CPF Education Scheme for Part-time Diploma or Degree Courses at Approved Educational Institutions
Ministry of ManpowerSpeakers
Summary
This question concerns whether the CPF Education Scheme will be reviewed to cover part-time diploma or degree courses, as raised by Mr Muhamad Faisal Bin Abdul Manap. Minister Lim Swee Say explained that the scheme remains limited to full-time subsidised courses to ensure members retain sufficient savings for retirement given increasing life expectancy. He noted that while Ordinary Account savings can currently be used for full-time studies for members, spouses, or children, the Ministry must be cautious about expanding withdrawal options. For part-time degree students, alternative Tuition Fee and Study Loans are available to cover up to 100% of subsidised fees. Additionally, the Ministry of Education offers subsidies and bursaries for part-time diploma courses to support students requiring financial assistance.
Transcript
12 Mr Muhamad Faisal Bin Abdul Manap asked the Minister for Manpower whether the Ministry will review the CPF Education Scheme to allow it to be used for part-time diploma or degree courses at approved educational institutions.
Mr Lim Swee Say: The Central Provident Fund (CPF) is primarily for retirement. Monies in the Ordinary Account can be used for housing, and monies in the MediSave Account can be used for healthcare. We introduced the CPF Education Scheme in 1989. Under this scheme, members can use their CPF Ordinary Account savings to pay for their own, children's or spouse's subsidised tuition fees. Only full-time subsidised diploma or degree courses at Approved Educational Institutions are covered.
With increasing life expectancy, we need to make sure CPF members have set aside enough savings in their CPF account to meet their basic retirement needs. Hence, we need to be careful about expanding the use of CPF to allow for more withdrawals to be made, including to cover part-time diploma or degree courses.
Singaporeans who require financial assistance to pay for the tuition fees of their part-time degree courses can consider the Tuition Fee Loan which covers up to 90% of the tuition fees. Those who have taken the maximum Tuition Fee Loan and require further financial assistance can also consider the Study Loan. Together, the Tuition Fee Loan and the Study Loan will cover 100% of the subsidised tuition fees payable. The Ministry of Education also subsidises tuition fees for part-time diplomas and offers bursaries to students who require financial assistance.