Tertiary Study Loans

Ms Low Yen Ling asked the Minister for Education in the last five years (a) what was the total number of students who have taken out study loans to finance their tertiary education in public and private institutions; (b) what was the total loan quantum; and (c) what was the default rate of these study loans.

The Minister of State for Education (Mr Lawrence Wong) (for the Minister for Education): Mr Speaker, Sir, I thank the Member for the question. From 2006 to 2010, about one-third of undergraduates and 5% of Diploma students from our publicly-funded institutions tapped on Government-funded loan schemes to finance their studies.

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The Government provides loans for these students through two schemes. First, a Tuition Fee Loan, which covers up to 90% of the fees payable by a Singapore student at the undergraduate level, and 75% at the diploma level.

Second, a means-tested Study Loan, which covers the portion of fees not covered by the Tuition Fee Loan, in other words, up to 10% of the fees at the undergraduate level and 25% at the diploma level, and also provides an amount for living expenses.

On average, over the last five years, the overall amount taken out in new loans was around $100 million a year. And from an individual student perspective, the actual loan amount will typically vary according to the course fees payable as well as the availability of other sources of financing, such as Government bursaries.

The default rate for these loans has remained low. Non-performing loans are less than 1% of the total outstanding loan amount. MOE does not track the number of students in private institutions who take up education loans.