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1. |
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The scheme covers all approved full-time subsidised undergraduate courses leading to a degree at Nanyang Technological University (NTU), National University of Singapore (NUS) and Singapore Management University (SMU); and approved full-time diploma courses at LaSalle-SIA College of the Arts (LAS), Nanyang Academy of Fine Arts (NAFA), Nanyang Polytechnic (NYP), Ngee Ann Polytechnic (NP), Republic Polytechnic (RP), Singapore Polytechnic (SP) and Temasek Polytechnic (TP).
Part-time courses, postgraduate courses and overseas education are not included in the scheme. |
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2. |
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The scheme is meant for full-time students in approved courses because these courses are subsidized by the government. Also, full-time students have no income and hence are likely to have difficulties paying their tuition fees with their own savings. Most of these are young adults going straight from school or national service to the universities, polytechnics or arts colleges.
Part-time courses are generally tailored for working adults who are in a better position to pay their tuition fees as they have incomes of their own. If they do not have sufficient savings for a part-time course, they can defer it and build up enough personal savings to pay for their course fees later. Part-time students can therefore plan ahead with greater flexibility to ensure that they can meet the tuition fees.
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3. |
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Allowing CPF to be used for full-time studies in local tertiary institutions was a special consideration made in 1989 to help low income families support themselves or their children through local tertiary education. Students who have graduated with basic tertiary qualifications have earning capabilities which enable them to build-up their savings for further studies. Universities also have various schemes, like the Tuition Fee Loan and Study Loan scheme, to help students pay their tuition fees. |
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4. |
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Local education at approved institutions is heavily subsidised by the Government. Students should thus be able to repay the CPF savings used. On the other hand, overseas education is very costly. If the student is unable to repay the CPF savings used in cash, it would have serious consequences on the parents' or his own retirement savings. |
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5. |
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The Education Scheme is a loan scheme which enables members to use CPF savings from their Ordinary Account to pay for their children's or their own tuition fees. The student has to repay the amount withdrawn plus interest, in cash subsequently. Only full time subsidised courses at approved local tertiary institutions are included under this loan scheme. |
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6. |
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The CPF Education Scheme is a loan scheme and is meant for low income families to provide their children with a basic tertiary education. Only subsidised courses are included under this loan scheme. This is because the fees for such courses are significantly lower than unsubsidized courses as the fees are heavily subsidized by the Ministry of Education (MOE). Hence, member’s CPF savings for retirement is less likely to be jeopardized should the student be unable to repay the loan. |
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7. |
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CPF savings can only be used for fees that are subsidized by the Government (Tuition Grant). Foreign students, who choose not to take up the Tuition Grant or are not eligible for the Tuition Grant, will not be able to use CPF savings to finance their tuition fees at the approved tertiary institutions under the scheme. |
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8. |
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No. As you have already obtained a basic tertiary education and there would be no subsidy or tuition grant offered for the 2nd diploma, CPF savings cannot be used. |
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9. |
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Yes. You will be able to use CPF savings to finance the degree course if it is a subsidised course offered by NTU/NUS/SMU. |
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10. |
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No. As you have already obtained a basic degree and there would be no subsidy or tuition grant offered for the diploma, CPF savings cannot be used. |
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11. |
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Students who are enrolling for unsubsidised courses could consider taking up a study loan with commercial banks, or approach their institutions for financial assistance schemes that can be offered to them, e.g. under the Tuition Fee Loan (TFL) or Study Loan schemes. |
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12. |
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Please note that under the CPF Education Scheme, the amount that a CPF member may use is the lower of the following: |
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| a) |
40% of the accumulated CPF Ordinary Account balance, including the amounts withdrawn for investment and education or |
| b) |
the remaining balance in the Ordinary Account after setting aside amounts reserved for housing or any other CPF schemes. | |
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Please see example below: |
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| EXAMPLE 1 : (For members below 55 years old) |
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Case1
$ |
Case 2
$ |
Case 3
$ |
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| Balance in the Ordinary Account |
10,000 |
30,000 |
45,000 |
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Net amount used for CPF Investment Scheme-Ordinary Account (CPFIS-OA)
Net amount used for education |
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| Accumulated Ordinary Account Savings for education |
35,000 |
65,000 |
85,000 |
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| 40% of Accumulated Ordinary Account Savings for education |
14,000 |
26,000 |
34,000 |
| Less: Net amount used for education |
(0) |
(15,000) |
(5,000) |
| Withdrawal Limit for education |
14,000 |
11,000 |
29,000 |
(A) |
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| Cash balance in Ordinary Account |
10,000 |
30,000 |
45,000 |
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| Less: Amounts reserved (if any)* |
(3,000) |
(0) |
(9,000) |
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| Net balance in Ordinary Account |
7,000 |
30,000 |
36,000 |
(B) |
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| Amount available for education (Lower of 'A' or 'B') |
7,000 |
11,000 |
29,000 |
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| EXAMPLE 2: (For members age 55 years and above) |
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Case1
$ |
Case 2
$ |
Case 3
$ |
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| Balance in Ordinary Account |
50,000 |
35,000 |
20,000 |
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Net amount used for CPF Investment Scheme-Ordinary Account (CPFIS-OA)
Net amount used for education |
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| Accumulated Ordinary Account Savings for education |
55,000 |
58,000 |
36,000 |
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| 40% of Accumulated Ordinary Account Savings for education |
22,000 |
23,200 |
14,400 |
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| Less: Net amount used for education |
(0) |
(8,000) |
(6,000) |
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| Withdrawal Limit for education |
22,000 |
15,200 |
8,400 |
(A) |
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| Cash balance in Ordinary Account |
50,000 |
35,000 |
20,000 |
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| Less: Amounts reserved (if any)* |
(4,000) |
(0) |
(5,000) |
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| Less: CPF Minimum Sum (please refer to **) |
(21,000) |
(25,000) |
(55,000) |
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| Net balance in Ordinary Account |
25,000 |
10,000 |
(40,000) |
(B) |
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| Amount available for education (Lower of 'A' or 'B') |
22,000 |
10,000 |
0 *** |
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| For illustration purposes : (please refer to **) |
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| Balance in Special Account |
42,000 |
10,000
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20,000 |
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| Net amount withdrawn for housing |
12,000
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45,000 |
0 |
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| * |
These generally refer to amounts which have been reserved for housing and other schemes because of earlier commitments. In addition, CPF members should also take into account their monthly housing instalments, where applicable. |
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| ** |
Members have to set aside the CPF Minimum Sum at age 55. The CPF Minimum Sum applicable to members who reach 55 years between 1 July 2008 and 30 June 2009 is $106,000 after adjusting for inflation.
Please click here for more information on the CPF Minimum Sum Scheme |
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Illustration of 3 cases where the CPF Minimum Sum to be set aside: $106,000. |
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Case 1 : $44,000 from amount withdrawn for housing, $41,000 from Special Account and $21,000 from Ordinary Account |
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Case 2 : $33,000 from amount withdrawn for housing, $48,000 from Special Account and $25,000 from Ordinary Account |
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Case 3 : $0 from amount withdrawn for housing, $51,000 from Special Account and $55,000 from Ordinary Account |
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| *** |
The Ordinary Account Balance is less than the CPF Minimum Sum. Therefore, the amount available for education is zero. |
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13. |
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You may obtain your Statement of Available Withdrawal Limit (AWL) for Education by logging on to “My Statement” via my cpf Online Services with your SingPass. Please visit www.singpass.gov.sg for more information on SingPass. |
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14. |
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A student can use his own CPF savings, his spouse's and his parents' (including step-parents') CPF savings. The Board will only consider the use of sibling's or relative's CPF savings on a case-by-case basis. For such cases, the student is required to write in stating his reasons for his request as well as submit documentary evidence such as birth certificates to establish the relationship of the CPF member and the student, together with his application form. |
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In approved cases where a: |
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| i) |
sibling's CPF savings are used, up to 100% of tuition fees may be paid using the sibling’s CPF savings; |
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relative's CPF savings are used, up to: |
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10% of tuition fees may be paid using the relative’s CPF savings, if the student is studying at a university; |
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25% of tuition fees may be paid using the relative’s CPF savings, if the student is studying at a polytechnic; |
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50% of tuition fees may be paid using the relative’s CPF savings, if the student is studying at an art college. | |
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When more than one person's savings are used, the withdrawals will be deducted in the order the application forms are received and processed, e.g. the first parent to apply to use his savings will pay first. The second parent will pay only when the first parent's savings are not enough. |
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If the parents are paying for more than one child, the savings will also be withdrawn in the order of application, e.g. the savings will be used to pay tuition fees for the first child to come under the scheme, and then only the second child, and so on. |
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If during any year the savings are not enough, the student will have to pay the shortfall in cash to the institution. |
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15. |
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From 1 April 2005, the Board has waived the need for students to furnish a guarantor for applications to use CPF for education. The student, being the party who has enjoyed the benefit of using his own or another member’s CPF savings for his education, is fully responsible for the repayment of the savings used.
Existing guarantors under the scheme will continue to assume the responsibility of a guarantor. However, a replacement guarantor is not required in the event the existing guarantor becomes ineligible, i.e. when he dies or becomes an un-discharged bankrupt.
Notwithstanding the above, the Board reserves the right to require the student to provide a guarantor or other forms of guarantee on a case by case basis.
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16. |
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To apply for use of CPF savings under the Education Scheme, please click here. You must read the accompanying Terms & Conditions, and Procedures & Guidelines before you complete the online form.
The Board will keep the student/member informed of the amount of CPF savings paid out to the institution. For subsequent semesters, the tuition fees will automatically be paid to the institution, subject to the amount available for withdrawal from the member’s Ordinary Account at the point of deduction. An administrative fee of $10.50 (already inclusive of the Goods and Services Tax) is payable for each payment and will be deducted from the member’s Ordinary Account savings at the same time.
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17. |
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No, CPF savings cannot be used to repay any outstanding education loan. |
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18. |
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No, CPF savings can only be used for tuition fees that are due and payable directly to the approved institutions. |
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19. |
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You are required to start repaying the loan one year after graduation or leaving your course of study, whichever is earlier.
A letter will be sent to you about 3 months before you are due to start repaying to the member’s CPF account. |
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20. |
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The student has to repay the full amount of CPF savings withdrawn and the interest accrued which is computed from the time the savings were withdrawn. Interest will continue to be charged on any outstanding amount until the loan is paid up fully. The amount repaid will be credited to the CPF account of the member whose savings had been used for the loan.
The repayment can be made in one lump sum or in monthly instalments over a maximum period of 12 years.
You will be informed of the monthly instalment rate in our notification letter sent to you about 3 months before you are due to start repaying.
You are encouraged to repay at a higher instalment rate if you can, so that the member’s CPF savings are restored faster for his retirement needs. By paying at a higher instalment rate, you will also incur less accrued interest on the loan. To increase your monthly instalment rate, please log in to my cpf Online Services - My Request with your SingPass to increase the rate. |
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21. |
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To repay by monthly instalments, please complete and return the Inter-bank GIRO form by the deadline given in our letter, to the address as printed on the overleaf for processing.
If you wish to make a lumpsum repayment, please do so online via e-Cashier, or any of the AXS stations located island-wide. You can check your Education Redemption Statement via my cpf Online Services - My Statement for your outstanding education loan with your SingPass. |
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22. |
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Monthly letters would be sent to students who are in arrears of their repayment. The arrears, together with the current month’s instalment would be deducted from the student’s bank account under the Inter-bank GIRO arrangement with the Board. |
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23. |
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For students with an Inter-bank GIRO arrangement with the Board, the arrears in repayments will be claimed from the bank account in the next deduction together with the monthly instalment. Students are to ensure that there are sufficient funds in their bank account for the deductions. Please note that some banks may impose a charge for unsuccessful deductions for your Inter-bank GIRO arrangements. If you wish to repay your loan amount fully via AXS or via e-Cashier, please terminate your Inter-bank GIRO arrangement with the bank before proceeding with the full repayment.
For students who do not have an existing Inter-bank GIRO arrangement with the Board, please make payments for your arrears via AXS machines located island-wide or via e-Cashier. You would need an Internet Banking account with DBS/POSB, UOB or Citibank in order to proceed with the payment at e-Cashier. |
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24. |
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CPF savings are primarily meant to provide for your old-age needs. As the scheme allows you to use your CPF savings for your education as a concession, you are therefore required to repay your CPF savings using cash and restore the amount withdrawn plus the accrued interest as though it had never been withdrawn. |
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25. |
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No, all repayments must be in cash. CPF savings cannot be used for repayment of amounts withdrawn under the scheme. |
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26. |
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Upon notification of the repayment commencement date, a student may apply to defer the repayment if he meets any of the following conditions:
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He is still studying full-time either locally or overseas; or |
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He is serving full-time National Service; or |
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He is currently unemployed. |
The student can apply to defer repayment (Form AES D1) with his SingPass. The student must read the Terms and Conditions and obtain the consent from the CPF member/(s) whose savings have been used before applying for the deferment.
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27. |
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The member may apply to waive the repayment by the student if the member has met the prevailing withdrawal rules. For example, if the member is aged 55 and above, and has set aside the full CPF Minimum Sum and the Required Amount in the member’s Medisave Account.
Members who have withdrawn their CPF savings for their own education need not apply separately for the waiver. If they reach age 55, the Board will waive the repayment requirement when they apply for withdrawal of their savings, provided they have set aside the full CPF Minimum Sum and the Required Amount in their Medisave Account. The CPF Minimum Sum is $106,000 from 1 July 2008 and it will gradually increase until it reaches $120,000 (in 2003 dollars) in 2013. The Medisave Required Amount is $14,000 from January 2008 and it will increase by $2,500 (adjusted for inflation) each year until it reaches $25,000 (in 2003 dollars) on 1 January 2013. Please click here for more information on CPF Minimum Sum Scheme.
Members who have used their CPF savings for their children's education need to make an application if they wish to waive the repayment. The application should be made only after the student has graduated or has left the approved institution and is expected to begin his/her repayment.
The waiver will include the total CPF savings withdrawn and the interest the member would have earned had he not used his savings under the scheme. It does not include the amount that has already been repaid by the student and the amount used for the student’s current course of study (if applicable).
To apply, please submit an online waiver (Form AES W1) to waive the repayment with your SingPass.
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28. |
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The repayments will form part of your total CPF savings which you can withdraw if you are eligible to do so under the prevailing CPF withdrawal rules. |
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29. |
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Upon the death of the member, repayments of his CPF savings withdrawn and the accrued interest shall cease. |
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Upon the death or permanent incapacity of the student, the Board will not recover the outstanding amount from the student. |
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30. |
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If there is a permanent change of payer, the current payer will have to submit a Revocation Form (Form AES F3) with his SingPass to terminate further payments from his CPF Account. If the Board does not receive any instructions from the current payer to terminate further payments, the Board will continue to deduct the tuition fees from the current payer’s CPF Account before deducting any remaining amount from the new applicant’s CPF Account. An administrative fee of $10.50 (already inclusive of the Goods and Services Tax) will be payable for each deduction or attempted deduction.
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CONTACT US
FOR ENQUIRIES,
PLEASE CALL THE CPF CALL CENTRE AT 1800-227-1188
E-MAIL TO Education@cpf.gov.sg
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