Interest (the current interest rate is 1.27% per annum and subject to adjustment) will be charged once the loan is drawn down until the NLSPS loan is fully repaid. For example, a student loan borrower enrolls in a 2-year study programme and takes up a NLSPS loan of $55,000 at each year of study, his / her total loan amount will be $110,000 upon commencement of repayment and the interests accrued will be around $2,096*. If the student loan borrower opts to repay the loan in 15 years, his / her monthly instalment amount will be around $683*.
*The calculation of the amounts is worked out on the assumption that the interest rate will remain at 1.27% per annum during the study period and throughout the repayment period.