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How about allowing a deduction based on local rates? That seems fair.Reply
What kind of lame argument is this? Can’t use CPF for overseas education cause it will drain on the parent’s retirement… and local education will not? Claiming that the kid may not repay the CPF loan for overseas study but not for local study, is there some magic to local education that makes people 100% repay their loans? Isn’t there already a cap on the amount that can be used for local education? If the overseas education spending is subjected to the same cap what *is* the problem? What a nonsensical Straits Times article.Reply
Yes… on the flip side the arguments provided in the ST article are sound technically speaking. Retirement concerns should come before funding children tertiary education. But the appalling double standard for local vs overseas education is just plain discriminatory. They should get their points checked before publishing these kind of “shooting themselves in the foot” article. Full of red herrings and contradictions.Reply
Looks liked they followed up on the article by another which tells us that graduates are not paying back the CPF loan to their parents.
Actually, to prevent the default, they can auto deduct the payment from the children’s CPF.
But then, that will mean a net outflow of money from CPF (children’s account instead of parents) to pay for education.Reply
Honestly, I’m surprised that so little people are defaulting on their CPF loan, 5% is such a low figure. It makes no sense to payback your parent’s retirement money into their CPF, when CPF has so many restrictions. A better option would be to pay back the loan in cash to their bank account.Reply
Actually, that’s a good point. That probably explains why many children do not pay back into their parent’s CPF.Reply
Overseas education is more expensive excluding the living expenses. Local U may not use up to 40%..
In term of priority retirement comes first…it is money sense and not emotional. Double standard ? that might appear so. They set the standard. What to do?