How To Get Student Loan In Australia

The topic “How To Get a Student Loan In Australia” is a very interesting one. Please carefully go through it to get all the necessary information you need. Some of the subtopics we shall discuss are: About The Student Loan In Australia, Ways To Get Student Loan In Australia, Different Types Of Student Loans You Can Apply For In Australia, Top Private Student Loans Offered By Banks In Australia, and Ways To Repay Your Student Loan In Australia.

About The Student Loan In Australia

When it comes to countries that have a good educational system, Australia ranks among them. This is simply the reason, most people like to school in Australia. They have nice teaching equipment and professional staff that carry out the teaching.

However, living or schooling in Australia could be expensive. Sometimes, students prefer to live in school hostels than in residential areas. For this reason, students need to find a way to make enough money to foot their bills. Applying for a student loan in Australia is a way to get such cash. Even though obtaining a student loan in Australia is easy, the process is quite lengthy. Therefore, you need to be prepared and serious to follow the procedures.

Ways To Get a Student Loan In Australia

Here we’ll discuss the various ways to get student loans in Australia. However, you should know that applying for student loans doesn’t just come fast. It takes a lot of processes. Therefore, it is advised that you begin the process of applying for the loan very early. Below are the various guidelines on how to get a student loan in Australia:

You have to do research on the various banks that give student loans in Australia. Then, you find out what each bank demands before giving the loan.
Another step is to find out the cost of your studying in Australia. This includes the course tuition fees.
You must also have your University acceptance letter in Australia.
If you don’t have an Australian Visa, you can’t get a student loan.
For you to get this loan, you should still have more years to spend in school and not in your final year.
All students that are offering distance education courses are not eligible to get this loan.
Your academic record should be good enough to fetch you the loan.
You should have a little business that you do to get little money.
If you have outstanding debt, you must have to repay them before seeking a new loan.
During the process of applying for a loan, you must present your original and valid documents.
If you get a bank to collect the student loan, put down your loan amount in relation to what you really need the money for.
After the bank presents you with their loan acceptance form, endeavor to review their terms and condition before signing it.

Different Types Of Student Loans You Can Apply For In Australia

There are various types of student loans you can apply for in Australia that can help you pay some of your fees and bills. Some of those loans are mentioned below.

Short-Term or Emergency Loans

If you are attending an Australian university and you are low on funds, then you can obtain this type of loan. You must also be a regular student of the school and not a part-time student. The advantages of this type of loan are that you don’t repay with interest and you don’t need a guarantor while obtaining the loan. The only time whereby you will incur a 2.5% interest repayment rate, is when you fail to pay back at the agreed date.

While applying for this loan, you may have to present your current financial details. However, the maximum amount you can get from this loan is $1500.

Secured Personal Loan

This type of loan requires a bank guarantee, such as an asset assigned to your loan. This asset could be a car, house, or any other item of high value. Also, there you are liable to pay interest on repayment which can be a stipulated amount or a varying amount. However, the interest rate is not high, so you can pay it.

The collateral which is either your car, house, or any valuable, will go to the bank if you do not pay up the loan as and when due.

Unsecured Loan

With this type of loan, you don’t have to give any collateral in exchange for the loan offered. But you will have to pay a higher rate of interest, which can get expensive. All in all, the unsecured loan is flexible, and you can use it for various purposes.

Long-Term Or General Purpose Loan

It is important to note that, this type of loan is applicable to private banks and universities. Most importantly, it enables you to take care of various fees and bills except your tuition fees. It covers your living, clothing, and travel expenses. In this type of loan, you can borrow a higher amount of money.

Under this type of loan, you are eligible to get from $4000 to $8,000 from a university. Meanwhile, the bank can give you above $8,000. Note that, if your loan is from the university, you can enjoy an interest-free repayment. But if it is from the bank, you will have to pay interest to the bank.

Medical Student Loan

Are you seeking a medical or dental degree? Then, this medical student loan in Australia is for you. All you need to do is to meet up with the eligibility requirements. Here, it doesn’t matter if you are in your final year, you will still get the loan to foot your bills and expenses.

Car Loan

If you are a student in Australia, you can find a lot of money lenders that can give you a car loan. All you need to do is to carry out proper research to find the one that you can accept. However, note that collateral is involved here and the interest rate is also high.

Payday Loan

Australian students can obtain this short-term emergency loan from banks in Australia. But, there are certain eligibility requirements you must attain before you can gain this loan. You are eligible to this loan if you have a part-time job, a poor credit history, or are a benefit recipient. The only disadvantage of this loan is that you can’t borrow a large amount of money.

Recommended: DEFINITION OF CAPITAL INVESTMENT

Top Private Student Loans Offered By Banks In Australia

Let us look at the top two private student loans offered by banks in Australia.

Westpac Unsecured Personal Loan

This type of private student loan gives you the leverage to settle car and travel expenses. It also enables you to handle your debts properly. However, there are certain requirements you must meet up to. Those requirements are:

You must have reached the age of 18 or above.
If you are employed in Australia, you can’t get a loan.
Your income must be regular.
It is either you have a valid visa or a permanent resident in Australia before you can get the loan.

Meanwhile, there are some details that the bank will need from you in other to process the loan. Those details are:

Your current employer’s name, phone number, and address.
Print out any active debts
Your investment details
The weekly details of your after-tax income
Your daily expenses.

ANZ Fixed Rate Personal Loan

The ANZ student loans in Australia give you enough opportunity to cover your car, travel, home, and clothing expenses. It also enables you to settle your debts. The maximum amount you can borrow here is $5000. However, below is the set of requirements you need to meet up with:

You must have reached the age of 18 or above.
Have a sustainable business that can give you at least $15,000 per year.
It is either you have a valid visa or a permanent resident in Australia before you can get the loan.

However, some of the details that the bank will need from you in other to process the loan are:

Your ANZ account number.
A copy of your driver’s license.
Employment and income details.

Ways To Repay Your Student Loan In Australia

There are various ways in which you can repay your student loan in Australia. Although, the repayment rules for short-term loans are different from those for long-term loans.

The Repayment Rules For The Short-Term Loans

From the day you received the loan, you have up to six months to repay the loan.
You will have the grace to repay the loan within a year if the loan amount is higher than usual. However, this can occur due to critical factors.
With the various means of repayment, you can decide to pay through online payment, cheque, cash, or money draft.
Failure to comply with the repayment of the loan within seven days of the due date will incur payment with interest. Different banks and universities give different interest rates.
Finally, if you fail to pay up the loan as and when due, it will attract debt and unfriendly repercussions.

The Repayment Rules For The Long-Term Loans

If you have difficulty paying back the loan in full, you can pay through installments.
You must make the payment as stipulated in the agreement form.
With the various means of repayment, you can decide to pay through online payment, cheque, cash, or money drafts.
Failure to pay the university loan as and when due, the university may withhold your university documents and results.
You will incur the payment of a 12% interest rate per year if you fail to pay up as agreed.
For long-term bank loans, you may receive a post-graduation grace of a year or two to pay up the loan.
The purpose of getting a guarantor is to stand in for you in case you fail to pay long-term university loans on time. Therefore, failure to pay the loan will warrant your guarantor paying for you.

Can International Students Get Student Loan In Australia?

Yes, it is possible because various universities in Australia give student loans to both local and international students. The loan can be with short-term and long-term loans.

How Much Student Loan Can I Get In Australia?

Currently, the HELP loan limit for students is $113,028. Then, for those who offer medicine, dentistry, and veterinary science and aviation courses with census dates in 2023 will be $162,336.

Who Is Eligible For Student Loan In Australia?

To be qualified to receive a student loan in Australia, you must be an Australian citizen, be a permanent humanitarian visa holder who usually resides in Australia, and be a New Zealand citizen who meets certain residency criteria.

Conclusion

Australia is known as one of the countries that have a good educational system. This is simply the reason, most people like to school in Australia. They have nice teaching equipment and professional staff that carry out the teaching. Kindly, carry out more research if you aren’t satisfied with those in the article.