Did you know, if you use your parent's CPF to pay for your school fees, you have to return it to them with an interest? Even if your parents agree to you not returning it, CPF will not agree to it. Isn't CPF supposed to be our money? Why can't we choose to use it to pay for our children's education? Netizen Nadiah Ash recently found out about this:

"I don’t post much online. But I feel a need to voice this out because I’m really upset about my situation and how it was handled by the relevant parties.

Did you know that if you use your parents CPF to pay for your education, you are required to repay it back to your parents...CPF using CASH.

The interest is 2.5%.

So the background is, my mom paid for my poly education using her CPF. Upon my graduation, I was greeted with letters from the CPF Board demanding that I repay the full sum plus the interest my mom would have earned if the money had been left in her CPF. I applied for a deferment as I was unemployed and was going to uni.

CPF continued to send me letters. I never borrowed from loansharks but this is what it feel like to be hounded by them, minus the splash of paint, fire or pigs head.

We went to see our Constituency Minister, who empathised with us and sent in an appeal letter to waive the interest which was rejected.

Subsequently, my family and I headed down to CPF to see what can be done.

Nothing...apparently. The staff who served us was more than unhelpful.

My issue with this is:

1. Why can’t I have the option to repay using my CPF? Either way, I would to be employed to have the money and have CPF...unless I’m self employed.

2. I understand this policy was put in place to protect parents from not getting their money back. But if both parties are alright with it, why not? It’s her savings, her money.

3. Why weren’t we made aware of it when we chose to pay via my moms CPF?! Had we known earlier, we wouldn’t have chose this option.

4. The constant reminders from CPF is irritating. They are worse than loansharks. The irony is, shouldn’t it be my mom chasing me since it’s HER savings??

5. Lastly, the staff who served us at CPF was not only unhelpful, he was also rude. He sat us down in his office, and basically he was there to just listen and tell us he cannot do anything. He gave an automated answer that was programmed into him saying that it’s out of his hands. He can’t do anything. No effort to look into the situation or feedback to his HQ. He didn't even note down our issue on paper or his computer - I mean, if he wasn’t going to do anything about it, he didn’t have to be so obvious right? He said we can pay by instalments until my mom turns 55, then interest will be waived. But he also said, rather arrogantly that the CPF criteria will change. (Higher saving goal/increase the age). My mom has to be 55, and reach 171k in her retirement a/c to waive the repayment.

For those who do not know what CPF is, it's basically 20% of your monthly salary that is automatically deducted and put inside this "savings account" for your retirement.

And to those who are not aware of this, please take note, using YOUR CPF to pay for YOUR OWN CHILD's education is not "free", you would be better off paying hard cash, and then get your child to return you the money once they have started working."

Is it acceptable to force our children to return our CPF money with an interest?

Credits to Nadiah for her thoughts on the matter

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