flaw in CPF education scheme

[AtheistcumCatholic]

I find that the CPF education scheme make no sense, it's applicable for fulltime students to withdraw their own CPF account. What about the part time students? They are not allow to do so according to the rules set by CPF board.

In the first place how the hell am I going to have moeny in my CPF account if I'm studying full time??

I do understand that the scheme allow you to use your parents/spouse or whatsoever CPF money to pay for your fulltime study. Then why in the first place you are allowed to withdraw from OWN CPF account?

It's obvious I plan to take up some part time studies using CPF education scheme.

I called CPF board, spoke to customer service personal. They say will revert back to me. Somebody called me from CPF Which she didn't give me a satisfied answer. I ask for that person name she didn't want to reveal. What the!? Poor services. She said that for withdrawing from own cpf is for those work part time then plan to study fulltime. Then i rebutted her, work part time got enough meh? She even agreed with me. Then she said that its for your saving blah blah and should not allow to withdraw. I ask her then why in the first place you have this scheme?

Anyway if I withdraw for my CPF. I would have to pay it back when the time comes. So what's wrong?

And she said nothing she could do.

Hopefully writing to forum could help me find me some answers.

 

[cHAmy27]

because CPF is gah men, money in gah men means gah men money to use
CPF is a investment firm in disguise
taking $20K out of cpf means less money for them to invest

So they will try any other way that you cant take out to use your money

Just like you need $120K min in CPF to retire and take out your money
Min $20K in your OA
The only way to take out all CPF money is to give up Singapore and never come back, aka blacklist

Not only that education in CPF can only be used in some schools, SIM i remember is not included.

Does it make sense that you have to loan from your parents cpf money (which is their money willing to part if they agree to) and pay back with interest back into their cpf?

Whatever money goes into cpf Must go back to gah men because thats the money they use to invest and return you the CPF annual interest rate.

So don't ever think of using gah men money

 

[Jarlaxle]

dun blame the ger working 8 to 5
shes not the policymaker
theres nothing that she can do...

altho, i do find the scheme to be rather silly as well

 

[cosycatus]

I find that the CPF education scheme make no sense, it's applicable for fulltime students to withdraw their own CPF account. What about the part time students? They are not allow to do so according to the rules set by CPF board.

In the first place how the hell am I going to have moeny in my CPF account if I'm studying full time??

I do understand that the scheme allow you to use your parents/spouse or whatsoever CPF money to pay for your fulltime study. Then why in the first place you are allowed to withdraw from OWN CPF account?

It's obvious I plan to take up some part time studies using CPF education scheme.

I called CPF board, spoke to customer service personal. They say will revert back to me. Somebody called me from CPF Which she didn't give me a satisfied answer. I ask for that person name she didn't want to reveal. What the!? Poor services. She said that for withdrawing from own cpf is for those work part time then plan to study fulltime. Then i rebutted her, work part time got enough meh? She even agreed with me. Then she said that its for your saving blah blah and should not allow to withdraw. I ask her then why in the first place you have this scheme?

Anyway if I withdraw for my CPF. I would have to pay it back when the time comes. So what's wrong?

And she said nothing she could do.

Hopefully writing to forum could help me find me some answers.

Oh well, live with it. Posting here will only get u crappy response such as that by chamy27.
I remember borrowing $$ from my sister's CPF account for my university studies. CPF actually started charging me interest from my first year of school whereas even commercial banks have the decency to start charging interest AFTER you graduate. The difference over 4 years was quite substantial i tell you. I wrote in a long letter to Today and straits times who do not dare to publish it ( fact it, CPF pays my sis 2.5%, so why is CPF charging prime interest at 4.5%? and other things questioning what CPF really means in essence, roles etc) and the response from CPF was in essence" it's policy, sorry, u sucker.. "

I mean, look at Australia where i am currently studying. There is a STARK difference between what locals and internationals pay. I really mean big difference, not that paltry kind of 2-3K u see for NUS/NTU which is a token sum. Even for local students, they have HECES government loans if they cannot cough up the cheap local fees.

I gave up 2 years of my time to protect the country. I seriously do not mind national service, but where is the gratitude?
Ask not what the country can do for you, but what you can do for the country is a famous saying. I've done my part for the country...but what has the country do for me??

A JB kia who comes to Singapore pays only a few k more in fees ( provided they sign some agreement to work for 3 years in Singapore, but seriously, which JB kia wouldn't? Earn 3k here go back become 8K), gets to work 2 years earlier then me, and i get only 3K off my annual income tax?

And when the common ground folks make noise, they retorted with a 9K recognition for the NSmen which GOES INTO YOUR CPF!! WTF. What use is 9K into CPF, it's just paper money. When u buy a house that currently stands at 500K, 9 K dun make a lot of difference. And this 9K is not retrospective, and gradually paid out. It's not even a 9K u can use for part time study...and this 9K will probably disappear into the minimum sum that get raised every few years.

But oh well, lives goes on. just vote wisely...( and for that , i dun mean voting dumbly into the opposition who for the most part are quite CMI)

 

[lzydata]

Wah TS, the way you talk/write is hard to understand. Maybe the CPF customer service officer was just confused

If I am right, you want to use your own CPF for part-time studies, but it's not allowed. You can use your own CPF for full-time studies at certain institutions only, but you point out that such people normally won't have much money in their own accounts to use.

3 relevant FAQs from the CPF website:

Q: Why are only subsidized courses by the approved institutions included under the CPF Education Scheme?

A: The CPF Education Scheme is a loan scheme and is meant for low income families to provide their children with a basic tertiary education. Only subsidised courses are included under this loan scheme. This is because the fees for such courses are significantly lower than unsubsidized courses as the fees are heavily subsidized by the Ministry of Education (MOE). Hence, member’s CPF savings for retirement is less likely to be jeopardized should the student be unable to repay the loan.

Q: Why doesn't the Education Scheme cover postgraduate courses?

A: Allowing CPF to be used for full-time studies in approved educational institutions was a special consideration made in 1989 to help low income families support themselves or their children through local tertiary education. Students who have graduated with basic tertiary qualifications have earning capabilities which enable them to build-up their savings for further studies. Universities also have various schemes, like the Tuition Fee Loan Scheme and Study Loan Scheme, to help students pay their tuition fees.

Q: Why does the Education Scheme cover only approved full-time subsidised courses?

A: The scheme is meant for full-time students in approved courses because these courses are subsidized by the government. Also, full-time students have no income and hence are likely to have difficulties paying their tuition fees with their own savings. Most of these are young adults going straight from school or national service to the universities, polytechnics or arts colleges.

Part-time courses are generally tailored for working adults who are in a better position to pay their tuition fees as they have incomes of their own. If they do not have sufficient savings for a part-time course, they can defer it and build up enough personal savings to pay for their course fees later. Part-time students can therefore plan ahead with greater flexibility to ensure that they can meet the tuition fees.

Seems like the policy was made to ensure people have a low-cost funding option for a basic tertiary education. Maybe a diploma holder works for a few years and then decides he wants to get a degree at a local university. Then it is not impossible that he has some of his own CPF to use before he uses his parents' or siblings'.

Personally I think it is OK to liberalize the scheme a bit and allow withdrawals for maybe one or two part-time courses or postgraduate courses per person depending on the institution and type of course. People may have to change careers more often now and besides part-time course fees are not that much compared to full-time ones. TS should write to CPF or talk to your MP. They will change the policy only if there are people asking them for it.

We should consider the flip side of allowing too many withdrawals for too many courses and institutions, which is that people will deplete their own and their relatives' CPF. The terms are generous and flexible enough that already about 5% of borrowers or around 7000+ people have defaulted. This will get worse.

For those who say, CPF is my own money and I should be allowed to spend it in whatever way I want - sure, in theory. Some people also want to use their CPF funds to invest or start a business, for example. But say that person is unlucky and/or unskillful and loses the money. Or he loves studying and takes 5 courses but his income never increases enough to let him pay back to CPF. Then he or his parents will not have enough for housing and retirement. If his relatives and friends cannot or will not help, then it becomes society's problem.

 

[lzydata]

Oh well, live with it. Posting here will only get u crappy response such as that by chamy27.
I remember borrowing $$ from my sister's CPF account for my university studies. CPF actually started charging me interest from my first year of school whereas even commercial banks have the decency to start charging interest AFTER you graduate. The difference over 4 years was quite substantial i tell you. I wrote in a long letter to Today and straits times who do not dare to publish it ( fact it, CPF pays my sis 2.5%, so why is CPF charging prime interest at 4.5%? and other things questioning what CPF really means in essence, roles etc) and the response from CPF was in essence" it's policy, sorry, u sucker.. "

I mean, look at Australia where i am currently studying. There is a STARK difference between what locals and internationals pay. I really mean big difference, not that paltry kind of 2-3K u see for NUS/NTU which is a token sum. Even for local students, they have HECES government loans if they cannot cough up the cheap local fees.

Not sure whether this was an earlier time when the policy was different, but the interest rate of my loan was the same as the CPF-OA rate, 2.5%. The point is to replenish the funds, so the interest over the 4 years of study is included.

Tuition fees at NUS/NTU for locals versus internationals have been steadily widening in recent years (NUS, NTU). For example, an arts course is now $7,170 for locals and $12,340 for international students.

 

[rnvstore]

Have a quick question here.
Can I use my CPF OA to fund my part time Msc course at NUS?

Does the OA only limited to full time Diploma/Degree course?

Hope any kind soul can enlighten me, thank you

 

[s0crates]

Cannot... Only can use for your first tertiary education , full time

Have a quick question here.
Can I use my CPF OA to fund my part time Msc course at NUS?

Does the OA only limited to full time Diploma/Degree course?

Hope any kind soul can enlighten me, thank you

 

[BBCWatcher]

Have a quick question here.
Can I use my CPF OA to fund my part time Msc course at NUS?

No, not directly. Per the CPF Board's explanation of the CPF Education Scheme:

Only full-time subsidised diploma/degree courses at Approved Educational Institutions (AEIs) are covered under this scheme.

(Emphasis mine.)

However, indirect uses are sometimes possible. Let's suppose you have a parent with Ordinary Account dollars and a reasonably well stocked Special Account, and let's also assume you have a grandparent age 65+ with a Retirement Account that has some top up room. Hypothetically your parent could transfer some Ordinary Account dollars to your grandparent's Retirement Account, your grandparent then receives a higher monthly retirement payout (classic Retirement Sum Scheme or CPF LIFE), and then your grandparent pays at least some of your tuition bill as a reward for boosting his/her retirement income. It's strictly an internal family arrangement and understanding. There is no contract or court that will enforce this arrangement, but it's allowed.

As another indirect example, your parent(s), uncle, grandparent, or older sibling could hypothetically use Ordinary Account dollars to buy a home (such as a "shoebox" private condo), rent it out, and use the net (after tax and expenses) rental income to pay your tuition bill.

I'm not necessarily recommending either of these options to "liberate" Ordinary Account dollars in a certain sense, but they are possible.

I should probably point out that TCC Credit Co-operative Limited offers education loans as low as 2.2% interest per annum. The 2.2% interest rate is achieved as long as all payments are made on time and the full loan is paid off within 24 months of the end of studies. That looks like a pretty good deal to me if you're going to pay it off within that deadline (and assuming the 2.2% p.a. interest rate is calculated on remaining principal, not starting principal), but please double check all its details. TCC doesn't seem to require full-time studies.

 

[lifeafter41]

TS should have borrow from the banks, then no such problem.

 

[rnvstore]

noted with thanks for the answer, so no choice need to consider self funded if want take part time course

 

[BBCWatcher]

noted with thanks for the answer, so no choice need to consider self funded if want take part time course

There may be some government money available such as the SkillsFuture Credit and SkillsFuture Study Award.

 

[Mecisteus]

noted with thanks for the answer, so no choice need to consider self funded if want take part time course

You can take interest free loan with CC for some schools.

https://www.simge.edu.sg/admissions/admin-matters/financial-matters/

When you charge above S$500 to your Citibank or OCBC Visa/MasterCard, you can enjoy interest-free instalments of six or 12-months. Terms and conditions apply. For more information, please call:

 

[henrylbh]

My Statement shows amount available for education $xxx,xxx which is more than enough for my kid's one year master degree in Cambridge, including all expenses. Yet I can't use a cent, but suck thumb