KiasuParents - Parenting in Singapore

Can anybody kind enough to explain how does this Study Loan Interest Free for Local University/Poly works....

Thank you in Advance...

dolphinsiah wrote:Can anybody kind enough to explain how does this Study Loan Interest Free for Local University/Poly works....

Thank you in Advance...

What I know is that the loan is interest free during the years that the student is studying. The interest will kick in at the point when the student graduates.
So for a student who needs help financially this will really help fund the studies and upon graduation slowly pay back the loan (the interest starts at point of graduation).
But I do know of people who have the means for the fees still taking the loan but pay off the loan immediately upon graduation. I guess this makes a difference if the interest in savings is more. However in today's low interest environment, it doesn't really matter.

At the end of the day, it is important to read the fine print prior to taking up the loan. Just my 2 cents.

It just meant during the course of study. No interest will be charge. After Graduation interest would starts in about 1 month's time.

And to add onto what wiimum said, when choosing your institution, make sure it's on the banks' list of approved educational institutions. That's one of the criteria you have to meet for dbs' education loan and also your study period cannot exceed 5 years. If not the interest starts.