SIT Study Loan Review: Subsidised Tuition Fee and Living Allowance Coverage

Are you a student of the Singapore Institute of Technology (SIT)? You could get assistance for tuition fee coverage and/or coverage for living expenses through their Study Loan. You can receive a loan which may cover up to 90% of the tuition fees equivalent to the course fees payable by a Singapore citizen. You may also be eligible for a maximum living allowance of S$3,600 p.a. for the duration of your study.

You can use this study loan for payment of tuition fees only if you have also applied for the Tuition Fee Loan (TFL) offered by the Government of Singapore.

Will You Be Considered for This Loan?

You’ll be considered for this loan if:

  • You’re a citizen or PR of Singapore and you’re a full-time student of this institute.
  • You’re an international student receiving Tuition Grant from the Ministry of Education (MOE).
  • A PR or citizen of Singapore with non-accredited diplomas or A-level certification will be considered if:
    • He/she needs top-up or bridging courses/modules while pursuing an undergraduate study programme.
  • You have applied for one or both of the following:
    • A loan, tuition fee subsidy, or some form of assistance from an agency registered with the government.
    • TFL.
  • The quantum of such an assistance is no less than 80%/90% of the tuition fees payable by a Singaporean for the study programme of your choice.
  • The gross monthly per capita income of your family (PCI) doesn’t exceed S$2,700.

Do You Need a Guarantor? What Are the Eligibility Requirements for Him/Her?

Yes, to apply for this loan, you’ll need a guarantor. A guarantor must fulfil the following conditions:

  • He/she should be aged between 21 years and 60 years.
  • He/she shouldn’t be an undischarged bankrupt.
  • He/she mustn’t be an existing guarantor for more than 2 student loans at the same time.

There are some restrictions on the nationality of a guarantor, too. They are as follows:

  • If you’re a Singaporean, your guarantor must also be a Singaporean.
  • If you’re a permanent resident (PR) in the country, your guarantor could be a Singaporean or PR.
  • If you’re an international student, your guarantor could be of any nationality.

How Much You Can Borrow – An Overview

The loan quantum will be as follows:

  • If you’re a full-time student of SIT who meets the eligibility criteria, you’ll get:
    • A living allowance of S$3,600 every year until the end of the course AND
    • A loan that covers up to 10% of the tuition fees that will be charged by SIT for a bona fide citizen of the country.
  • If you’re someone who needs bridging/top-up modules, you’ll be given a loan that covers:
    • 2.5% of the unsubsidised fees charged for such additional modules AND
    • A living allowance of up to S$3,600 p.a.
  • If you have received the MENDAKI Tertiary Tuition Fee Subsidy and the SIT Study Loan, you’ll be eligible for the living allowance component only. You won’t receive coverage for your course fees. The maximum quantum of the loan won’t exceed S$3,600 p.a.
  • If you have received assistance through the CPF Education Scheme or a combination of this scheme and TFL, you’ll get living allowance only.
  • The maximum this loan will offer is 20% of the subsidised course fees payable by a Singaporean and a maximum living allowance of S$3,600 p.a.
  • The maximum assistance you receive for coverage of tuition fees through this study loan, TFL, or any other loan can’t exceed 100% of the value.

Will You Be Charged an Interest for This Loan?

Depending on the following factors, your loan could be interest-free or interest-bearing:

  • If you’re a Singaporean or PR with a gross monthly household income (PCI) below S$950, you’ll be charged no interest.
  • If you’re a Singaporean or PR with a PCI exceeding S$950 but not exceeding S$2,700, you’ll be charged interest.
  • If you’re an international student with a PCI less than or equal to S$1,200, you’ll be charged interest.
  • Interest, where applicable, will start accruing from the first day of the third calendar month after your graduation or withdrawal from the course. This condition is also applicable to graduates and withdrawn students for whom National Service (NS) duties are still due.
  • The rate applicable on this loan will be an average of the prevailing prime lending rates of DBS, OCBC, and UOB. The rate will be computed on the first day of each quarter.
  • For late payments or instalment payments in arrears, a penalty interest of 1% per month will be levied.

How Long Can You Stretch Loan Payment?

Depending on whether your study loan is interest-bearing or interest-free, the following tenures are available:

  • The maximum tenure is 5 years if the interest on the loan is waived off.
  • The maximum tenure is 20 years if the interest on the loan is not waived off.

All You Need to Know About Loan Repayments

In order to repay your loan, you must keep the following things in mind:

  • Each monthly instalment has to be settled on the first day of a month.
  • You’ll enjoy two repayment options as follows:
    • You can settle the loan dues in one lump sum.
    • You can settle the loan dues in monthly instalments. Payment must begin within 6 months from the time you graduate or land a job, whichever is earlier.
  • The monthly instalment amount can’t be less than S$100.
  • If you withdraw from a study programme offered by SIT prematurely, you’ll have to settle the outstanding balance immediately and in full.

Have Unutilised Funds in Your PSEA? You Can Use It to Repay This Study Loan

If you have funds unused and lying in your Post-Secondary Education Account or PSEA, you can use it to repay SIT Study Loan dues, subject to certain conditions. They are as follows:

  • You’re a bona fide owner of a Post-Secondary Education Account.
  • You’re using funds from your own PSEA to repay the loan dues.
  • You have already graduated successfully from SIT.
  • You’re using your PSEA monies to repay the loan principal and interest charges on the loan or associated finance schemes.

To utilise funds in your PSEA for loan repayment, download a Loan Repayment Application form from the MOE website. You have to submit the completed form directly at the ministry. The minimum withdrawal amount stands at S$100.

Things You Should Know About the Application Procedure

To apply, you’ll have to do the following:

  • Log into the student portal on the SIT website. You’ll be able to access the application form through this portal.
  • You can complete and submit the form online. You’ll also have to upload supporting documents for the evaluation of income eligibility.
  • If your application is accepted, you’ll be notified of it via email. You can then proceed to download the approval letter and the loan agreement from the student portal.
  • You’ll have to carry copies of these documents to the loan issuing bank for further processing of your loan. Your guarantor must accompany you to the bank.
  • After that, you’ll have to log in to the portal on the SIT website to update the status of loan form submission.

Other Factors That Might Affect Loan Application and Disbursal

Approval, disbursal, and validity of this study loan will depend on the following factors:

  • Disbursement of the loan funds will be subject to:
    • Confirmation of your fulfilment of the Tuition Grant (TG) eligibility conditions AND
    • Approval from the participating bank.
  • If the government subsequently determines that you aren’t eligible for TG, your study loan agreement will be revoked. Monies disbursed, if any, will have to be repaid immediately.
  • Are you eligible for the government-sponsored Tuition Grant? If yes, your loan amount will be the total fees for each qualified semester minus the assistance offered through TG.
  • Other terms and conditions may also apply.

Check the SIT website for loan application and related dates.Nothing should take away the right to quality education from you. Do you wish to get enrolled in an SIT-offered education programme but can’t due to lack of funds? If you’re eligible, the SIT Study Loan can help you transform your dream into a reality.

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