Studying at overseas universities is quite expensive and therefore, getting through a loan is one of the important criteria to be considered while applying for international universities. Selecting the best opportunity with regard to the loan offers might be difficult as various terms and conditions are applicable with regard to the same. However, it is very important to consider the cost of education while applying to these universities. This blog guides you further to get an idea about the procedure for applying for student loans in Australia. Various requirements need to be met before sufficing the eligibility criteria of getting the educational loan sanctioned.
These include the following:-
- You must be a resident of Australia and a holder of an Australian visa.
- You must have a regular source of income to prove that you are financially secure and that you’ll be able to pay back the loan.
- A bank account with an Australian bank is very essential.
- Most importantly, you must be an Australian visa holder.
For student loans, the following criteria need to be met:
- You need to be a full-time student at the university
- You must present good records of decently being able to complete your course.
- Please note that you will not qualify for a loan if you have unpaid debts.
- If one does not hold the experience of a part-time job to fund the education, your application will be rejected.
- You should not have any records of delinquency.
- You should be able to complete your course successfully.
- You should not hold any debts or fines or any such details of unpaid expenses.
- You should maintain a record of being able to pay the university fees on time.
Types of Available Student Loans:-
If you are an international student in Australia, there are many types of loans that you may choose from.
These include the following-
- Short-term / Emergency Loan: These types of loans are made available by universities as well as banks. The university gives interest-free loans whereas the bank charges a fixed rate of interest for the loan. You may borrow a loan of up to $8000 from a university. If you fail to repay the loan, an interest rate of 12.5% may be applied by the university.
- Long-term / General Purpose Loans: These are provided by private banks as well as universities. The eligibility criteria for the same have been mentioned before. Interest-free loans may be available by the university whereas a bank will finalize the deal at a fixed rate of interest.
We would now discuss type of loans offered solely by banks and not by universities:
- Graduate Loan: You can use this loan in the final year of the course. This can be used for anything you want. You do not have to pay anything for the first year, which is the best part about this type of loan.
- Car Loan: If students would want to purchase a car, they are eligible for a car loan. This is available at very competitive interest rates.
- Payday Loan: These are short-term loans, made available by the bank on an emergency basis. You may avail of them when the amounts are very small and you have a poor credit history or a part-time job.
- Unsecured Personal Loan: The interest rates applicable for these types of loans are mostly very high, and there is no guarantee needed for such loans. Most importantly, these loans depict more flexibility and therefore can be used for various purposes.
- Secured Personal Loan: You need to provide the bank with a guarantee for this type of loan. Normally, the rate of interest for such loans is quite low.
- Medical Student Loan: These are made available to pursue a medical degree in Australia. You may repay the entire loan at the end of the final year of your course which would cover other debts such as cost of living and much more.
Repayment of International Student Loan in Australia-
It is important to follow certain rules and regulations in order to repay the loan, which is different in short-term loans as well as long-term loans.
These are listed below:-
- The loan amount can be repaid via check, cash, or a draft or via online payment too.
- The borrowed amount should be repaid within six months since the time the loan was acquired.
- If these circumstances and targets are not met, then an interest rate will be charged as per your college.
- Failure in repayment of loans may lead to a negative reflection of credit ratings.
In the case of long-term loans-
- The long-term loan should be paid back in full amount at the end of the course.
- The loan can also be paid monthly or fortnightly (as per convenience), as agreed by both parties.
- If unable to pay the loan on time, you may be unable to procure any documents from the university and would be unable to see the results (applicable for university loans).
- Interest-free loans are made available by the university, however, if delayed, 12% interest rate may then be applicable.
- If you fail to repay the loan in the given time, your guarantor shall bear the liability of repaying the loan.
- A friend, parent or relative qualifies the terms of being a guarantor. The university staff, students and spouses do not qualify for the criteria of being a guarantor.
The Top Five Universities that provide loans to international students include – The University of sydney, University of Queensland, Macquarie University, University of Melbourne and Monash University. Many other universities in Australia also offer similar loans and grants for international students. So, it is always advisable to check the university website and get a glimpse of various loan offers that are available for international students.