For many working adults seeking to further their studies, it is often the hefty price tag that discourages many from pursuing higher education. Such financial barriers can cause many to give up that chance, which in turn, will affect their personal and career growth in the long run.
All it takes is a strong financial support, such as an education loan, to help these aspiring students bridge the financial gap and achieve their scholarly goals. In this article, we at Quick Loan hope to jump into the specifics on the challenges our applicants may face in terms of financing their higher education, and the solutions they can seek out to tackle the problem without landing themselves in heavy debt.
Understanding the Financial Challenges of Higher Education
Often, the steady increase in fees for higher education is closely related to global inflation, making it difficult for recent students to afford such prices without any form of financial backing. Coupled with other necessary living expenses, some low- to middle-income families may find it overwhelming to consider such an option at the cost of significant livelihood. In 2016, a Straits Times article was published, highlighting how more parents are going into debt for their kids’ education.
It is common to see a misrepresentation of students from less privileged backgrounds within prestigious institutions, as the costly tuition fees play a significant role in widening the gap between these socioeconomic classes. Certain suitable candidates may be deterred by the price point, and are forced to pick a more affordable choice at the cost of the quality of their learning.
While there are others who seek to overcome this roadblock by entering the workforce first, and eventually paying off the school fees with their initial income, many employers tend to value a candidate’s education as a viable measurement of their aptitude in a job, which in turn leads to a vicious cycle where a student is trapped in a low wage job, being unable to save enough for their further education to improve their career advancement.
These financial challenges can also be caused by certain policies that are introduced. For example, another Straits Times article in October 2023 highlighted a 4-year progressive plan to increase school fees for non-Singaporeans in government schools.
Education Loans as a Gateway to Academic Opportunities
Educational loans are meant as a lifeline for students to address the financial challenges when it comes to higher education. These loans allow students to have a peace of mind from the immediate pressure of coming up with the money in paying off financial debts, and allow them to pursue their academic opportunities unhindered.
There are usually two types of educational loans: one that is provided by the Singaporean government, and private loans, which are managed by the bank or licensed moneylenders.
The former is often used to help support students hailing from low income backgrounds, to ensure that education remains affordable and accessible to its citizens. Accompanied by low interest rates and flexible repayment plans, it is a highly beneficial option to those who require such help.
The downside to this is that the qualification criteria may be highly selective, and certain individuals could fall through the cracks, despite needing the same amount of help. For example, the CPF Education Loan Scheme allows applicants to use their CPF savings to pay for their education. However, this is only valid for full-time subsidised diploma/degree courses at Approved Educational Institutions (AEIs).
For those who might not qualify for the former, but are still in a dire need for financial assistance, private educational loans will usually serve as their best option as they tend to accept a more diverse range of applicants, with fair and affordable rates.
Specifically for licensed moneylenders, such as Quick Loan, they stand out in terms of tailored accessibility and convenience, as they streamline the application process to the point of efficiency and almost immediate approval, ensuring that applicants will never be bogged down by exhausting admin work or extensive timelines.
The Impact of Education Loans on Students and Society
While there are some who see educational loans in Singapore, particularly private education loans, as a further disadvantage for students pursuing their higher education, on the contrary, it is actually the reverse!
For students, the option of being able to take a fair and structured education loan might be the very opportunity they need to help them break the cycle of generational poverty and help them create a path towards a better future. As these students gain access to higher education, unhindered by financial challenges, they significantly improve their prospects in employment, higher earnings, and job satisfaction.
For society in Singapore itself, it benefits from an influx of educated citizenry due to inclusive opportunities, who are able to contribute to a wide range of industries, such as healthcare, technology, and engineering. In a whole, this leads to an overall benefit as these students begin to contribute to societal advancements.
Education loans, thus, do actually help to play a significant role in promoting equity amongst students and a more diverse, inclusive workforce for society’s benefit.
Challenges and Considerations When Taking an Education Loan
While applying for educational loans in Singapore is a great option to help address a student’s financial woes while pursuing higher education, it does come with certain risks too if applicants are not careful. Hence, it is essential that an applicant takes precautions in borrowing responsibly and ensures that they do not accidentally trap themselves into a larger amount of debt owed.
Before choosing on an education loan, it is usually wise to check on the details below:
- Interest Rates and Repayment Terms: Always be clear on the interest rates that your lender offers, and the agreed repayment terms between you and them, to ensure that you are not taking an education loan that is beyond your financial means.
- Repayment Flexibility: Prefer loans that give you a fair amount of flexibility, grace periods, or income-based repayment plans.
- Long-Term Financial Impact: Calculate your total amount owed for the educational loan you are considering, which means adding up the principal amount and the interest charged. This will help you plan for the future, knowing how much you will need to save every month to ensure that you can repay the loan sum accordingly when it is due.
It is also worth noting that while educational loans from the Singaporean government or financial institutions are slightly stricter in their terms and conditions when it comes to repayment plans, licensed moneylenders like Quick Loan are more than happy to tailor applicants’ repayment plans to align with their individual financial circumstances, with competitive rates to ensure that the loan remains significantly low and manageable.
Beyond Loans: Exploring Other Financial Aids and Alternatives
Beyond an educational loan, there are also other financial aids and alternatives that applicants can consider as well:
- Scholarships and Grants: Many educational institutions merit-based scholarships or need-based grants, which students can apply to help cover a portion of their education expenses.
- Work-Study Programs: Certain educational institutions offer part-time employment or internships related to students’ field of study to provide a stream of regular income, while also providing invaluable experience of the working world.
- Financial Planning: With a little bit of self-discipline, a student can plan out their expenses throughout the study period, to ensure that an affordable budget is maintained and any remaining debt owed is kept within limits.
Here at Quick Loan, we highly encourage students to explore these aids and alternatives, as they serve as a great way to supplement your education loan, ensuring that you can reduce your amount owed and be as financially stable as possible after your education completes.
Get an Education Loan With Quick Loan Pte Ltd
While there are many banks or financial institutions within Singapore that an applicant can apply for an educational loan for, with their own varying rates and repayment schemes, feel free to consider Quick Loan for your own selection!
As Singapore’s most trusted moneylender, licensed by the Registry of Moneylenders, we are more than ready to support your financial needs with 30-minute loan approvals that are up to 6 times your monthly salary. No guarantor is required, and cash will be dispensed on the spot after processing is done.
Here are a few reasons why you should consider Quick Loan for an educational loan:
- Flexible and Personalised
As a reputable licensed money lender in Singapore, licensed by the Registry of Moneylenders and compliant with the Moneylenders Act, we offer flexible repayment plans to fit your unique needs and circumstances. You’ll also get a dedicated loan officer who’ll support you throughout your loan process with us.
- Affordable Repayment
Since our repayment plans are tailored based on your salary and needs, you can expect more affordable repayment on your education loan. At the same time, we keep our interest rates low, making it easier for you to repay the loan without incurring excessive costs. This combination of personalised repayment plans and competitive interest rates makes our education loans a financially sound choice in Singapore.
- Effortless Application Process
Unlike banks, we offer instant education loan approval in just 20 minutes after applying. We understand the urgency of your needs and aim to provide quick and efficient service, ensuring you get the funds you need without unnecessary delays. Our streamlined process is designed to make borrowing as straightforward and hassle-free as possible.
Before applying, please make sure you have these documents on the ready:
1. Singaporeans/PR
- National registration identification card
- Singpass
- If renting, provide both:
- Your tenancy agreement
- Proof of address, such as your phone bill or utility bill
- Payslips for the last three months, if available
- Bank Token
2. Foreigners
- Singpass / Employment Pass / Work Permit with a minimum 6-month validity
- Passport
- Residence information in the form of both:
- Phone bill or utility bill
- Tenancy agreement
- Payslips for the last three months, if available
- Bank Token
- Employment contract
- Staff card
Once you’ve prepared all the necessary documents, you can apply for a renovation loan online or by going to the office. Or, if you have questions or concerns, feel free to contact us via WhatsApp, our customer service staff will bae happy to answer any questions you have.
Let us help you bridge the financial gap for your higher education. Apply for your education loan with one of the most trusted and reliable licensed moneylender in Singapore today!
