International Students: Getting Loans In Australia

International students in Australia can access a range of funding options, including scholarships, grants, bursaries, and loans. While international students are not eligible for domestic student loans, they can apply for loans from private institutions or their home countries. Some eligibility requirements for these loans include visa status, residency, and proof of income. Students can also work up to 40 hours per fortnight while studying in Australia to help finance their tuition fees and living costs.

International students' loan eligibility in Australia

International students in Australia can explore various funding options to support their studies, including loans, scholarships, and personal finances. While international students are not eligible for Australian government-funded HELP loans, they can consider the following options to finance their education and living expenses:

University Scholarships and Awards:

International students can explore scholarships offered by their chosen university or other institutions. These scholarships can be merit-based or needs-based, providing tuition discounts or covering other educational expenses. It is worth noting that students can often combine multiple scholarships to maximize their financial aid.

Education Loans from Home Countries:

International students from specific countries may be eligible for education loan schemes from their home nations. For instance, students from the United States, Canada, Sweden, Norway, or Denmark may apply for loans from their respective countries to fund their studies in Australia.

Private Loans:

International students can also consider borrowing funds through private banks or other financial institutions. It is important to exercise caution and only seek loans from reputable providers with reasonable interest rates. Additionally, students should carefully review the terms and conditions of any loan agreement before committing.

Personal Finances and Family Support:

Some international students may choose to fund their studies through personal savings or family support. It is essential to consider the cost of living in Australia, which can vary significantly depending on the location. For instance, Sydney is known for being more expensive than other cities like Hobart.

Part-Time Work:

International students in Australia are typically allowed to work up to 40 hours per fortnight during their studies. This provides an opportunity to earn income and support living expenses while studying.

It is important to note that the availability of loans and other financial support for international students may depend on factors such as their chosen course, course provider, and individual financial circumstances. Students are advised to research the specific requirements and options available through their prospective universities and relevant government websites.

Applying for loans from home countries

International students in Australia are not eligible for government-funded HELP loans. However, they may be able to borrow funds through universities and private banks. International students who require study loans generally apply for them in their home countries before arriving in Australia.

If you are from the United States, Canada, Sweden, Norway, or Denmark, you may be eligible to apply for education loan schemes from your home country. For example, the University of Sydney administers the United States Federal Student Aid Direct Loan Program to US citizens or eligible non-citizens who meet the eligibility criteria. There are four types of Direct Loans available to eligible students. Depending on your grade level, you may be able to borrow the full cost of attendance each year. The cost of attendance is a calculation of tuition and associated fees, plus living expenses.

If you are an international student in Australia, you can also check with your country's embassy or consulate to see if they offer any scholarships or aid opportunities. You may also be eligible for financial aid from the state or college in which you are studying. Only when you have exhausted those options should you look into private student loans.

Private student loans for international students are available from two types of lenders: banks and non-bank lending companies. Student loans from banks offer international students the convenience of doing their banking and borrowing all in one place. Additionally, some banks offer interest rate discounts to borrowers who bank with them. However, you will likely need a co-signer to be eligible. Non-bank lenders offer international students more flexibility.

Before applying for a loan, it is important to shop around and spend some time looking for the best deal. Be extremely careful and only seek study loans from reputable providers with reasonable interest rates.

Cost of living in Australia

The cost of living in Australia varies across different cities. Sydney, for instance, is one of the more expensive cities to live in, with monthly rental costs of about $327.19 for a one-bedroom apartment and basic utility costs of around $327.19 per month. On the other hand, Hobart is one of the most affordable cities for students, with accommodation costs that can be up to 25% cheaper than in other cities.

The cost of living in Australia is determined by various factors, including the price of essential products and services, general affordability, and how changes in these costs impact individuals and families across the country. Childcare is also expensive, with an average daily cost of $135.29, although this can go up to $430 per day in some parts of the country.

When it comes to financing their living costs in Australia, international students have a few options. Some students may receive family funding and support, while others may work up to 40 hours per fortnight while studying. International students can also apply for education loans from their home countries. For instance, students from the United States, Canada, Sweden, Norway, or Denmark may be eligible for education loan schemes from their respective home countries.

It is important to note that international students are not eligible for Australian government-funded HELP loans. However, they may be able to borrow funds through universities and private banks. Additionally, some universities may administer loan programs for eligible international students, such as the United States Federal Student Aid Direct Loan Program at the University of Sydney.

Scholarships for international students

International students in Australia can finance their tuition fees and living costs through scholarships, family funding and support, student finance/loans, or by working up to 40 hours per fortnight. Scholarships are offered by the Australian government, universities, and other public and private organisations.

The University of Sydney, for example, accepts students who are eligible for a range of United States Veteran Affairs (VA) Education Benefits. The university also administers the United States Federal Student Aid Direct Loan Program for US citizens or eligible non-citizens. If you are from the US, Canada, Sweden, Norway, or Denmark, you may be eligible to apply for education loan schemes from your home country.

The Australian Government offers the Australia Awards Scholarships (AAS) program to students from a selection of developing countries who can show leadership qualities and a drive for change. The program is designed to equip students with the skills and knowledge needed to return home and contribute to their nations' development upon graduation.

The Northcote Postgraduate Scholarship enables students from the UK to undertake a higher degree at an Australian university for up to three years. The UK Government’s Turing Scheme provides funding for learning opportunities at a selection of education providers.

The Asian Development Bank – Japan Scholarship Program offers around 300 scholarships annually for postgraduate studies. This scholarship includes full tuition fees, a monthly allowance for expenses, housing, books and instructional materials, medical insurance, and travel expenses.

The Australia Government Research Training Program Scholarship is a fully-funded scholarship for international students.

Deakin University Scholarships are fully-funded scholarships for international students. These scholarships are available for postgraduate studies and provide a stipend of $28,600 per year, a relocation allowance, and health insurance.

The Melbourne Research Scholarship (MRS) is a fully-funded scholarship for international students. Approximately 600 scholarships are available for Masters and doctoral research studies. This scholarship offers a living allowance of $31,200 per year, full fee offset, Overseas Student Health Cover (OSHC) Single Membership, a relocation grant, and many other benefits.

Interest-free loans and other government programs

International students in Australia are not eligible for government-funded HELP loans. However, they may be able to borrow funds through universities and private banks. The University of Sydney, for instance, administers the United States Federal Student Aid Direct Loan Program to US citizens or eligible non-citizens who meet the eligibility criteria. The university also accepts students who are eligible for a range of United States Veteran Affairs (VA) Education Benefits.

If you are from the United States, Canada, Sweden, Norway, or Denmark, you may be eligible to apply for education loan schemes from your home country. International students can also apply for study loans in their home countries before arriving in Australia. To obtain a visa for studying in Australia, applicants will need to prove that they have at least 12 months of course fees in a bank account, plus A$21,041 for living costs, and up to A$2,000 for travel costs. Alternatively, you can show that your parents or partner have funds of at least A$7,362 in the 12 months before your application.

The Good Shepherd charity and the National Australia Bank previously offered StepUp Loans, which were small, low-interest loans available to low-income earners, including students. Although StepUp Loans are no longer available, the Good Shepherd currently runs a community credit program offering no-interest loans to eligible borrowers. The No Interest Loans Scheme allows some Australians to borrow up to $3,000 interest-free.

In addition to interest-free loans, the Australian government offers a range of other financial support for students, including Commonwealth Supported Place (CSP) subsidies, Centrelink payments, and other programs. The government-funded HELP program provides student loans to cover higher education tuition costs. There isn't a loan repayment schedule or deadline, and repayment amounts are income-contingent. The FEE-HELP loan is used to pay some or all of the tuition fees for eligible fee-paying students. OS-HELP loans are available for Commonwealth-supported students who wish to study part of their course overseas. SA-HELP loans cover student services and amenities fees imposed by higher education providers. There is a limit on how much you can borrow from the government for your studies.

The VET Student Loans program is a separate program for those undertaking approved vocational education and training (VET). It covers tuition fees for eligible higher-level VET courses, usually diplomas or above. Similar to the HELP program, there is a maximum borrowing limit, and repayments are made through the tax system once the borrower's income exceeds a certain threshold. VET Student Loans are interest-free, but a 20% fee may be charged when taking out the loan, depending on whether the enrolment is subsidised by the state or territory government.

To finance their tuition fees and living costs, students in Australia also rely on a combination of family funding and support, student finance/loans, scholarships, and/or working up to 40 hours per fortnight while in Australia. Scholarships may be based on academic merit or other factors such as location, chosen subject, and financial circumstances. Students can research and apply for scholarships through their university, local organisations, or by speaking to industry experts. Additionally, the choice of location within Australia can significantly impact living costs, with cities like Hobart offering more affordable accommodation than Sydney or Melbourne.

Frequently asked questions