Full-time Undergraduates on Study Loans under MOE Tuition Grant Scheme and Interest Charged

Ms He Ting Ru asked the Minister for Education in each year of the last 10 years (a) how many full-time students in diploma or undergraduate courses in the Institutes of Higher Learning have taken up study loans under the MOE Tuition Grant Scheme; (b) what is the average interest rate these students are being charged to service their loans; (c) how many students are in arrears; and (d) what assistance has been rendered to those in arrears.

Over the last 10 years, about 18,800 or 30% of undergraduates and 2,300 or 3% of diploma students from our publicly-funded institutions tapped on Government loans to finance their tertiary studies each year.

These Government loans are interest-free during the course of study, with interest commencing upon the borrower's graduation or leaving the institution. The interest rate for existing loans is pegged to the average prime lending rate of DBS, OCBC and UOB and is currently 4.75% per annum.

As at September 2023, about 500 loans – or 2.6% of total number of outstanding loans due for repayment – have arrears of three months or more. Borrowers who face difficulty in servicing their loan repayments can make an appeal to defer their loan repayment. MOE will review the appeals on a case-by-case basis.