By The Ledger desk · Last verified 11 October 2026
The two classic MOE loans for local undergraduates, the Tuition Fee Loan and the Study Loan, have been merged, with the Overseas Student Programme Loan, into the new Higher Education Student Loan (HESL) from mid-2026. HESL lends Singapore Citizens up to 90% of subsidised tuition (PRs 65%) with no income test, plus means-tested help for the last 10% and a living allowance of up to S$4,100 a year. It is interest-free while you study; afterwards interest is 3-month compounded SORA plus 1.5 percentage points. The CPF Education Scheme lets students use up to 40% of their own, a parent’s or a spouse’s Ordinary Account for tuition, repaid in cash with CPF interest within 12 years.
A degree is a big investment, and Singapore offers several kind ways to spread the cost. Here is how they fit together.
Quick facts
- HESL replaces the Tuition Fee Loan, Study Loan and Overseas Student Programme Loan for new applications from mid-2026.
- Students already on a Tuition Fee Loan or Study Loan keep their existing loans.
- HESL means-tested parts need a per capita household income of S$3,500 or less for citizens and PRs.
- HESL is administered by OCBC, applied for through the StudentLoan SG portal with Singpass, and needs a guarantor aged 21 to 60.
- CPF Education Scheme: tuition only, up to 40% of available OA savings, repayment starts within one year of graduating.
- None of these loans covers miscellaneous or hostel fees.
HESL at a glance
| Component | How much | Who qualifies |
|---|---|---|
| Tuition (base) | Up to 90% (citizens), 65% (PRs), 45% (international students) of subsidised tuition | All eligible full-time undergraduates, no income test |
| Balance fee | The remaining 10% of subsidised tuition | Citizens, per capita household income S$3,500 or less |
| Living allowance | Up to S$4,100 per academic year | Means-tested |
| Overseas programme | Up to S$12,000, once | Citizens, means-tested |
As published by SMU for 2026: interest starts on graduation, rates are revised every six months, and the loan must be repaid within 10 years. Leaving the course early makes the whole balance due at once. Universities may show slightly different start dates, so check your own institution’s financial aid page.
The CPF Education Scheme
The scheme pays subsidised tuition fees for full-time citizen and PR students at approved local institutions. You can draw on your own CPF, or a parent’s or spouse’s. The amount is capped at 40% of the Ordinary Account savings (excluding money already withdrawn for housing) and never more than the tuition fee. The student repays the full amount in cash, plus interest at the prevailing CPF rate, back into the account it came from. Repayments start no later than one year after graduation, over up to 12 years, with a minimum of S$100 a month. Apply on the CPF website in each semester’s window.
Worked example: mixing the options
Say Jun’s subsidised tuition is S$10,000 a year for four years (check your course’s actual fee). His household per capita income is above S$3,500.
- HESL base loan: 90% × S$10,000 = S$9,000 a year; over four years, S$36,000.
- The other S$1,000 a year comes from his Post-Secondary Education Account, CPF or family savings.
- If his mother has S$60,000 in her OA, 40% is S$24,000, enough to cover the gap or replace part of the loan.
- Repaying S$36,000 over 10 years is S$300 a month before interest; repaying S$4,000 of CPF over 12 years would be under S$28 a month, but the S$100 minimum applies.
The CPF route charges your family’s CPF rate rather than a bank-linked rate, and the interest goes back into a parent’s retirement savings instead of to a lender.
The WahLiao Verdict
Use grants, bursaries and the Post-Secondary Education Account first, then the CPF Education Scheme if a parent has room and is comfortable, then HESL for the rest. Borrow only what you need; a smaller loan means freedom earlier in your career. Talk honestly as a family about who repays what, write it down, and set up the repayment plan the month you start work.
Questions people ask
I already have a Tuition Fee Loan. What happens now?
Your existing loan continues. If you apply for new HESL components, future disbursements move to HESL, and you repay both after graduating.
Can CPF repayments be made with CPF?
No. Money used under the CPF Education Scheme must be repaid in cash.
Does HESL cover hostel fees?
Not directly, but the means-tested living allowance of up to S$4,100 a year can help with daily costs.
Is a guarantor always needed?
For HESL, yes: a guarantor aged 21 to 60 who is not an undischarged bankrupt, and a Singaporean if the student is Singaporean.
Sources: Singapore Management University, Higher Education Student Loan details; Nanyang Technological University, Tuition Fee Loan and transition to HESL; National University of Singapore, CPF Education Loan Scheme. The Ledger explains; it does not advise.
Read next: School Fees in Singapore 2026: Primary, Secondary and Miscellaneous Fees · CPF Accounts Explained: Ordinary, Special, MediSave and Retirement · Back to The Ledger
For what’s worth it this week, with the bill shown, read The WahLiao Week.
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