Studying in Singapore is one dream for many individuals. It is a country that has many reputable universities. It is considered as a favored destination for many students seeking for education, and many individuals love it.
If you are looking to enroll in a public or private university in Singapore, this place is probably among the best in the world, and that means that every person should enjoy what they can experience with it.
Since education is a primary concern of most individuals, it is also a primary concern for those who wants to get it but are not financially capable of doing so.
What Is The Problem?
The problem is this: not every person in Singapore can step up the process towards quality education because the educational system is quite an expensive feat.
There are a lot of parents who are wishes to send their children to universities located in Singapore but cannot do so. In Singapore, even the local public university would require a whopping 5-figure amount to get a university degree, and we haven’t include other cost such as transportation and books.
What Is The Solution?
Gladly, the government stepped in and allowed these students to generate and cater to students who have no idea how they can afford the fees.
The solutions include the following:
- There is always an offer of financial assistance coming from schools that aim to help students with the huge amount of living expenses, books, and tuition fees.
- There is a set of requirements that every education institution has for them to address their own enrollment requirements for the scholarships.
For those who are ineligible, the alternative is to try and access the loans from financial institutions that could give you the loan you require.
Getting Eligible For Loans
How does one get eligible for loans? There are a few things that people should know when they are applying for a student loan in Singapore, and they are the following:
- Your Age Eligibility Begins At The Age Of 21.
There are so many people who would want to get started with their career, but they fail to qualify because of age. Most educational loans from banks and financial institutions are between the ages of 21 to 60 years.
This rule has been set because banks often need the assurance that the borrower will be able to pay them back once they get the job. If they are younger than 21 years of age, there should be a guarantor who is required and responsible.
Who should be your guarantor? You should get someone who is financially stable enough to help you but who is also qualified to get you what you need. He can be:
- A parent;
- A guardian;
- A spouse;
- A sibling; or
- A relative.
Other than the age requirement, your potential eligible guarantor should have a minimum income based on what is set by the law. His annual income should be at least SGD 24,000.
- There are also income requirements that you should comply with.
Most banks pay a lot of attention to annual income. Income is what assures banks that you are able to pay off the loan you took from them. If you enroll in a part-time course, you need to have a minimum income of SGD 18,000 to qualify for an educational loan. This means that at any given point, you should still be able to pay part of the loan.
If you cannot fully qualify with this, you can always comply with the income requirements with the help of a guarantor.
- How much should be your loan principal?
There are a few rules about this that every borrower must know. First, banks in Singapore allow a potential borrower to borrow money up to eight times their monthly salary, but this has changed through time, so it is better to know more about this and research on it.
A perfect example would be at the instance of the loan principal of say up to SGD 40,000, if you earn SGD 5,000 per month, you can qualify for a loan of this amount.
- What about the interest rate?
The interest rate is a different thing altogether. It is important for you to research on this matter because it varies a lot. There are some flat rates, and there are also some very intriguing flexible rate that may make or break the deal.
- What about the processing fees?
Processing fees are a different species altogether. Banks have specific requirements and techniques to lure students into applying for loans from their banks by reducing the interest rate, but the processing fee is high. This part can get tricky, so it is important to make sure that you know about the processing fees and how much they are really worth.
- What is the repayment method?
The repayment method is another one of those things that vary. What are the ways? They are the following:
- You can pay in monthly installments on the loan interest and principal.
- You can decide to sign and pay once you complete schooling and is already earning more.
- You can also decide to pay it in periods.
Student Loans: A Reality Of Life
The best part about Singapore is the fact that they have existing student loans. Some Asian countries do not have the same level of care to give to their students and have no student loans available. The reality is that it is only in Singapore that people can avail of a lot of perks and different loans that can help them achieve their goals. While it may cost an arm and a leg to get a good education, at least you are sure that it is good.