How To Repay CPF Education Loan: A Comprehensive Guide To Giro And One-Off Methods In Singapore
September 11, 2023
Congratulations on your achievement! After several years of diligent effort and unwavering commitment, you have the educational credentials to initiate your professional career.
If you took out a student loan to finance your education, you may now face the problem of paying off that debt. This article will assist you in how to repay CPF education loan.
What Is An Educational Loan?
Before we understand how you can repay a CPF education loan, it is crucial to understand what an education loan means.
An educational loan is a sum of money one borrows to pay for higher education or other post-secondary training. Borrowers can use education loans to pay for things like books, tuition, and everyday costs pertaining to school.
Modes Of Repayment
The education loan repayment must be in cash, either through a single payment or monthly instalments over a maximum duration of 12 years. You can determine an affordable plan to pay back your CPF education loan using the Monthly Instalment Rate Calculator and the Repayment Period Calculator.
The principal objective of the CPF system is to establish a solid financial footing for Singaporean individuals during their retirement period.
Over time, the program has gone through changes to provide Singaporean individuals. It offers extraordinary adaptability in utilising its CPF funds to acquire residential properties and fund higher education.
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You can make repayments using GIRO or any other repayment methods that CPF Board modes authorise. You can either pay in a single lump sum payment or equal monthly instalments.
What Is GIRO Repayment?
The GIRO system entails a formal agreement between an individual and their financial institution, whereby the bank has permission to initiate direct payments to a particular billing organisation to settle any overdue invoices.
GIRO can be either of two types:
- The GIRO direct debit system enables a billing organisation to initiate debits from a specified bank account to facilitate regular bill payments.
- Certain financial institutions offer GIRO-on-demand services, wherein customers must provide explicit authorisation for each GIRO payment via telephone or online platforms.
GIRO repayment is the most convenient and advantageous way of paying payback for monthly instalments since it facilitates automatic regular automatic deduction of the appropriate amount. There are two available methods for submitting a GIRO application:
- Online submission
- Submission via mail
Online My CPF
For you to apply online, which most people highly recommend, you should follow the following steps:
- To access the cpf.gov.sg website, sign in Singpass using your credentials for authentication.
- Proceed to the ‘My Requests’ section.
- Submit your GIRO application.
Submission Via Post/Mail
Please download and fill out the FORM EDN/GIRO: Repay Education Loan Using GIRO. The document is available in PDF format and has a file size of 0.4 MB.
Afterward, mail the document to the location indicated on the reverse side of the GIRO application form.
Online applications are highly advisable due to their prompt processing capabilities. It is essential to take note of the specific application period for utilising CPF funds under the CPF Education Loan Scheme, as it varies according to the academic calendar of each respective educational institution.
After sending the application online, the CPF member will receive an email and have 14 days to authorise using their CPF savings by logging into the CPF website.
To access the status of the GIRO application, users must first log in to the CPF website using their Singpass credentials. The relevant information may be accessible under the ‘My Activities status.’
Making a lump sum repayment using the online platform available at cpf.gov.sg through the e-Cashier payment service is advisable.
Note On Partial Repayment
You must be aware that even if you choose to make a partial repayment in the form of a lump amount, you will still keep making your payment commitments. This ensures you do not fall behind on your monthly instalment and satisfy the payment responsibilities.
To guarantee adequate processing time, please ensure that your repayment for the requisite month occurs no later than three business days before the close of the month.
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Students should make efforts to promptly repay their loans to minimise the interest that will accumulate. They can do this by making lump sum repayments or by standard monthly payments.
To determine how long it will take them to return the loan or to devise an appropriate loan repayment schedule, students can utilise the CPF education loan payback calculator.