Consequences of Rising Tuition Fees

About Tuition Fees

Calculating the costs of tuition fees are crucial in planning ahead into future education. With NTU tuition fees as an example, subsidised programs (for Singaporeans) are estimated to cost $25,000 to $30,000 for most programmes excluding accountancy, business courses, medicine and engineering programmes. 

To understand more about tuition fees, the following article will explain all about the effects of rising tuition fees (both for tuition centres and university), as well as the schemes that you can apply for to save costs!

For more information about Secondary School PSEA accounts or general tuition fees costs, refer to the articles linked above. 

What are the Effects of Rising Tuition Fees in Singapore? 

With recent events such as rising interest rates and inflation hitting rates of 5.7%, prices of goods and services are rising across the board. This includes the rise of prices from a simple meal in a coffee shop to tuition fees by tuition centres and universities. 

The effects of rising tuition fees are borne by families in the form of financial burden, particularly those with lower incomes. This could limit access to education or force certain families to make sacrifices in other areas to afford education and supplementary lessons. 

For students, this can also be a problem as higher tuition fees lead to an increase in student loans and debts. Students may have to borrow more to finance their education, and it could take them longer to repay these loans, impacting their financial well-being and delaying other life goals such as homeownership or starting a family.

Needless to say, other effects exist too such as shifts in educational priorities towards courses that pay more, increased competition for scholarships and a range of financial considerations.

How are Tuition Rates for University charged in Singapore?

Tuition fees for local universities differ depending on which university and course chosen. 

Of the Big 3, NUS and NTU Tuition Fees are charged at a range from $24 000 to $30 000, SMU Tuition fees are slightly more costly at $34 500. 

How Does Tuition Fee Loan Works?

In summary, most universities charge per semester. Through signing a loan with a recognised bank such as DBS, these fees will be automatically paid by the bank until graduation. 

Based on the rules of the loan, the loan will cover the difference between the amount of tuition fee payable by Singaporeans for the same programme and the maximum sum allowed under the respective loan and/or subsidy schemes under the university’s Tuition Fee Loan Scheme, the CPF Education Scheme, the Mendaki Scheme and/or any other organizations registered with a government agency.

Repayment

Having a plan early will be effective as it will be easier to figure out how much is needed to repay the debt. 

For the DBS tuition loan, the loan will be interest bearing upon graduation, and it allows for a maximum repayment period of 20 years.

The Study Loan may be repaid by instalments after your graduation. Repayment details will be made available at the time when you sign the Loan Agreement.

Financial Assistance Schemes from local Singapore Universities 

Refer to the following list for financial assistance schemes that you may find to be available in your respective universities, or schools. 

1. Bursary 
2. Tuition Fee Loan 
3. Study loan
4. CPF Education Scheme 
5. Post Secondary Education Account 
6. Overseas Student Programme Loan 
7. Student Loan 
8. Work Study Programme 
9. Emergency Grants