Blogs on ‘Study in Australia’

Loan options for international students in Australia

4 min read
Blog Summary Exploring loan options in Australia as an international student is about more than just securing funds. It's a pathway to accessing world-class education, understanding financial nuances, and making informed decisions that align with both academic aspirations and financial realities
Loan options for international students in Australia

Loan Guide

International students in Australia opt to study further in the country for many reasons: To land a job in Australia, to extend their stay in the country, advance in their current jobs etc. However, for a majority of students, their financial situation obstructs their way forward. Though the course fees are relatively less in Australia compared to its western counterparts, most of the students still require external financial support.

Can international students get education loan in Australia?' is one of the most frequently asked (or rather googled) questions. The straightforward, quite disappointing answer to this question is 'No'. Australia doesn't offer education loans to international students. You can't avail support from the HELP program either which helps domestic students with their financial needs. The reason for this is a no-brainer. International students are temporary residents in the country, only a small percentage of them gets to stay back in the country. So, it's a high risk for the banks to lend them education loans. Even if you work part-time, the banks don't consider the salary as a reliable source of income to pay back their loans. So, it is nearly impossible for an international student to avail education loan in a foreign country, not only in Australia.

But, this doesn't mean all doors are shut for foreign students in Australia. If you are one of those students seeking funds to study further, here are some of the suggestions we have for you.

Loan from your Home Country

Of all the options available, approaching your home branch for a loan is highly likely to yield success. You are a low-risk prospect to the banks in your home country than the ones in Australia. Especially, the bank in which you maintain an account and repaid loans in the past would be happy to have you back. Unless you haven't maxed out your limits at the bank, it is always good to go back to them for more money. Countries have different policies on education loans. Up to a certain limit, the bank may issue loans without a cosigner or collateral. But, if your needs are higher, they might demand a guarantor or a property as collateral.

As a student, if you secure a loan from your home country and you land a job in Australia, it would be easy to pay the loan back in future. Earn in Australian dollars, pay in your currency!

If it's not clicking with your home bank, check out the interest rates of other banks on education loans and apply to the ones with the lowest rate.

Quick read: Benefits of Studying in Australia

University loans

On top of scholarships and bursaries, many top Australian universities offer loans to international students. To receive this support, a student must be residing in Australia and pursuing a full-time course in the university. These loans aim to support students at difficult times covering their basic expenses. Students can show proof to the university that they are not financially sound to pay for study-related expenses.

University loans are generally interest-free and issued to students who have a steady source of income. Universities lend up to $3000 and have their own repayment terms. Check out the university website to understand their eligibility terms and conditions.

For a loan amount of more than $500, you may be asked to produce a guarantor who is either an Australian citizen or a permanent resident.

Personal loans

Personal loans are an option for students who work in Australia with an approved employer and earn a taxable income. You can get different loans like home loan, car loan, payday loan etc.

Like the banks in any other country, banks require documents such as your visa information, your payslips, your employer and employment information to assess your eligibility. You may need a cosigner when you apply for a higher loan amount.

You can use this money to pay your tuition fees.

Australia has four major banks called the Big 4 -

  • Westpac,
  • Commonwealth Bank,
  • Australia New Zealand (ANZ) and
  • National Australia Bank (NAB). You can check their loan structures and go with the one that works for you. There are other financial institutions that lend loan to non-Australian residents.

There are a set of temporary visas that are accepted by banks when a loan application is made. If you are on one of those visas and you hold a job with a regular income, your chances are better.

While applying to study your next course, seek help from an experienced education consultancy in Nepal. They listen to your goals, understand current circumstances and suggest the right path ahead. You can get from them information about scholarships, bursaries and other forms of financial support from the government and institutions. Make use of those opportunities and bring down your study costs. If you are now considering studying in Australia further, book an appointment with our expert counsellors and achieve your goals smartly.

Frequently Asked Questions

What loan options are available for international students in Australia?
International students can explore options like private bank loans, loans from home countries, or specific international student loan programs offered by certain financial institutions
Are there any Australian government-backed loan schemes for international students?
While the Australian government offers loan schemes for domestic students, international students primarily rely on private lenders or financial institutions.
What criteria do banks consider when offering loans to international students?
Banks typically consider the student's credit history, course of study, potential future earnings, and sometimes require a guarantor or collateral.
Can students repay these loans with earnings from part-time work in Australia?
Yes, students can use their earnings from part-time work to repay loans, but they should ensure that their work hours comply with their student visa regulations.

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