KEY HIGHLIGHTS
- The CPF Education Loan Scheme allows CPF OA savings to be used for tuition fees at approved local institutions.
- Loans attract 2.5% accrued interest from the point of withdrawal and must be repaid in cash within 12 years.
- Students and parents should review withdrawal limits and compare options before applying in 2026.
The CPF Education Loan Scheme remains a key financing option for local tertiary education in 2026, especially as tuition fees and living costs continue to rise in Singapore.
This guide explains how the scheme works, who qualifies, and the long-term impact on housing and retirement savings.
CPF Education Loan Overview (2026)
| Item | Details |
|---|---|
| Eligible Institutions | Local universities, polytechnics, NAFA, LASALLE |
| Who Can Use CPF | Self, children, spouse, siblings |
| CPF Account Used | Ordinary Account (OA) |
| Maximum Usage | Up to 40% of OA savings (withdrawal limit) |
| Interest Rate | 2.5% p.a. (accrued) |
| Repayment Start | 1 year after graduation or course exit |
| Maximum Repayment Period | Up to 12 years |
| Repayment Method | Cash only |
What Is the CPF Education Loan Scheme?
The scheme allows a CPF member to use their Ordinary Account (OA) savings to pay tuition fees only at approved local institutions.
It is a loan, not a subsidy. Any amount withdrawn must be fully repaid to CPF with accrued interest to restore retirement savings.
Eligibility Criteria in 2026
Student Requirements
The student must be enrolled in a full-time, government-subsidised diploma or degree programme at an approved institution, including:
- Local autonomous universities
- Local polytechnics
- NAFA and LASALLE (degree programmes only)
Private universities and part-time courses are generally not covered.
CPF Member Requirements
- Must have sufficient OA savings
- Can only use the Available Withdrawal Limit, capped at 40% of accumulated OA savings
- Prior education or housing withdrawals count toward this limit
What the Loan Can Be Used For
- Covers up to 100% of tuition fees
- Paid directly to the institution
- Cannot be used for accommodation, laptops, or miscellaneous fees
Interest and Accrued Interest Explained
The loan interest rate follows the CPF OA rate of 2.5% per annum.
Accrued interest starts from the date funds are withdrawn, not from graduation. This reflects the interest your OA savings would have earned if left untouched.
In a high-cost environment like 2026, accrued interest can add a significant long-term repayment cost if left unmanaged.
CPF Education Loan vs MOE Tuition Fee Loan
| Feature | CPF Education Loan | MOE Tuition Fee Loan |
|---|---|---|
| Interest During Study | Accrued from Day 1 | Interest-free |
| Interest After Graduation | 2.5% p.a. | Bank prime-based |
| Repayment Start | 1 year after graduation | 2 years after graduation |
| Repayment Tenure | Up to 12 years | Up to 20 years |
| Guarantor Required | No | Yes |
Key takeaway: Many families prioritise the MOE Tuition Fee Loan first, using CPF only if there is a funding gap.
How to Apply in 2026
- Check OA withdrawal limit via CPF portal
- Student submits application online using Singpass
- CPF member authorises the request digitally
- Funds are credited directly to the institution
Application windows are typically aligned with school intake periods.
Repayment Rules You Must Know
- Repayment starts 1 year after graduation or course exit
- Must be made in cash (CPF cannot be used)
- Monthly instalments or lump-sum payments allowed
- Maximum repayment period is 12 years
Repayment waivers are only considered under strict CPF Board conditions, such as meeting retirement sums at age 55.
Why This Matters in 2026
Using CPF for education directly affects housing affordability and retirement adequacy.
For parents approaching 55, withdrawals can reduce progress toward the Basic Retirement Sum (BRS). For younger families, it may limit future HDB or private property financing.
Early or voluntary repayments can significantly reduce accrued interest and long-term impact.
Frequently Asked Questions
Can CPF be used for private university degrees?
Generally no. Only approved, government-subsidised programmes qualify.
What if the student drops out?
Repayment still begins 1 year after leaving the course, including accrued interest.
Can siblings use their CPF for my education?
Yes, subject to withdrawal limits and approval.
Will the interest rate change in 2026?
The OA rate is reviewed quarterly. Always check CPF updates before applying.
How can I estimate repayments?
Use the CPF Education Monthly Instalment Calculator on the CPF website.
Final Considerations
The CPF Education Loan Scheme ensures access to local education without immediate cash strain, but it comes with long-term trade-offs.
Before committing, review bursaries, grants, and MOE loans. If CPF is necessary, plan repayments early to protect housing options and retirement security.
