Overseas Study Loans

To assist you in financing the cost of studying abroad, our researchers analyzed every study loan available to Singaporeans thinking to study abroad. When comparing these loans, we advise that you consider the total interest cost, various promotions, and payment structure to obtain the most affordable student loan.

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Our Top Choices for the Best Overseas Education Loans

Education loans comparison of costs A cost comparison of international loans for education is provided in the graph below. The chart displays the total cost of each loan, which includes all interest payments & processing fees. For comparison, we assume that a S$25,000 loan is taken out for six years and that monthly payments are made on time.

Cheapest Student Loan for International Studies: OCBC FRANK Education Loan

Consider this if you require an education loan for studying overseas

Early Repayment Fee 1% of loan prepaid
Late Payment Fee S$50
Age 17 & Above
OCBC FRANK Education Loan
Processing Fee 2.5%
Interest Rate 4.50%
Tenure 1-8 Years
Min Principal S$1,000
Max Principal S$150,000 or 10x monthly income of guarantor
Annual Income Requirement of Guarantor S$24,000

OCBC’s FRANK Education Loan, The cheapest education loan for students studying abroad, is also an excellent option for local students. The bank charges the lowest market interest rate of 4.5% and a reasonable fee of 2.5%. The study loan from OCBC is especially appealing to students from abroad, as it allows borrowers to obtain substantial loans up to S$150,000, or ten times their monthly income (or their guarantee).

Best Student Loan Promotion for Overseas Study: Maybank Education Loan

Consider this if you require an education loan for studying overseas

Early Repayment Fee 1% of loan prepaid
Late Payment Fee 3% min $30
Age 18 & Above
Maybank Education Loan
Processing Fee 2%
Interest Rate 4.45%
Tenure 1-8 Years
Min Principal Unknown
Max Principal S$200,000 or 8x monthly income of guarantor
Annual Income Requirement of Guarantor S$30,000
Promotional rates listed, available until April 30, 2020

The current promotion of Maybank’s education loan represents an excellent opportunity for all students. It is the best promotion available with a 4.45% p.a. interest rate and a fee for the processing of 2%. This is also an excellent choice for lenders who need huge loans because it allows students to loan up to $ 200,000 or 8 times the monthly income of their guarantor. This enables individuals to earn more than S$225,000 to obtain more outstanding Maybank loans than OCBC, which permits lenders to receive S$150,000 loans or 10 times their monthly revenue.

Best Interest-Only Student Loan: OCBC FRANK Education Loan – Graduated

Consider this if you require an education loan for studying overseas

Early Repayment Fee 1% of loan prepaid
Late Payment Fee S$50
Age 17 & Above
Loan of S$25,000 over 6 Years OCBC FRANK – Standard OCBC FRANK – Graduated OCBC FRANK – Graduated Plus
Monthly instalment During School S$397 S$94 S$94
Monthly instalment After School S$397 S$1,091 S$2,134
Total cost S$4,198 S$6,314 S$6,864

OCBC’s FRANK Education Loan is the most affordable. It offers the lowest 4.5% interest rate and a reasonable 2.5% handling fee. Furthermore, this period extends to 4 years only for interest purposes. OCBC has graduated from this reimbursement program. The Education Loan from OCBC FRANK includes an interest-only period of five years, including a Graduated Plus programme. Other terms and conditions are identical to our above mentioned standard payment option, apart from the payment method. Below is an illustration of how the stock option and interest-only vary in monthly payments and overall costs.

Honorable Mention: RHB Education Loan

Consider this if you require an education loan for studying overseas

Early Repayment Fee 1% of loan prepaid
Late Payment Fee 10.7% on overdue amount
Age 21-62 (at loan maturity)
RHB Education Loan
Processing Fee 2%
Interest Rate 4.88%
Tenure 1-8 Years
Min Principal S$5,000
Max Principal 4x monthly income, 6x monthly income or S$120,000 if annual income is greater than S$120,000 or net assets exceed S$2M
Annual Income Requirement of Guarantor S$30,000

While OCBC and Maybank are the best options for students looking for study loans in the outside world, RHB is another excellent option for students who need loans to fund education. For standard and interest-only loans, RHB offers the same low-interest rate and processing fee as Maybank. However, there are some reasons why Maybank loans are better than RHB loans. Maybank first offers large loans over RHB. It also provides loans for students who earn S$24,000 a year, which is less than the income requirement of RHB of S$30,000. This means that RHB can be an appropriate safeguard for creditors who cannot get loans from OCBC or Maybank.

Our Choices For The Best Education Loans for International Studies

There are two (2) general classes of education loans: standard payment & deferred payment. Traditional payment structures need students to make equal payments throughout the loan. On the other hand, first-interest (or interest-only) loans allow students to pay less in school. This is why, over the whole tenure of the loan, interest-only loans typically cost more.

Our Choices For The Best Standard Repayment Study Loans

Standard repayment education loans are a good choice for students with enough funds to make loan payments while still in school. These loans are generally more affordable over the long term than late-interest or early-interest loans. The table below highlights the cheaper education loans with standard repayment structures.

Education Loans – Standard Payment Processing Fee Interest Rate During School Interest Rate After School Monthly Instalment During School Monthly Instalment After School Total cost
CIMB Education Loan 2% 5.39% 5.39% S$407 S$407 S$4,816
OCBC FRANK Education Loan 2.5% 4.50% 4.50% S$397 S$397 S$4,198
POSB Further Study Assist 3% 5.88% 5.88% S$413 S$413 S$5,479
Maybank Education Loan – Overseas Studies 2% 4.45% 4.45% S$396 S$396 S$3,532
RHB Education Loan – Overseas 2% 4.88% 4.88% S$401 S$401 S$4,389
Assuming 6-year loan of S$25,000

Best Interest-Only Education Loan for Studying Abroad/ Overseas

While some students will pay off their loans while studying, many will not handle the financial burden until after they finish their studies. Students who would prefer to make fewer repayments during school have “interest-only” loans that allow them only to pay interest until they’ve completed their studies. Still, this does need borrowers to pay more over the lifetime of their loans. Below are the best choices for interest-first loans for studying overseas. The table below assumes a loan of S$25,000 over a six-year tenure with a 4-year interest-only period.

Education Loans – Interest Servicing Processing Fee Interest Rate During School Interest Rate After School Monthly Instalment During School Monthly Instalment After School Total cost
CIMB Education Loan – Interest Servicing Repayment 2% 5.99% 5.39% S$125 S$1,101 S$7,918
OCBC FRANK Education Loan – Graduated 2.5% 4.50% 4.50% S$94 S$1,091 S$6,314
OCBC FRANK Education Loan – Graduated Plus 2.5% 4.50% 4.50% S$94 S$2,134 S$6,864
RHB Education Loan – Graduated 2% 4.88% 4.88% S$102 S$1,094 S$6,644
RHB Education Loan – Deferred 2% 4.88% 4.88% S$0 S$1,324 S$7,278

But it isn’t always easy to make that life-changing decision. Those who want to study abroad, but find it challenging to raise funds, now have the option of arranging for their education to be paid for by their funds.

Every aspect of education is covered in this article, whether it’s the process of applying for a loan, eligibility, or documents required for it. Also, we’ll talk about Indian banks that offer student loans and the role of the guarantor. They will cover every aspect of obtaining an education loan to study abroad.

Loans for Study Abroad are available to US citizens who are planning to study abroad. To be eligible, students must be enrolled in an approved school in the United States and earning credit there. Before departing for your host country, your US school will disburse the funds directly to you.

For international students from around the world who want to study in America, the International Student Loan Program is a great option. It would also help if you had a cosigner who is either a US citizen or a US permanent resident.

Loans for international students are disbursed directly to you at competitive interest rates.

As a result of this partnership, IEFA can offer students worldwide various options for financing their education abroad.

You can find the only loan comparison tool designed specifically for international students on this site.

Using the comparison tool above, you can see what options are available to you. International students have access to several lenders, and you will add more as time goes on, so start your search today!

During the pandemic, millions of Americans benefited from student loan debt relief. The Federal Reserve has set student loan interest rates at 0% since March 27, 2020, and payments have been paused until the end of the year.

But the policy is set to expire on October 1, 2021, and many borrowers are still struggling financially.

There are no federal protections for private student loans, and the contract determines the consequences of missing a payment. If you miss a federal student loan payment, the results often follow a typical pattern.

Missing payments on federal student loans result in the following:

After graduation

Repayment of federal student loans begins upon graduation or leaving school. Most borrowers of federal student loans are given a grace period, however.

There is a six-month grace period for Direct Subsidized, Direct Unsubsidized, and Federal Family Education Loans.

In addition, borrowers with Perkins Loans have a grace period of nine months.

Upon the expiration of the grace period, borrowers are expected to make regular payments following the repayment plan they selected during the application.

15 days after payment is due

“There is usually a 15-day grace period for federal student loans,” says Persis Yu, director of NCLC’s Student Loan Borrower Assistance Project. There are few consequences if you are less than 15 days late on a federal student loan payment.

A borrower’s loan will be considered delinquent if they have not made a payment by the end of the grace period. This can have long-term consequences, such as making it more challenging to buy a home or a car. When an employer runs a credit check, a bad credit rating can also affect job opportunities.

It takes time to get back on your feet, but you still have time. As long as you’re willing to make a payment, you can get back on track.” A little later on, terrible things begin to happen.

270 days after payment is due

As of 270 days after the due date, federal student loans are deemed in default. Upon defaulting on federal student loans, the government can seize borrowers’ wages, Social Security checks, tax refunds, and disability benefits. As well as losing their driver’s licenses, borrowers with defaulted student loans may also lose their professional licenses in certain states.

A court order is required before private lenders can garnish your wages. Director of federal advocacy and senior counsel of the Center for Responsible Lending, Ashley Harrington, says, “The Department of Education doesn’t have to do this.” Thirty days before the garnishment is to begin, they have to send you a notice and allow for an appeal. 

According to Yu, “the federal government has extraordinary collection powers” under the umbrella of “the Debt Collection Improvement Act.” “The most common form of collection is the seizure of tax refunds.” They typically take 15% of Social Security benefits or wages when they are garnished, but they seize the entire amount for tax refunds.

Families and children can be adversely affected by garnishing tax refunds such as the Earned Income Tax Credit.

Research has shown that the Earned Income Tax Credit (EITC) is the most effective anti-poverty measure we have in the United States, Yu says. As a result, taking this money has intergenerational impacts.

There is another option for those who are behind on payments: “Post-270 Day Forbearance,” in which the delinquency can be wiped out “retroactively,” Yu says. You have to communicate with your servicer and fill out a form.”

One year after payment is due

According to Harrington, federal student loans are often transferred to default collection agencies when the borrower has not made a payment in more than 12 months.

In some cases, the Department of Education works with third-party collection agencies that will charge you penalties and fees if you don’t make a payment.

It’s around this time that the impact of a default on a borrower’s credit would be significant, says Harrington. Collection agencies “harass folks with calls and texts,” which can add to the mental stress of the debt, she says. Your credit score is affected by defaulted loans, and you may have difficulty obtaining credit in the future. Then, your life becomes even more difficult.”

This is the time to reach out to your lender to see if you qualify for an economic hardship deferment or if you can switch to a repayment plan that works better for you. In the end, she says, some borrowers have no choice but to accept their loans.

If you do not pay your federal student loans and fall into default or delinquency, the results can be devastating.” Harrington: “There are consequences that can make your life harder in numerous ways. Some people are struggling, and student loan payments are a part of that. They have to pay rent; there’s a pandemic going on, there are job losses, there’s underemployment, there are child care needs. Student loan borrowers also have to deal with a variety of other issues.

“And the lights need to be kept on.”

As Yu points out, federal student loans have no statute of limitations. In other words, the consequences can last for a very long time.

Your monthly living costs and other expenses will require all the financial support you can get, even if your tuition is free or low.

There are many different types of financial aid available, but scholarships are the most common and well-known. Let’s find out what they are and how you can use them.

Merit-based scholarships (fellowships)

Academic performance, achievements, hobbies, talents, affiliations with various groups, and career aspirations are among the criteria used to award merit-based scholarships. In addition to the federal and state governments, large corporations and local businesses can also offer these scholarships and professional organizations and universities.

To be eligible for a scholarship, you must meet specific requirements.

Scholarships offered by universities

Typically, university scholarships are awarded based on academic merit and age (for example, under 35 years of age). A different set of scholarships is available at each level, depending on the level of study.

It’s not uncommon to find more Ph.D. scholarships available in Switzerland than Bachelor’s or Master’s degree scholarships.

The scholarship can cover accommodation costs and health insurance at some international universities.

Stipendium in Sweden can cover tuition, living expenses, travel expenses, and insurance, depending on the organization that offers them and the type of stipend.

Scholarship holders in France receive a monthly allowance, and the scholarship also covers other expenses such as a round-trip ticket, health insurance, and cultural activities. It does not cover tuition fees, which are already low.

Scholarships offered by the government

Tuition fees are generally waived for scholarship recipients. In most cases, these scholarships are awarded for a period of three to nine months.

These are some of the mandatory requirements to receive this type of scholarship:

Sports scholarships

Your college or university may offer you a scholarship for sports participation. The good news is that you don’t have to be very good at the sport you practice to participate in it.

Local groups or other organizations sometimes offer these sports scholarships, and they usually look at criteria such as community service and other such factors.

American universities offer scholarships to international students.

As an alternative for those who want to defer their student loans as long as possible, many banks offer interest-only study loans. In other words, the borrower only has to pay back interest on a student loan until their studies are complete (usually about four years). While in school, people may not have the money to pay back much in the way of monthly payments, but this option allows them to focus on their studies and worry about debt repayment after they graduate and find jobs. As a result, the borrower pays more over time.

 

Interest-free During Studies

DBS Study Loan

Studies

Local

Interest Rate (p.a.)

4.38%

Processing Fee (approved loan)

2.5%

Per Month

S$371.77

 

POSB Further Study Assist

Studies

Local

Interest Rate (p.a.)

4.38%

Processing Fee (approved loan)

2.5%

Per Month

S$371.77

 

OCBC FRANK Education Loan

Studies

Local

Interest Rate (p.a.)

4.5%

Processing Fee (approved loan)

 

2.5%

Per Month

S$372.86

 

Maybank Monthly Rest Education Loan (Local)

Studies

Local

Interest Rate (p.a.)

4.45%

Processing Fee (approved loan)

2%

Per Month

S$372.41

 

Maybank Monthly Rest Education Loan (Overseas)

Studies

Overseas

Interest Rate (p.a.)

4.45%

Processing Fee (approved loan)

1.5%

Per Month

S$372.41

 

CIMB Monthly Rest Education Loan (Local)

Studies

Local

Interest Rate (p.a.)

5.39%

Processing Fee (approved loan)

2%

Per Month

S$381.01

 

CIMB Monthly Rest Education Loan (Overseas)

Studies

Overseas

Interest Rate (p.a.)

5.39%

Processing Fee (approved loan)

2%

Per Month

S$381.01

 

Choosing between a standard payment and a deferred payment loan structure can be an excellent place to start. For those who have actual savings or financial help, traditional repayment education loans make sense. In the short term, these loans are more expensive, but in the long run, they are more affordable.

According to a new report, thousands of students worldwide move to Singapore each year to pursue a better education. If so, would you like to study in one of Singapore’s universities? Your education will be of the highest quality, and you will secure a job in the country after graduation. In many countries, including Singapore, the cost of education is high. Thanks to the government for finding ways to ensure that students complete their education to the level they want to achieve.

You can apply for loans to help pay for your education through a loan system that the government has set up. As well as covering tuition, these loans can also be used to cover other educational costs, if necessary. What if you’re a student from another country? Such loans are only available to those who meet specific criteria. Yes, you certainly can.

What you need to know to get a study loan in Singapore;

To receive the credit, you must first be eligible (s)

In comparison with citizens, international students may find it challenging to obtain a loan, but it is still possible. To determine if you are eligible, you should review the eligibility criteria. As a primary requirement, age must be taken into account. Age is a requirement for obtaining loans. The government has set rules for banks and universities to follow when offering loans to international students, and these rules are now in effect. What qualifies you to include the following factors.

  • The participant must be 21 years of age or older. All students in Singapore are subject to this age limit. Unless you meet this requirement, you will never be eligible to borrow money as a foreign national.
  • For a loan, you’ll need two sponsors. Someone other, such as a close relative or a family member, can sponsor you. To qualify as a sponsor, a person must meet the following requirements:
  • This means he must earn between $12,000 and $30,000. Banks and universities will present their income ranges within the range. Similarly, if you are the sponsor, you should have a per-capital income.
  • Considering that loans are not a gift and must be paid back, a lender will only extend credit because you provide the name of a person who you can reach if you default. Your guarantor must have a minimum annual income of $30000 to qualify.
  • If you are a foreigner taking out a loan for educational purposes, you must not be bankrupt. Among other documents, these may include academic papers such as transcripts, proof of residence, and acceptance letters from universities.

Know the lenders

Student visa applicants in Singapore should know which approved lenders they can approach for these loans. An estimated $80000 or more is needed to complete a 4-year degree program. Students from other countries may find it difficult to obtain loans and find out where they can bring them. As a result, this article provides you with the names of banks that will provide you with the necessary financial support. These banks include; POSB, DBS, OCBC, CIMB banks, and May Bank. Each of these banks offers different types of student loans. Check with them what kind of loans you’re interested in obtaining before applying.

A large number of universities offer student loans in addition to banks. SMU also offers study loans, tuition fee loans, and central provident fund loans. Student loans are available from the National Institute of Education (NIE), especially for those pursuing a teaching degree. If you would like to study more about the loan programs offered by these universities, please visit their respective websites.

What types of loans can you obtain?  

Depending on your needs as an international student in Singapore, you can choose from various types of loans available. The following are a few examples;

  • Monthly Mortgage-Basically, this is a loan without a fixed rate of interest attached. An alternative method is determining monthly loan repayment balances and interest rates based on the remaining credits after each loan repayment. These are the rates and standards that the lenders decide on.
  • Flat rate loans-Loans with fixed interest rates, as their names suggest. Starting with the total loan amount, lenders determine the interest rates.
  • Long-term loan- only full-time students are eligible for this loan. It is a loan that is used to cover your student tuition fee. You can only get this loan upon the provision of a guarantor.
  • Loans without interests-After your education, you don’t have to pay any interest on these loans. Some universities have arranged with banks to obtain them at a reasonable cost. Such loans may be available from the university where you plan to enroll.
  • Emergency loans are concise termsand cover unexpected expenses such as trips you need to undertake daily costs of living and even monthly fees. They vary from one institution to another. Check if your university offers such loans.

These loans will help you as a Singaporean student. As long as you make good use of these resources, your education in the United States will be very successful. Do you need to be concerned about your school fees and other educational expenses as an international student? Not to worry. How to get a study loan in Singapore has been explained in this guide? Take action, and don’t put off completing your education because of money concerns! Singapore has you covered in every way.

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FR Capital is a Singapore consultancy firm that helps SMEs to secure business loans from banks and financial institutions. We concentrate on SME finance, and through our expertise and network, we help clients secure funding with low-interest rates efficiently and hassle-free.