Can I Use My CPF To Pay For My Child’s University Or Poly School Fees?

Parents want the best for their children. This is why they want to enroll their children in the best poly school or universities. We all know that Singapore has one of the best education systems in the world.

It is because Singaporean students achieve top positions in the majority of international contests. Singaporean universities are also counted in the top hundred universities in the world.

Having the best educational system in the world means that the fees of the best universities or poly school fees in Singapore is quite expensive as well. This is why parents with a low salary cannot afford to send their children to the best universities and schools. This is why they have to send their kids to other affordable schools and universities. But, this problem can now be solved if you are a member of the Central Provident Fund or CPF, which most working adults are.

For those of you who do not know much about CPF, how it operates, or how can you use CPF to pay for your child’s university or poly school fees, let us enlighten you on the topic. So, keep on reading and find out everything that you need to know.

What Is CPF?

CPF is a social security saving system that is funded by both the employers and the employees. This initiative was introduced by the government to meet the retirement, housing, and medical needs of the employees in Singapore.

It is a mandatory saving scheme which means that every employee is required to maintain their own CPF account with regular contributions from their employers and themselves as well.  The government also keeps on making contributions to the CPF accounts of lower-wage workers through the introduction of many schemes and top-ups. 

Read: Increased support for lower wage and senior workers

Can You Pay For Your Child’s University Or Poly School Fees Through CPF?

For the parents who are a part of the CPF program, there is good news for you! Even if you cannot afford to pay your child’s tuition fees for the best universities and poly schools, CPF provides you with the best solution. Now you can use CPF’s education scheme to pay your child’s fees for the best and expensive schools and universities present in the country.

So, if you are also interested in paying for your child’s education fees through CPF, you need to understand certain aspects of it. This is necessary to obtain the maximum benefits from your CPF account. A lot of people do not have the basic knowledge related to it and this is why they cannot utilize the account to its fullest. So, keep on reading to find out all the aspects related to CPF and how you can use it to pay for your child’s tuition fees.

What Is The Eligibility Criteria For Using The Education Scheme?

Certain requirements need to be fulfilled if you want to make your child eligible for the education scheme of CPF. Let’s check them out below.

1. The Funds Requirement

The most basic requirement for you to benefit from the CPF education scheme is that you should have enough funds present in your ordinary CPF account. In this way, you will be able to transfer these funds from your ordinary account to the education funds. Therefore, if you want to pay your child’s education fees through the education scheme of CPF, you must have enough funds present in your default CPF account.

2. The Beneficiary Requirement

This is another aspect that needs to be taken proper care of. If you want to take advantage of the CPF education scheme, the beneficiaries should be you, your spouse, or your child. Although it is possible to pay for the tuition fees of your parents, siblings, and relatives through CPF education funds, you will be required to obtain permission from the authorities. The board will review your request and once you get the permission, then only will you be able to pay the tuition fees of anyone other than yourself, your spouse, or your child.

3. The Course Requirement

The course requirement is also one of the aspects that need to be looked into before applying for the CPF education scheme. To pay your child’s education fees trough CPF, your child must be enrolled in a full-time course. Part-time courses are not eligible for this education scheme.

4. Enrollment Requirement

Anyone who is looking to benefit from the CPF education scheme must be enrolled in any one of the approved educational institutions that have a partnership with CPF. So, if your child is not enrolled in the institutions partnered with CPF, they will not be able to benefit from this education scheme.

5. Tuition Grant Requirement

The beneficiary from the CPF education scheme must also be a beneficiary of government tuition grants. Without this, your child will not be eligible to have their tuition fees paid from the CPF education scheme. So, if you want to pay your child’s fees through this education scheme, they must be receiving the government’s tuition grant as well.

6. Withdrawal Requirement

If you are wondering whether there is a limit to funds that you can utilize from your CPF account to pay for the tuition fees of your child, then yes, there is definitely a limit. You cannot use all of your money present in your CPF account to pay the tuition fees. There is a withdrawal limit for every CPF account holder. The withdrawal requirement is 40% of your total savings or your current ordinary account balance.

7. Relative Or Siblings Withdrawal Requirement

Although you can pay the full fees within the available withdrawal requirement for yourself, your child, or your spouse, there are certain limits when it comes to the payment of the fees of your siblings or other relatives through your CPF account. If they are admitted to an arts college, they can use up to 50% of the funds from the withdrawal limit. If they want to pursue a technical degree, they can use up to 25% of the funds from the available limit, and if they are enrolled at an approved university, they can only utilize 10% of the funds from the limit.

How To Apply For It?

The application procedure of the CPF education scheme will be different according to different educational institutions. But, some common procedures are the same for everyone. Let’s check them out below.

a. If you have a CPF account, you can go to the CPF website and apply to pay for your child’s education through your CPF account

b. An online notice will be sent to you for the approval of the use of your CPF funds as the tuition fees of your child

c. You will have a limit of fourteen days to approve or reject the online notice that will be sent to you

d. Once you have approved the notice, your child’s tuition fees will be paid through your CPF account.

How To Calculate Cumulative Savings Of Your CPF Funds?

If you want to pay your child’s tuition fees through your cumulative fees, then you will be required to calculate the amount of your total savings first. To calculate your cumulative savings, you will need to add the balance of your ordinary account and the amount that you have withdrawn up till now.

However, if you have withdrawn any amount from your CPF account to use on any property, this amount shall not be added while calculating your cumulative savings to pay for the tuition fees of your child.

Is The Interest Rate High?

If you are hesitant to use the CPF education scheme to pay your child’s tuition fees because of higher interest rates, then you do not need to worry about it. CPF charges a very low-interest rate from their account holders. This interest rate is lower than any other educational loan available in the country.

Can We Use More Than One CPF Account To Pay For The Fees?

Sometimes one CPF account is not enough to pay for your child’s education fees. But, there is good news for you! Now you and your spouse both can use their CPF account to pay for your child’s tuition fees. If both accounts are used and there are still some fees left to be unpaid, your child can even apply for a loan for their tuition fees.

What Is The Repayment Process?

Another huge advantage of using the CPF education scheme for your child’s university or poly school tuition fees is that your child will start repaying it immediately after graduating. Even if they withdraw from the university or school in the middle of their education, they will still have to pay you back for the money you have invested in their education.

Even though parents want their children to have the best education in the world, not all parents can afford to send them to expensive universities and poly schools. This is where CPF accounts come to your rescue!

You can now use your CPF accounts to pay for the tuition fees of your children at the lowest possible rates. The eligibility criteria are very basic and simple as well. Your child will return this amount once they graduate from their school or university. So, it is a win-win for all!