Singapore expands financial aid and transport subsidies for students
In a move aimed at widening access to education, Singapore’s Ministry of Education (MOE) announced higher income eligibility ceilings for its financial assistance schemes and bigger transport subsidies for primary and secondary students from next year. The changes are expected to benefit about 31,000 additional students from lower- and middle-income households, bringing the yearly reach of MOE’s financial assistance schemes to roughly 133,000 learners.
Education Minister Desmond Lee highlighted the plan in a Facebook post, saying the enhancements would provide stronger support for education-related costs and ensure all Singaporean children and youths can continue across school and post-secondary programmes. While most changes start in 2026 with the new academic year, some adjustments—specifically the revised income criteria for the Edusave Merit Bursary—will take effect in November and December to align with the bursary cycle.
What’s changing in MOE’s financial assistance schemes
The MOE outlined revised income thresholds across six means-tested schemes to broaden access for families:
- MOE Financial Assistance Scheme (FAS) for Government and Government-Aided Schools (GGAS) and Specialised Schools (SS)
- Special Education (SPED) FAS for MOE-funded SPED schools
- MOE Independent School Bursary (MOE ISB) in Independent Schools and Specialised Independent Schools (ISSIS)
- UPLIFT Scholarship for ISSIS
- Edusave Merit Bursary for GGAS, SS, ISSIS, Institute of Technical Education (ITE) and Polytechnics
- Government bursaries for Post-Secondary Education Institutions (PSEIs)
Key examples include raising the gross household monthly income ceiling for MOE FAS and SPED FAS from S$3,000 to S$4,000, and increasing the per-capita income ceiling from S$750 to S$1,000. Beyond the income ceilings, MOE will implement the Household Means Eligibility System (HOMES) starting in 2026 to streamline applications and means-testing. HOMES is designed to reduce the need for supporting documents by using data from the Inland Revenue Authority of Singapore (IRAS) and other sources to determine eligibility.
Under the new approach, means-testing will consider the household income of all family members living with the student, as well as the average income over the previous 12 months. All income sources, including employment, business income, bonuses, allowances, and rental income, will be included in the assessment.
Expanded subsidies: transport and bursaries
Alongside higher income ceilings, MOE is boosting support for transport costs. The school bus subsidy for primary school students on financial assistance will rise from 65% to 70% of the monthly school bus fare. The public transport subsidy for primary and secondary students will increase from S$17 to S$21 per month.
With these adjustments, the annual pre-university bursary quantum will grow from S$1,200 to S$1,600. The monthly S$21 public transport subsidy will be folded into the annual bursary framework, applying to pre-university students receiving MOE ISB assistance as well.
The UPLIFT Scholarship for ISSIS students will also be enhanced, rising from S$1,000 to S$1,200 annually to better support high-performing or talented students from lower-income households.
Post-secondary support and upcoming changes
MOE will raise the bursary quanta for full-time and part-time students at publicly-funded post-secondary education institutions (PSEIs). For example, high-tier bursaries for full-time diploma students from lower-income families will continue to cover about 75% of subsidised tuition, with additional cash awards for other education-related expenses. For medical and dental undergraduates who qualify for the highest bursary tier, the government aims to cap tuition at S$5,000 per year for the 2026 academic year, factoring in university aid.
In the higher education space, the government bursaries will also reflect targeted support for ITE Nitec and Higher Nitec students, ensuring continued coverage for tuition and living costs.
Overall, MOE’s enhancements represent a comprehensive effort to reduce financial barriers and promote broader participation across primary, secondary, and post-secondary education. The department expects these measures to help more families navigate education costs while maintaining a fair and transparent means-testing framework that captures the realities of modern households.
What this means for families
Families with children in schools or pursuing post-secondary studies can anticipate simpler processes through HOMES and clearer income-based eligibility. The changes are designed to be forward-looking—prioritising affordability and access, while ensuring that funds go to students who demonstrate need and merit.
