[You can read above to find out how InvestProperlyLah capitalised on the loan to make some gains at the same time! Interesting move.]
It is certainly no scam. I did a check at the DBS website and found more information: DBS Tuition Fee Loan. So indeed, you could take up an interest free loan for the duration of the course at a tertiary institute.
There are various conditions involved for sure. But it seems straightforward enough. It can fund 90% of subsidised course fees for university (or 75% for polytechnic). You just need a guarantor between the age of 21 to 60 who is an undischarged bankrupt.
It doesn't seem too difficult to take up. It's an alternative to drawing a loan from parent's CPF. By the way, you can do one or the other, but not both.
The loan can be repaid in a lump sum or in equal installments up to 20 years at a minimum of $100 per month, starting within 2 years from graduation. But if the loan is not repaid upon graduation, I think the interest will be hefty as it is pegged to the average prime rate of the 3 major banks.
[See http://www.turtleinvestor.net/cpf-and-4-room-hdb-my-true-story]
Looks like an alternative for my kids to consider, in time to come. And I can leave my CPF to continue clocking interest instead. So the education fund that I've been building up for them can remain invested until they graduate to pay off the loan.
2 comments:
Hey you linked me! It's not a scam for sure. Back then I took a loan to buy a laptop (even a crappy one cost me >$2k), AND I took a loan for my tuition fees, both from DBS Was hit with a prime rate of about 4.75% during repayment.
At least it is an option for families that can't cough up that much cash (my dad is self-employed which explains the lack of CPF funds).
Hi Turtle Investor,
Loans are a pain isn't it, because of the interest? That 4.75% interest must have been really painful. But agree it's a helping hand when cash is a tough going concern.
Great to have options.
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