Scheduled Maintenance: CPF digital services will not be available on 3 Mar 2024, from 12am to 8am.

Your page is loading.
One moment please.

Why can't I use more Ordinary Account (OA) savings for my child's tertiary education?

CPF is primarily for members’ retirement needs. Hence, while members can take a loan from their CPF Ordinary Account (OA) for their own or immediate family’s education, there is a limit on the total amount that can be used.

You may wish to consider MOE’s Tuition Fee Loan (TFL) to finance your child’s education. The TFL is available to all full-time students of the polytechnics and universities and covers up to 75% and 90% of the tuition fees payable respectively. It is also interest-free during the course of study, unlike the CPF loan where interest starts to accrue from the time of withdrawal.

Additionally, being a loan from MOE, the TFL repayment and interest can be suspended in periods of economic downturn. For instance, MOE has suspended the TFL repayment and interest from 1 June 2020 to 30 September 2021 to support households affected by Covid-19, and had done so in the past as well. On the other hand, repayment of the CPF education loan and interest cannot be suspended as it is to restore the member’s CPF savings for his retirement needs, and retirement security remains important, if not more so, during economic downturns.

Your child can also approach his educational institution to find out about the other financial assistance schemes available.