I intend to take a loan to finance my education and I will repay it promptly upon my graduation. Which is better for me – the MOE Tuition Fee Loan (TFL) or CPF Education Loan?
The MOE Tuition Fee Loan (TFL) is a better option as it is interest-free during the course of study, unlike the CPF loan where interest starts to accrue from the time of withdrawal. This means that if you repay the loan fully right after graduation, you will not incur any interest at all for the MOE TFL. For scenarios comparing the two loans, please refer to the following document:
If you are unable to repay your MOE TFL due to further studies or financial difficulties due to unemployment or medical condition, you may appeal to defer repayment and interest. Your appeal will be considered on a case-by-case basis. While CPF may also allow for deferment in challenging times, the interest continues to accrue as it is essential to completely restore the savings meant primarily for retirement. For more information on the MOE TFL, please refer to this link.
