Why do you need an education loan in Singapore ? Facts about education loan

Posted by SharonEvans on November 20th, 2014

Trying to put your child through the best education in Singapore can be quite a headache if you start calculating the costs of higher education. Till higher secondary education the costs are still manageable if you pay less heed to the accompanying social factors and don’t end up enrolling your child to private tuitions. Else, you need to be ready to take an education loan in Singapore quite early in life. Depending on what level of education your child is in, the lifestyle they maintain and the kind of accommodation, food and transportation they require, the requirement for an education loan will vary. Thanks to the tuition grants given out by the Singapore Ministry of Education, the costs come down to quite an extent.

Life begins at 4

Cultural competitiveness is a big thing for the parents in Singapore. They will initiate their child’s education (inclusive of formal training and other forms of cultural training) as soon as their child turns 4. As we know, the education system in Singapore is quite well structured. Kids are sent for private tuitions to excel in every subject. This is where the cost rises and there comes in a need to apply for an education loan in Singapore. Otherwise, the Government has subsidized the rates to quite an extent.

According to a recent study conducted in the Internet about the cost of education in Singapore, it was seen that the total expenditures borne by parents for educating their child starting from nursery, straight to University comes to a figure that has the ability to sponsor three world trips. Amazing stuff, isn’t it?

Why do you need education loan in Singapore?

Parents must spend on childcare centres, nurseries, private tuitions, kindergarten, extracurricular activities during the first 8 years of the child starting from age 4 to age 12. The requirement of education loan is apparent with an official figure that says close to 97 per cent children receive private tuition in the country. This is enough to stretch the budgets for the parents.

So, why let all the worries of education expenses rattle your minds when there is a simple solution available right in front of you – apply for an education loan.

If you can manage the expenses till PSLE or Primary School Leaving examination, the next 12 years is where your child will need a support of an education loan in Singapore if you want good education for them. On an average, Diplomas can cost around S$10 – 15000 for a 1-2 years course. For 2-4 years Bachelors programme it is S$25 – 35000 and a Masters programme is S$ 20-30000. You need to add the cost of living to that, which can add another S$ 10-24,000 per year.

The reason behind discussing these figures is not to scare you. It is to show you an easier and better way to provide decent and quality education to your child – education loan. Taking an education loan in Singapore is not difficult. Your child’s academic records will be required to apply for a loan. Apart from that a few formalities - and you are through. Every loan provider has their own set of rules and procedures which you need to study well and then get started with it.

Taking an education loan in Singapore is required for providing a decent education to your kid and so education loan will give you the financial freedom to offer that.