Singapore is a small island, although the population is increasing, as of r2018, there are about 5.66 millions in Singapore.
Currently there are 6 university in Singapore (https://en.wikipedia.org/wiki/List_of_universities_in_Singapore)
Education can be a very cost investment in Singapore especailly when 2 out of the 6 university in Singapore hit top 10 in Asia Pacific.
Normally, graduate students pay for tuition fee more than undergraduate. Therefore, the main purpose of graduate loans is to help fund their education.
There are two types in which graduate students can obtain graduate loans: the government and private entities, (who provide alternative graduate loans).
Each of these is discussed in more detail below.
1. Graduate Loans
This type of loan is the same as undergraduate loan. The only difference is name.
Graduate loans are available to any graduate student regardless of their financial situation. Two types of Stafford graduate loans exist: subsidized and unsubsidized.
The difference in the two lies in who pays the interest.
Graduate loan is available to students who demonstrate financial hardship.
The purpose of the Student Loan is to assist full-time undergraduates should they meet with financial difficulties during the programme of study.
Who is eligible?
- For financially needy full-time undergraduates in all years of study except in their final semester.
- To consider applying for other loans / awards before applying for this loan.
- Up to S$2,000.
- Limited to one loan during his/her course of study.
- One guarantor aged 21 to 60 years (based on the guarantor’s age at the point of application), and not an un-discharged bankrupt.
- A loan applicant who is a:
- Singaporean student to provide a Singaporean guarantor.
- Singapore Permanent Resident and International students to provide a Singaporean/Singapore Permanent Resident guarantor.
- The guarantor must be gainfully employed.
- A student who satisfies (1) and (2) may also act as a guarantor. However, a student who is holding Tuition Fee Loan/ loan from CPF Education Scheme or any other form of loan should not stand as guarantor.
- If the application for the Student Loan is successful, the applicant and guarantor have to be both present at University to sign the loan agreement.
Another type of student loan
Who is eligible?
- All undergraduates who are under the Tuition Grant Scheme and full fee paying Singapore Citizens and SPRs are eligible for the Study Loan if assessed to be eligible.
- 5th Year undergraduate students taking Double-Degree Programmes
- Undergraduate students reading the iBLOC modules and Special Term modules (only tuition fee portion is applicable).
Part-time undergraduates who are Singapore Citizens and eligible to apply for the Study Loan will not be offered the living allowance loan.
Repayment commences 6 months after graduation or upon securing employment, whichever is earlier.
Repayment can be in one lump sum or in fixed equal monthly installments (minimum of $100 per month).
The maximum repayment period is up to 5 years for interest free loans and up to 20 years for interest bearing loans.
Interest computation for interest bearing loans is deferred until after graduation based on the average prime rate of local banks.
- A guarantor is required. He or she must be between 21 and 60 years old and is not a bankrupt.
- Only Singapore Citizen guarantors are acceptable for Singapore Citizen students;
- Singaporean/SPR guarantors are acceptable for SPR students
- Singaporean/SPR/non-Singaporean guarantors are acceptable for international students
Alternate Graduate Loans
This loan has also been known as private graduate loans, are loans funded by non-governmental entities.
Companies offering these loans could be banks, credit card agencies or any other enterprise interested in helping graduate students secure student loans.
You can first try to visit websites of all the major banks because many do offer student loans services. Or you can use a search engine by typing the name of banks you know.
Some banks will even offer graduate loan comparison charts to help their customers see how their loans stack up against the competitors.
These charts can serve as a further aide in researching graduate loans.
Loans That are not suitable for students
Secured loans – may be a popular way of raising funds for education, however there’s no denying that taking one out can be a great way of organizing your finances.
Debt consolidation, financing home improvements, even paying for a new car – secured loans can be used for all of this.
However, as with any financial agreement, it’s only sensible to take your time when deciding whether to proceed.
After all, with a secured loan, you could be betting your home on a successful outcome. So what things do you need to consider before finalizing your application to fund your education?
Firstly, as just alluded to, it’s an inescapable fact that taking out a loan that’s secured on your home could potentially put your home at risk.
Should you fall behind on your repayments, the lender can apply to seize your property, evict you from it, and then sell it at less than market value to clear the debt.
This is, of course, a fairly rare outcome, and most lenders are happy to work with you if you do get into trouble, using repossession as a last resort,
but you should consider this carefully before taking out a loan, especially if you’ll be converting existing unsecured debt into secured though debt consolidation.
The second problem with secured loans is that they tend to be for fairly high amounts, and repaid over a fairly long term.
This means that the amount of interest you’ll pay over the entire term may be substantially higher than you might think. Even with a low interest rate, secured loans aren’t necessarily a cheap option for education.
Thirdly, if you use a secured loan to wipe out some existing unsecured debt, you may get the illusion that your debt levels have lessened.
There’s then always the temptation to use your credit cards to build up fresh debts, so you now have secured AND unsecured debt hanging over your head, and you’ll be in a worse position than ever before.
A fourth problem with a secured loan is that you’ll by its very nature be removing equity from your home. In other words, the value of your home and the amount of debt secured on it will be much closer.
Considering that today’s property prices are at record highs, and that many experts are predicting a fall in the near future, you could then be left in the unenviable situation of owing more than your home is worth – that is, you could fall into negative equity.
The fifth problem we’ll cover is also related to the removal of equity from your home. Should you in the future wish to take advantage of a refinancing offer to reduce your mortgage costs, it helps to have as much equity available as possible in order to secure the best deal. A secured loan now could harm your remortgage prospects in the future.
So has all this put you off the idea of getting a secured loan for your education? It shouldn’t do, as you may still benefit greatly from the financial restructuring one will allow you to do.
However, it’s a big decision, and this is why you need to be aware of the possible problems first, so that your decision can be as informed as possible.
Unsecured Loan is not advisable for student
You are in need of loans without collateral and you think it is easy. Lender will go through your credit report.
Since you are just a student, you have a special condition, you need to make special efforts.
An unsecured bad credit loan provider will understand this. Every student thinks this would not happen to them. But the fact is, it do happens to normal people.
In fact it can happen to anyone. Understanding this will make finding getting unsecured for education is not a wise choice.
Now since you are looking for unsecured loan for education this would mean you cannot offer any security for the loan amount you intend to borrow.
Unsecured loans are very optimal for those who are looking for loans without guarantee. Usually home assets is accepted as collateral.
For an unsecured loan lender, there is no security for the amount he is offering. This will be reflected in the interest rates.
Since you have you are only a student, this will further add to the already increased interest rates.
The interest rates for unsecured student loan is high. The lender has no claim on any of your asset, unlike secured loans where lender holds the title to your home.
Typical interest rate for unsecured student loan depends on your particular situation.
A student must understand that the interest rate offered to them will not be the same as offered to someone else.
Your loan amount, zero income, zero credit score, financial condition will play a role in determining interest rates.
Ask for free quotes, most of the sites are offering free quotes. Quotes will give you the approximate idea about much you are going to pay for unsecured student loan.
The amount that you can borrow for unsecured student loan can vary with lender. The lender will provide as low as $2000 to as high as $25,000.
Unsecured loans are useful for low amounts. For very low amounts you will have to check whether the loan are appropriate.
Although unsecured loans for every purpose. It is equally appropriate for home improvement, debt consolidation, vacation, automobile purchase or wedding.
Unsecured loans are providing you with financial security without warranty. You of course have a very potential instrument in your hand.
If you are able to employ it in the right way, you will be of course flogging off financial impediments in the most favorable way ever.