Consider the POSB Further Study Assist to finance your dream of getting a degree.
By Everlyn Lee
As the adage goes, “it is never too old to learn,” and Yue Li Li is the perfect example of a Singaporean who embraces this spirit of lifelong learning. Li Li, currently 38 years old, may be older than many of her peers who are pursuing a Bachelor’s degree, but that did not deter her from going back to school.
In response to the Government’s call for skills upgrading, Li Li, under the encouragements of her supervisors, enrolled in Kaplan Singapore this year to pursue a part-time Bachelor of Science degree programme in Management that will be awarded by the National University of Ireland, Dublin. She has been working tirelessly in the Movement for the Intellectually Disabled of Singapore (MINDS) for the past ten years and currently holds the position of a clerical officer within the organisation. A degree, she hopes, will open doors for career advancement in the future.
A boost to education
Following the attainment of a diploma at the age of 31 from PSB Academy, Li Li had gone back to the same school again just two years ago to obtain an advanced diploma in Human Resource Management. Having to juggle her time between school, work and family commitments the past few years has taught Li Li how to manage her time well. Hence she was certain that she can handle the workload for the degree programme.
At the top of Li Li’s worries was, instead, her inability to finance her further studies as the tuition fees are beyond what she could comfortably afford. “The tuition fees are higher than the course fees that I have previously paid to obtain my diploma and advanced diploma. I could not have financed it with my own pay,” Li Li says. POSB Further Study Assist, as recommended by the institution, was the quick answer to her financial woes.
POSB Further Study Assist is a scheme introduced by DBS/POSB to provide education loans for Singaporeans or Permanent Residents between 17 to 50 years old who are keen on furthering their education with one of its partner institutions. This scheme has recently been extended to include not only students enrolled in established local institutions such as National University of Singapore, Nanyang Technological University, Singapore Management University and Singapore Institute of Management, but also students enrolled in renowned Australian universities such as Monash University and The University of New South Wales to ease their heavy financial burden.
The approved loan amount could be up to six times the applicant’s monthly income or the unpaid course fees, capped at S$80,000, whichever is lower. If the applicant does not earn a minimum gross annual income of S$12,000 or is below the age of 21, he or she requires a guarantor.
The loan will be disbursed in the form of a cashier’s order either in one lump sum or progressively and is repayable over one to five years through fixed monthly instalments. Repayment commences the following month once the loan is approved and the cashier’s order disbursed. No prepayment penalty is imposed, however, if one chooses to pay off his or her loan earlier to save on interest.
Li Li applied for the loan as a single applicant and obtained a loan amount sufficient to cover more than two-third of her total tuition fees. The remaining amount, according to her, will be financed using her salary and savings so as to minimise the amount of interest payable. Li Li has opted for the loan to be disbursed progressively, and each disbursement is to be made before payment for the next school term is due. She intends to pay off her loan once she has advanced in her career.
The interest rate stands at 5.88% per annum as of date of writing on a monthly reducing basis. However, students enrolled in Singapore Management University and Singapore Institute of Management enjoy a promotional rate of 5.25% per annum.
Li Li acknowledges that the interest rate is slightly higher than that of the other banks, but she remains comfortable in securing a loan from DBS/POSB. “POSB is reputable, stable and strongly supported by the government. I feel that this is important especially in the midst of the financial crisis,” Li Li justifies.
Interested applicants can download the application form from the DBS/POSB website and submit the completed form together with the necessary documents to any DBS or POSB branch. The documents will be verified and processed, and once the loan is approved, the applicant will be notified via SMS and by post. The entire process took Li Li about two weeks. “The application process was easy, and I got a very fast response from the bank,” she says.
“With an education loan at hand, I no longer have to worry about monetary issues. I can now focus on the pursuit of my degree and study with a peace of mind,” Li Li smiles.