Comparison of MOE Tuition Fee Loan and CPF Education Loan Scheme

This document is a comparison report between the MOE Tuition Fee Loan and the CPF Education Loan Scheme, focusing on two scenarios involving different educational paths. The first scenario examines a three-year diploma course with total tuition fees of approximately $9,000, detailing the loan quantum, interest rates, and repayment terms for both loan options. It highlights that the MOE Tuition Fee Loan has an interest rate of 4.75% per annum and is interest-free during the course of study, while the CPF Education Loan has a lower interest rate of 2.5% per annum but begins accruing interest immediately. The second scenario analyzes a three-year university degree course with total fees around $21,000, again comparing the two loan schemes under similar conditions. The report concludes that depending on the repayment period, either loan can be more cost-effective, illustrating the importance of understanding loan terms and conditions before making a decision.