Breaking a scholarship bond in Singapore: what actually happens (2026)

Q: What actually happens if I break a scholarship bond in Singapore?
A: The answer comes from your signed agreement, not from a universal government formula. A sponsor may demand liquidated damages, interest, costs, or repayment from you and any sureties. Before giving notice, obtain the contract, an itemised calculation, and independent legal and financial advice.

TL;DR
Do not assume every scholarship uses the MOE Tuition Grant formula of the grant amount plus 10% compounded interest. That formula is published for the Tuition Grant Scheme, while other scholarships and service obligations can use different terms. Your signed scholarship agreement, deed, award conditions, and any related Tuition Grant obligation control what you owe.

Status: Last reviewed 19 July 2026 against current MOE, NTU, and Singapore Judiciary sources. Contract terms and sponsor procedures can change.

Start with the contract, not an online estimate

Collect every document that formed part of the award:

1. the scholarship agreement or deed;
2. the offer letter and current terms and conditions;
3. any deed signed by sureties;
4. disbursement statements;
5. amendments, deferments, study-leave approvals, or posting letters; and
6. any separate MOE Tuition Grant or service-obligation agreement.

Ask the sponsor for the proposed termination date, an itemised liquidated-damages calculation, the contractual clause used for each component, and the steps required for a written discharge. Do this before committing to a new job or promising a new employer a start date.

This guide is general information, not legal or financial advice. A lawyer should review the actual documents if the amount is material, the wording is unclear, or a sponsor threatens recovery action.

What is verified from current official sources

Some schemes publish a 10% compounded-interest formula

MOE's Tuition Grant Scheme states that liquidated damages include the total Tuition Grant received, any GST subsidy, and 10% interest per year compounded at the end of each academic year. MOE also states that the amount is payable in one lump sum and that late-payment interest may apply.

That is evidence for the Tuition Grant Scheme. It is not evidence that every scholarship bond uses the same rate, compounding method, pro-rata reduction, or payment process.

Sureties can face direct liability

MOE requires two sureties for the Tuition Grant agreement and states that the student and sureties are jointly liable for the liquidated damages if the bond is not fulfilled. NTU's bond-management page similarly states, for the obligations it administers, that a scholar and sureties can be jointly and severally liable for liquidated damages, compounded interest, and debt-recovery costs.

Reviewed by

Marcus Pang·Managing Director (Maths)