facebookIs anyone else part of the CPF Education Scheme? Would you advise paying the amount all at one shot or by monthly instalments? - Seedly

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Anonymous

21 Oct 2019

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CPF

Is anyone else part of the CPF Education Scheme? Would you advise paying the amount all at one shot or by monthly instalments?

Monthly instalment would be $100/month with 3% interest per annum. The alternative would be paying 4k as a lump sum.

Discussion (9)

What are your thoughts?

I paid it off using my PSEA account, worth giving a call to find out how much you have in there!

Alvin Teo

Alvin Teo

20 Oct 2019

Aviva Relationship Consultant at Aviva Affinity Channel

If can pay off lump sum.

If no money, borrow from parents to pay a lump sum and pay them back, hopefully, they don’t charge you interest.

Would say that if you can afford it, to pay off the amount in one lump sum. This will prevent the accrual of interest and once you have cleared this off, going forward, you won't have to put aside money each month to clear your loan and is free to put your money into better use, to either save the money and build your emergency funds, or to invest it. The best thing is, you won't have to think about the loan anymore!

Leslie Koh

Leslie Koh

20 Oct 2019

Associate Financial Services Manager at Prudential Assurance Company Singapore

Pay off the lump sum, IF you can afford it.
No point paying extra interest.

The faster you pay off, the money gets back into your parents CPF account which in turn will grow at the prevailing CPF rates.

I would recommend lump sum, I used to pay 100$ monthly and that was because i couldnt pay it in full...

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