund my studies?

Accepted Answer

Yes, you can use a combination. For example, you could pay part of the tuition with CPF OA savings and take a smaller TFL for the remainder. This lets you balance lower interest costs against preserving some CPF OA for housing.

Question 5

How long do I have to repay the MOE Tuition Fee Loan?

Accepted Answer

The standard repayment period for the MOE TFL is up to 20 years after graduation. Most borrowers aim to repay within 10 years. Repayment typically begins 1 year after graduation or upon termination of studies.

	MOE TFL (5% p.a.)	CPF Scheme (2.5% p.a.)
Amount Used	$40,000.00	$40,000.00
Owed at Graduation	$48,620.25	$44,152.52
Monthly Repayment	$515.69	$416.23
Total Paid	$61,883.18	$49,947.04
Total Interest	$21,883.18	$9,947.04
Impact on Housing	None	Reduces OA by $40,000.00

Study Loan vs CPF Education Scheme Singapore 2026

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