CPF FOR TERTIARY EDUCATION (Repayments)

CPF FOR TERTIARY EDUCATION

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(Repayments): **

6.

Mdm Cynthia Phua asked the Minister for Manpower whether his Ministry will allow students, who used their parents' Central Provident Fund (CPF) for their tertiary education, to make repayments when they are working by deducting from their CPF accounts instead of having to pay cash.

Dr Ng Eng Hen: The Member's proposal to allow the student to use his CPF savings to repay the loan when he starts working would be tantamount to allowing him to make premature withdrawals from his CPF. This will compromise his own retirement adequacy in the long term.

In recognition of the difficulty some students may face in repaying the loan immediately after graduation, repayment of the loan commences only one year after the student graduates or leaves the course. This gives him sufficient time to find a job. He is also given up to 12 years to repay the loan. This makes repayment affordable. The CPF Board will also consider deferment of payments on a case-to-case basis, such as when the student is serving NS, returns to full-time study, or is unemployed.

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