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This is quite shocking to me!
One in 20 students default on CPF education loan repayments
By Wayne Chan | Posted: 18 October 2010 2304 hrs
SINGAPORE : One in 20 students who have used their parents' CPF savings for tertiary education did not repay their loans on time.
According to Manpower Minister Gan Kim Yong, as at September, 5 per cent, or 7,650 out of 153,000 students have defaulted on their loans.
In his written reply to West Coast GRC MP Ho Geok Choo's Parliament question, Mr Gan said his ministry is looking into using additional measures to tackle non-repayment of education loans.
Children who use their parents' CPF monies to fund their education are required to start repaying their loans one year upon graduation.
They should complete the loan repayment within 12 years.
Mr Gan said the CPF board can take legal action against children who do not repay their loans on time despite repeated warnings.
In extreme cases, the Magistrate Court can order the seizure or sale of the defaulter's property to repay the loan.
Bankruptcy proceedings may also be initiated against loan defaulters.
Parents can use up to 40 per cent of their accumulated ordinary account savings for their children's full-time local diploma and undergraduate courses. - CNA /ls
One in 20 students default on CPF education loan repayments
By Wayne Chan | Posted: 18 October 2010 2304 hrs
SINGAPORE : One in 20 students who have used their parents' CPF savings for tertiary education did not repay their loans on time.
According to Manpower Minister Gan Kim Yong, as at September, 5 per cent, or 7,650 out of 153,000 students have defaulted on their loans.
In his written reply to West Coast GRC MP Ho Geok Choo's Parliament question, Mr Gan said his ministry is looking into using additional measures to tackle non-repayment of education loans.
Children who use their parents' CPF monies to fund their education are required to start repaying their loans one year upon graduation.
They should complete the loan repayment within 12 years.
Mr Gan said the CPF board can take legal action against children who do not repay their loans on time despite repeated warnings.
In extreme cases, the Magistrate Court can order the seizure or sale of the defaulter's property to repay the loan.
Bankruptcy proceedings may also be initiated against loan defaulters.
Parents can use up to 40 per cent of their accumulated ordinary account savings for their children's full-time local diploma and undergraduate courses. - CNA /ls
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