Monday, May 11, 2009

Study Loans - University

  1. Before uni:
    • Guys:
      there's NS that feeds you, provide shelter but gives minimal pay (assume 24mths * ($450 - $100 of expenses) = $8400).
    • Girls - JC: you'll get about 6 mths worth of holidays ($4.8K), well, get an admin job or something that earns more since it's 6mths straight). Well there'll be a shortfall of 3.2K in our assumption. Please bear this in mind.
    • Girls - Poly: No holidays but you may want to choose to work for 1 year after poly before u get into uni so that you can save about $9600 even if it's - $1450 from the poly plan there's about $8150). Well for most courses, you'll save on 1 year worth of school fees ($6K) so it doesn't matter that much after all. Just that the holiday earnings in point 2 needs to deduct about 3 mths ba ($2.4K).
  2. Assume that it's the same so we will just take $8K for our assumption.
  3. During uni, there's holidays and lots of it. It's on the average about 4 mths a year worth of them, subtract the last year 2 mths. This makes it 14 mths, -4 mths of assuming attachment. Well then make it 10 mths.. but assuming that 2 of the mths you can't get a job so.. make it 8 mths. (8 * 600 as undergrads should have the ability to get more out of part time pay = $4.8K)
  4. During attachment, you should be able to get about $700 - $1K worth of pay for about 3 mths. It's not a mistake it's just a buffer sort of thing just in case. (3 * 700 = $2100).
  5. We are still short of $9100. Not to worry 'cos with the 6 - 1 year worth of grace period, you should be able to repay the debt within a year. Even without the grace period, you will only incur about $400 worth of interest from the bank loan in this case as compared to the CPF loan if you take it up. Yes.. Why we can get 9100 in 1 year. An average uni grad should be able to get a $30K annual pay job. What's $9100 is only 33% of it. You can spend the rest of that 47% after 20% of CPF. No worries.. :)
Whichever the case, overall it should be quite ok. Unless you really cannot get a job no matter what. In such case just lower your requirements further. Please dun da bao so that you dun waste money unnecessarily.

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