Education is expensive, and most students rely on loans to finance their higher studies. Two common types of loans are Study Loans and Tuition Fee Loans. While they serve similar purposes, they have key differences depending on the country. In this blog, we explain study loan vs tuition fee loan in detail, including examples, calculations, and repayment terms.
What is a Tuition Fee Loan?
A Tuition Fee Loan (TFL) is a financial aid provided to students specifically to cover their course tuition fees.
- Singapore: TFL covers up to 90% of subsidised tuition fees for Singaporean students.
- UK: TFL covers the full tuition fees charged by the university or college.
Key Features:
- Paid directly to the university.
- Repayment usually starts after graduation when your income crosses a certain threshold.
- Interest-free during the study period in Singapore; interest accrues in the UK based on government rates.
Example (Singapore):
- Tuition Fees: SGD 10,000/year
- TFL covers 90% → SGD 9,000 loan
- Student pays 10% → SGD 1,000
Example (UK):
- Tuition Fees: £9,250/year
- Tuition Fee Loan covers full £9,250
- Paid directly to university
What is a Study Loan?
A Study Loan (SL) is broader. It can cover:
- Remaining tuition fees not covered by TFL (Singapore)
- Living expenses such as rent, food, transport, and books
Key Features:
- Repayment starts after graduation when earning above a minimum threshold.
- Interest-free during study in Singapore; accrues interest in the UK.
- Helps students manage overall cost of living during university.
Example (Singapore):
- Tuition Fees: SGD 10,000/year
- TFL covers 90% → SGD 9,000
- Remaining 10% + Living Expenses: SGD 5,000
- SL covers SGD 6,000 → fully finances tuition and living
Example (UK – Maintenance Loan):
- Rent, food, books: £12,000/year
- Maintenance Loan may cover £8,000 based on household income
- Remaining £4,000 must be self-funded or via scholarships
Key Differences: Study Loan vs Tuition Fee Loan
| Feature | Tuition Fee Loan | Study/ Maintenance Loan |
| Purpose | Covers tuition fees only | Covers living expenses and remaining tuition |
| Payment | Paid directly to university | Paid to student account |
| Interest | Singapore: 0% during study; UK: interest accrues | Singapore: 0% during study; UK: interest accrues |
| Repayment | Begins after graduation above income threshold | Begins after graduation above income threshold |
| Coverage Example (SG) | SGD 9,000/year tuition | SGD 6,000/year living + remaining tuition |
| Coverage Example (UK) | £9,250/year tuition | £8,000/year living costs |
How Repayment Works: Simple Calculations
Singapore Example
- Total Loan: SGD 9,000 (TFL) + SGD 6,000 (SL) = SGD 15,000
- Repayment begins after graduation when monthly income > SGD 2,000
- Monthly repayment: ~10% of income above threshold
If graduate earns SGD 3,000/month:
- Income above threshold = 3,000 – 2,000 = 1,000
- Monthly repayment = 10% × 1,000 = SGD 100
UK Example
- Tuition Fee Loan: £9,250/year for 3 years → £27,750
- Maintenance Loan: £8,000/year for 3 years → £24,000
- Total Loan = £51,750
- Repayment starts at £27,295/year (2025 threshold)
- Monthly repayment = 9% of income above threshold
If graduate earns £35,000/year:
- Income above threshold = 35,000 – 27,295 = £7,705
- Annual repayment = 9% × 7,705 ≈ £693
- Monthly repayment ≈ £58
Tips for Managing Your Loans
- Understand your coverage: Know exactly what TFL or study loan will cover.
- Budget wisely: Calculate living expenses before taking extra loans.
- Check repayment rules: Interest rates and thresholds vary by country.
- Consider part-time work: To reduce loan dependency, especially for living costs.
- Plan early: Start exploring scholarships or bursaries alongside loans.
Conclusion
Understanding the differences between Study Loans and Tuition Fee Loans is crucial for students planning higher education. While tuition fee loans cover course costs directly, study loans or maintenance loans help with living expenses and remaining tuition fees. Proper planning, budgeting, and knowing the repayment terms can make your financial journey smoother and less stressful.
By knowing how much each loan covers and calculating repayments with examples, students in Singapore and the UK can make informed decisions and avoid unexpected financial burdens.