Should I be using my PSEA funds for the payment of my university tuition fees, or should I make use of the interest free loans?

I’m currently taking an interest free loan.

I’ll recommend you to take advantage of it instead of using your PSEA fund. This way, you can make use of the interest free 30-40k (suppose u have that amt saved) during your course of study through deposition into a decent interest rate bank acct and investments, and earn interest from the PSEA fund at the same time.

Your PSEA money earns interest similar to OA account.

If you want to 'hack' ways to pay least interest, then I think you can pay with PSEA, then invest your cash (reasonable to achieve 2.5%). Or if possible, request to use your parents' CPF for education loan.

If you want a simple and hassle free way then you can just go with interest free loans. Thought it is important to note that 'interest-free' is only for a period (usually studying period) and there is still interest payable.