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Written Answer by Mr Lim Swee Say Minister for Manpower to Parliamentary Question on repayment of loans under CPF Education Scheme

Employment practices

NOTICE PAPER NO. 757 OF 2017 FOR THE SITTING ON 1 AUGUST 2017

QUESTION NO. 1310 FOR ORAL ANSWER

MP: Mr Zainal Sapari

To ask the Minister for Manpower (a) in the last three years, what is the number of CPF account holders who have taken loans under the CPF Education Scheme to help their children pay for their tuition fees at approved educational institutions; (b) what is the percentage of these CPF account holders who have had their loans paid back by their children; and (c) whether the Government can consider allowing the children to redeem such loans through deductions from the children's CPF savings.

Answer

  1. The CPF Education Scheme is a loan scheme for CPF members to support their own, spouses’, or children’s full-time subsidised tertiary education at local Approved Educational Institutions.
  2. From 2014 to 2016, about 30,000 CPF members have successfully applied for loans under the CPF Education Scheme to pay for their children’s tuition fees. Over the same period, about 98% of outstanding loans due for repayment were fully settled.
  3. Mr Sapari asked whether children can repay the outstanding education loan using their CPF savings instead of cash. This is not allowed as they need to build up their CPF savings for other uses such as housing, healthcare and retirement.
  4. We recognise that some students may find it difficult to repay the loan immediately after graduation. Hence, students are only required to start repaying the loan one year upon graduation or after leaving their course of study. This gives them some time to find a job before starting repayments. Students who face difficulty repaying the full loan amount can apply for deferment or choose to make payments via monthly instalments for up to 12 years.