Ibrahim Gardner
Australia is one of the most popular countries for international students, offering a wide range of academic and research opportunities. However, international students often face financial challenges in securing the necessary funds to pursue their educational goals. While there is no government loan scheme in Australia for international students, they can explore various funding options, including loans from their home countries, scholarships, university payment plans, and private lenders. This paragraph introduces the topic by highlighting the popularity of Australia as an international study destination, acknowledging the financial challenges faced by international students, and providing an overview of the available funding options.
| Characteristics | Values |
|---|---|
| International students' loan options in Australia | International students generally apply for loans in their home countries before arriving in Australia. |
| Loan options in home countries | Students from the US, Canada, Sweden, Norway, or Denmark may be eligible for education loan schemes from their home country. |
| Loan options in Australia | International students are not eligible for Commonwealth-supported places (CSPs) or Higher Education Loan Program (HELP) loans. |
| Exceptions | From 29 June 2023, New Zealand citizens who formerly held a Special Category Visa and have transitioned to a permanent resident visa on the pathway to citizenship will have continued access to HELP loans. |
| Other options | Students can explore scholarships, family funding and support, or work up to 40 hours per fortnight while in Australia. |
| Scholarship options | Scholarships are available through universities, local organizations, and companies. They are based on academic merit, location, subject, and financial circumstances. |
| Living costs | Living costs vary across Australia. Sydney is the most expensive city, while Hobart is one of the most affordable. |
| OS-HELP loans | OS-HELP loans are available for students enrolled in a CSP who want to study part of their course overseas. |
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What You'll Learn
International students' loan eligibility in Australia
International students in Australia can finance their tuition fees and living costs through a variety of methods, including family funding, student loans, and working up to 40 hours per fortnight. Obtaining a loan in Australia as an international student is challenging, and they are generally advised to apply for loans in their home countries before arriving. International students may be eligible for education loan schemes from their home countries, depending on their nationality. For instance, citizens of the United States, Canada, Sweden, Norway, and Denmark can apply for education loan schemes from their respective countries.
The University of Sydney administers the United States Federal Student Aid Direct Loan Program for US citizens or eligible non-citizens who meet the eligibility criteria. Australia Award scholarships are also available for students from participating countries. These scholarships are offered by the Department of Foreign Affairs and Trade (DFAT) to students from partner countries in areas relevant to their country's development needs.
In addition to these options, international students can explore scholarship opportunities, which may be based on academic merit or other factors such as their subject of study and financial circumstances. Scholarships can be found through universities, local organisations, companies, or industry experts. It is worth noting that scholarships involving tuition discounts can vary significantly, ranging from 15% to 25% depending on the institution and course.
While international students are generally not eligible for Commonwealth Supported Places (CSPs) or Higher Education Loan Program (HELP) loans, there are exceptions. New Zealand citizens who previously held a Special Category Visa (SCV) and have transitioned to a permanent resident visa on the pathway to Australian citizenship may be eligible for HELP loans. Pacific Engagement Visa (PEV) holders are also eligible for HELP loans, provided they reside in Australia during their studies.
Furthermore, the Australian Government offers the Overseas Higher Education Loan Program (OS-HELP) for students enrolled in a CSP who wish to study part of their course overseas. To be eligible, students must complete specific forms, meet residency requirements, and study overseas within six months of their application being approved. OS-HELP loans are paid directly to the student to cover expenses such as airfares, accommodation, and other travel or study costs.
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Applying for a loan in your home country
International students in Australia are not eligible for Commonwealth Supported Places (CSP) or Higher Education Loan Program (HELP) loans. These loans are only available to Australian citizens and permanent residents. However, former New Zealand Special Category Visa (SCV) holders who are on the pathway to Australian citizenship and are permanent residents may be eligible for CSP and/or HELP loans. To be eligible, you must be living in Australia for the duration of your study.
If you are an international student planning to study in Australia, you will generally need to apply for a study loan in your home country before arriving. It is important to only seek loans from reputable providers with reasonable interest rates. You should shop around and spend time finding the best deal.
To obtain a visa for studying in Australia, you will need to demonstrate that you have sufficient funds. Specifically, you must show that you have at least 12 months' worth of course fees in a bank account, along with AUD 21,041 for living costs and up to AUD 2,000 for travel expenses. Alternatively, you can prove that your parents or partner have funds of at least AUD 7,362 in the 12 months before your application.
There are other options for financing your studies in Australia, such as scholarships, grants, and working up to 40 hours per fortnight while studying. Scholarships can be based on academic merit or other factors like your chosen subject, financial circumstances, or location. You can find scholarships through your university, by researching local organisations and companies, or by speaking to an industry expert.
If you are a US citizen or permanent resident studying in Australia, you may be eligible for a Study Abroad Loan. These loans are disbursed to students before they depart for their host country. Additionally, some loans for international students studying in the US do not require a cosigner, although having one can improve your chances of approval and lower your interest rate.
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Australian Government's OS-HELP loan
International students in Australia can finance their education through family funding and support, student finance or loans, or by working up to 40 hours per fortnight while in the country. They can also explore scholarship opportunities, which can be based on academic merit, or factors such as their location, subject of study, and financial situation.
In terms of loans, temporary visa holders and other international students are not eligible for either a Commonwealth Supported Place (CSP) or Higher Education Loan Program (HELP) loan and will be enrolled in a full fee-paying place. However, there is an exception for eligible former New Zealand Special Category Visa (SCV) holders who are on the pathway to Australian citizenship and are permanent residents. They can access a HELP loan.
Another option for international students is the OS-HELP loan, a scheme by the Australian Government. OS-HELP is available to eligible undergraduate and postgraduate students enrolled in a CSP who want to undertake some of their studies overseas. Students may receive one loan per six-month study period and can access a total of two OS-HELP loans over their lifetime. The maximum loan amount for 2025 is A$11,207, which is interest-free and fee-free.
To be eligible for OS-HELP, students must be Australian citizens or permanent humanitarian visa holders, enrolled with an Australian university, and have completed one equivalent full-time student load (usually one year of full-time study). They must also be studying full-time overseas, and this study must count toward the course requirements for the Australian course they are enrolled in. Additionally, students must have at least 0.125 EFTSL of their course left to complete once they have finished their overseas study.
Students can apply for an OS-HELP loan by completing and submitting an application form, which is available from their university or higher education provider. They will also need to submit an OS-HELP debt confirmation form and provide their tax file number and unique student identifier. The loan amount will be added to the student's accumulated HELP debt and is repaid through the Australian tax system via the Australian Taxation Office (ATO). Students can make voluntary repayments at any time or wait until they start earning an income above the compulsory repayment threshold.
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University scholarships for international students
International students in Australia can finance their tuition fees and living costs through family funding and support, student finance/loans, and/or working up to 40 hours per fortnight while in Australia.
The Australian Government offers a wide range of unique incentives and scholarships to financially support international students who plan to live, work and study in Perth, Western Australia. The majority of these are provided to students who wish to do research in Australia at the postgraduate level. A limited number of scholarships are available for students taking undergraduate programs or a general master's degree.
The University of Western Australia (UWA) offers a number of scholarships to international students. International students admitted to a Higher Degree Research (HDR) course under the Research Training Program (RTP) are eligible for a RTP fees offset and/or stipend. A RTP fees offset pays for the tuition fees for the duration of the course, up to a maximum of four years of full-time equivalent study for a doctorate by research and two years of full-time equivalent study for a master's by research. A RTP stipend assists HDR students with their living costs while undertaking an HDR course.
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. US students can often bring their US Financial Aid with them to their educational institution in Australia, including for one or two semesters of study abroad. Many international and charitable organizations offer US scholarships for international study, including the Fulbright program.
Students can find scholarships that suit them through their university, by researching local organizations and companies, or by speaking to an industry expert. The more students explore their options and apply to agencies awarding scholarships, the better their chances of accessing funding for their schooling.
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Living costs and expenses in Australia
The cost of living in Australia is high, and it is one of the most expensive countries to study in. The minimum cost of living in Australia for international students is AUD 20,000, but this will vary depending on the university, the city, and the individual's spending habits. On average, a single person's estimated monthly costs are AUD 1,109.50 without rent. To get admitted, the average cost is AUD 29,710, and it can range above AUD 40,000. This equates to approximately AUD 1,200 per week, depending on the location of study.
Living costs across Australia vary significantly. Sydney is perhaps the country's most well-known city, but it is also the most expensive. Accommodation costs in Sydney can be the highest in the country. On the other hand, Hobart is one of the most affordable cities for students, with accommodation costs up to 25% cheaper than in other cities.
International students in Australia can choose from various accommodation options, including on-campus residences, homestays with local families, and private rental homes. If you opt for independent accommodation or if your university does not provide hostel facilities, you can expect to pay between AUD 1,000 and AUD 1,750 for a single-room unit.
Students in Australia typically finance their living costs through family funding, student loans, and/or part-time work. International students can work up to 40 hours per fortnight while studying. Scholarships are also available, and these can be based on academic merit or other factors such as the subject of study and financial circumstances.
To obtain a student visa for Australia, applicants must demonstrate that they have sufficient funds. This includes showing 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 expenses. Alternatively, applicants can demonstrate that their parents or partner have funds of at least A$7,362 in the 12 months before the application.
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Frequently asked questions
International students can get loans from private companies such as Prodigy Finance and Spark Finance. However, international students are usually limited to securing a loan from their home country. There is no government loan system for international students in Australia.
To qualify for a Spark Finance international student loan, you must be a citizen with a valid passport from one of the countries that Spark Finance supports, have been accepted into undergraduate or postgraduate coursework at an Australian university, and have a co-signer who is an Australian citizen or permanent resident with a minimum of 3 years of good credit history.
Students in Australia generally finance their tuition fees and living costs through family funding and support, scholarships, or by working up to 40 hours per fortnight while in Australia. International students can also apply for scholarships, such as the Australia Award scholarships, or the United States Federal Student Aid Direct Loan Program (for US citizens or eligible non-citizens).
