What student loans are available?
There are several types of student loans available to assist students in funding their education:
- HECS-HELP - a loan program specifically designed for eligible students enrolled in Commonwealth supported places at universities. Under this scheme, the Australian government pays the student’s tuition fees directly to the university, and the student repays the loan through the tax system once their income reaches a certain threshold.
- FEE-HELP - a loan program that helps eligible fee-paying students pay all or part of their tuition fees for higher education courses at approved providers. Similar to HECS-HELP, the repayment is income-contingent and made through the tax system once the student’s income exceeds the minimum threshold.
- Peer-to-peer lending platforms connect borrowers directly with individual lenders, cutting out the traditional financial institutions. Students can explore peer-to-peer lending as a potential option for securing a personal loan.
- Credit unions and building societies are member-owned financial institutions that may be more willing to work with students compared to larger banks.
What a student loan can be used for?
Student loans can be used to cover various expenses related to education and living costs while studying:
- tuition fees charged by Australian educational institutions, including universities, TAFEs (Technical and Further Education), and colleges.
- textbooks, course materials, and other required resources for academic studies.
- cost of housing, whether it's rent for a private apartment, shared accommodation, or fees for university-managed dormitories or student housing.
- living expenses, including food, groceries, utility bills (such as electricity, water, and internet), and household essentials.
- transportation expenses, including public transportation fares, fuel costs for commuting, vehicle maintenance, or bicycle-related expenses.
- health insurance premiums, medical appointments, prescription medications, and other healthcare-related expenses.
- purchase necessary equipment for studying, such as laptops, printers, software, and other technology.
- cover personal expenses, such as clothing, toiletries, and other necessities.
Am I eligible to get a student loan in Australia?
To be eligible for a student loan, you usually must be an Australian citizen or hold a permanent humanitarian visa to be eligible for a student loan.
A sudent must be enrolled in an approved course at an eligible institution. This includes universities, TAFEs, and other registered training organizations. Your course must be an approved FEE-HELP or VET Student Loan course. FEE-HELP is for higher education courses, while VET Student Loans are for vocational education and training courses.
You must maintain a satisfactory study load as per the requirements of your course and the loan program. A student cannott exceed the FEE-HELP limit and should not have any outstanding overdue HELP debt, not have previously used your FEE-HELP entitlement for the same course or a similar one.
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 5,000 | 8.50% | 230 |
| 5,000 | 15.50% | 420 |
| 5,000 | 22.50% | 609 |
| 10,000 | 9.00% | 488 |
| 10,000 | 16.00% | 867 |
| 10,000 | 23.00% | 1,246 |
| 15,000 | 9.50% | 772 |
| 15,000 | 16.50% | 1,341 |
| 15,000 | 2.35% | 191 |
| 20,000 | 10.00% | 1,083 |
| 20,000 | 17.00% | 1,842 |
| 20,000 | 24.00% | 2,600 |
Can international students apply for personal loans (from NZ, England)?
Yes, international students in Australia can apply for personal loans, but there are specific eligibility criteria.
International students must have a valid visa that allows them to stay in Australia for the duration of the loan term. Different visas may have varying restrictions on work rights and residency status, which lenders consider when assessing loan applications.
Lenders typically require international students to demonstrate a stable source of income to repay the loan. This may include income from part-time work, scholarships, or other allowances.
Having a good credit history in Australia can strengthen an international student's loan application. However, some lenders may consider alternative forms of credit assessment if the student has limited or no Australian credit history.
International students may be required to provide collateral (such as a vehicle or savings account) or have a guarantor (a person who guarantees repayment) to secure the loan, especially if they have limited credit history or income.
