Written Answer to PQ on Expanding CPF Education Loan

NOTICE PAPER NO. 2250 OF 2023 FOR THE SITTING ON OR AFTER 4 OCTOBER 2023
QUESTION NO. 5198 FOR ORAL ANSWER

MP: Assoc Prof Jamus Jerome Lim

To ask the Minister for Manpower (a) whether the Ministry will consider expanding the CPF Education Loan Scheme to fund certification courses that lead to formal certifications and qualifications which are not degrees and diplomas obtained from the current list of approved institutions; and (b) whether this can be extended to non-degree courses offered by accredited foreign universities.

Answer:

1. The primary purpose of CPF is to support members’ retirement, healthcare, and housing needs. When the CPF was expanded to support education in 1989, it was designed as a loan scheme and confined to basic tertiary education at local approved educational institutions. After graduating or leaving their course of study, students have to repay in cash the amount withdrawn plus interest into the lender’s Ordinary Account so as to restore lenders’ CPF savings for their retirement needs. This cautious approach is to safeguard the primary purpose of CPF.

2. With increasing life expectancy, we need to ensure that CPF members have sufficient savings for retirement, healthcare and housing. Therefore, we have no plans to open up the CPF Education Loan Scheme for other courses beyond basic tertiary education at local approved educational institutions.

3. Singaporeans should consider other financing options available to members, such as study or education loans offered by financial institutions. For those who are interested in shorter training courses, SkillsFuture Singapore provides course fee subsidies of up to 70 percent for eligible courses delivered by approved training providers.