Expansion of CPF Education Loan Scheme for Payment of Non-degree or Diploma Courses
Ministry of ManpowerSpeakers
Summary
This question concerns Assoc Prof Jamus Jerome Lim’s inquiry about expanding the CPF Education Loan Scheme to include non-degree certifications and courses from accredited foreign universities. Minister for Manpower Dr Tan See Leng stated that the scheme remains restricted to basic tertiary education at local approved institutions to prioritize members' retirement, healthcare, and housing needs. He explained that maintaining these limits ensures retirement adequacy as life expectancy increases, requiring students to repay loans in cash with interest to restore CPF savings. There are no plans to expand the scheme; instead, Singaporeans are encouraged to use bank loans or SkillsFuture subsidies for other training needs. SkillsFuture Singapore provides course fee subsidies of up to 70% for eligible training courses delivered by approved training providers.
Transcript
13 Assoc Prof Jamus Jerome Lim asked the Minister for Manpower (a) whether the Ministry will consider expanding the CPF Education Loan Scheme to fund certification courses that lead to formal certifications and qualifications which are not degrees and diplomas obtained from the current list of approved institutions; and (b) whether this can be extended to non-degree courses offered by accredited foreign universities.
Dr Tan See Leng: The primary purpose of CPF is to support members’ retirement, healthcare and housing needs. When the CPF was expanded to support education in 1989, it was designed as a loan scheme and confined to basic tertiary education at local approved educational institutions. After graduating or leaving their course of study, students have to repay in cash the amount withdrawn plus interest into the lender’s Ordinary Account so as to restore lenders’ CPF savings for their retirement needs. This cautious approach is to safeguard the primary purpose of CPF.
With increasing life expectancy, we need to ensure that CPF members have sufficient savings for retirement, healthcare and housing. Therefore, we have no plans to open up the CPF Education Loan Scheme for other courses beyond basic tertiary education at local approved educational institutions.
Singaporeans should consider other financing options available to members, such as study or education loans offered by financial institutions. For those who are interested in shorter training courses, SkillsFuture Singapore provides course fee subsidies of up to 70% for eligible courses delivered by approved training providers.