High-quality education is expensive and Australia is no exception. While it is true that the cost an Australian education is not as expensive as, say, the cost of getting a UK education, Australian education is still far from being affordable. Thus, international students who wish to benefit from first-rate Australian education have to find a way to finance their studies.

Loans are one of the most usual ways of financing a college education and they are generally provided by the government. In this, Australia is no exception for it does have student loan schemes. Naturally, however, such loans are available only to Australian citizens.

Foreign students in Australia have to rely on other sources of funds for their Australian education.

Government Student Loans

Most countries have their own student loan schemes for their citizens. These are generally low-interest loan schemes funded by the government or sourced out to an established and government-backed financial institution. If you are a citizen of the following countries, you have this student loan option from your own government.

United States

The United States federal government has several student loan programs. Among them, Stafford Loans and PLUS Loans can be used for studying in Australia. Generally, these two loans can be funded by the government (the Direct Loan Program) or by participating banks, credit unions and other private lending institutions (the Federal Family Education Loan Program or FFELP). However, only Stafford and PLUS loans under the FFELP may be used for studying in Australia. Thus, U.S. citizens have to shop for their own lender if they wish to obtain a Stafford Loan or a PLUS Loan.

These loans require government approval. Enquiries must be made beforehand with the Australian university or college’s financial aid office to learn if they participate in these loan programs. University of Canberra, Australian Catholic University, Charles Darwin University, The Australian National University, and The University of Sydney are just a few of Australian educational institutions that participate in the Federal Family Education Loan Program.

1. Stafford Loans

US citizens who wish to pursue an undergraduate or graduate degree may apply for a Stafford loan which has a 6.8 % rate of interest.

There are two kinds of Stafford Loans: subsidised and unsubsidised. In Subsidised Stafford Loans, the applicants must be able to prove their financial need, and the government will pay for the interest charges levied on the loan while the student is in school, during the grace period and during the loan deferment period. Maximum amount of loan amount varies from year to year for a maximum amount of $23,000 for the whole period of study.

In Unsubsidised Stafford Loans the student is responsible for all interest charges levied on the loan. The maximum amount of loan value for the whole period of study is $46,000.

Students may sometimes use both. They can get a Subsidised Stafford Loan then complement this with an Unsubsidised Stafford Loan in case the former is not sufficient for their college expenses.

2. PLUS Loans

Students who wish to pursue an undergraduate degree in Australia can ask their parents to apply for a PLUS loan which is available to parents of children who are pursuing an undergraduate degree. Those who wish to enrol in graduate or professional-degree programs in Australia may procure a PLUS loan for themselves.

The interest rate is currently set at 8.5% and the total amount of money that can be borrowed by a parent for an undergraduate or dependent or by a graduate/professional-degree student for himself cannot exceed $138,500. This amount is inclusive of all other federal student loans procured by the undergraduate dependent through Stafford Loans or by the graduate/professional’s own Stafford Loans when he was pursuing his own undergraduate degree. This amount, furthermore, must have no more than $65,000 in subsidised loans.

United Kingdom

The United Kingdom has various student loan and financing schemes. Not all of them may be used for studying in an Australian educational institution, however, so UK students should ask the Australian college or university about their loan schemes for UK students. One of the loans which U.K. citizens may use for studying in Australia is the Career Development Loan; The University of Sydney participates is a recognised learning provider under this program.

Career Development Loan

This is a loan designed for adults who want to improve their practical and professional skills or competencies and thereby improve their career prospects. It can be used both for full-time and part-time study for two to three years. Typically, this loan is extended to those who are enrolled in programs that lead towards U.K. recognised qualifications. However, those who are taking up courses that do not lead to a qualification may also apply.

The career development loan can be used to pay not only for course or tuition fees but also for course-related expenses, travel costs, living expenses, child care, and others. The loan value can be as low as £100 or as high as £8,000 and students may apply for this loan with The Royal Bank of Scotland, Barclays, and The Co-operative Bank. A CDL borrower is responsible for loan repayment but the Learning and Skills Council (LSC) will pay the interest levied on the loan during the learning period up to one month after the student has stopped training.

Canada

The Canadian government also has various student loan programs for their citizens. In Canada, student loan options vary depending upon the place of residence. In some provinces and territories, students have access to both the national government loan program (Canada Student Loan) and the provincial student loan program. In some territories and provinces, however, only provincial loan programs are available.

In some provinces where both national and provincial loans are available, the national government and the provincial loan may be integrated into a single loan so students automatically get a consolidated loan which is much easier to manage. In some provinces, however, the two loans are not integrated so those students who have availed of both have to manage each one separately.

Canadian citizens can use their student loan privileges to finance their Australian education. Currently, 55 colleges and university campuses in Australia are recognised as eligible educational institutions. These include The Australian National University, La Trobe University, Macquarie University, University of Melbourne, University of New South Wales, University of Queensland, University of Sydney, University of Tasmania, University of Western Australia, Swinburne University of Technology, James Cook University, Deakin University, Queensland University of Technology, Griffith University and others.

For a complete list of the universities in Australia where Canadian students can use their loan privileges, check the Master List of Designated Educational Institutions from the Canada Student Loans Program.

Private Loans from Home Country

Private institutions can also provide loans to students. Although these loans generally have a higher rate of interest than government student loans, they are more generally available as they are not conditional upon financial need.

In the United States, for instance, many lending institutions offer private education loans to US citizens. They typically require students to have a guarantor or a co-signer. Some of these institutions are the Envisage International Corporation (Foreign Enrolled Loan program), the Student Loan Network (Private Student Loan program), Wells Fargo (Wells Fargo GraduateSM Loan, Wells Fargo Education Connection Loan and MedCAP Alternative Loan), JP Morgan & Chase Company (Chase Private Student Loans and Continuing Education Student Loans), Discover Bank (Private Education Loans for College Students), and Citigroup, Inc (CitiAssist Loans).

India probably has one of most diverse private education loan options for students who intend to study abroad. Over fifty India-based banks have loans available for overseas study. Among them are the State Bank of India, Andhra Bank, Bank Of India, Central Bank of India, Citi Bank, HSBC, and others.

Private Loans from Australian University

Australian universities and colleges may have their own student loan programs in place. Typically, however, these are for small amounts and usually insufficient nor intended for course or tuition fees. International students must enquire with their university/college’s financial aid officer for their loan options.

In The University of Western Australia, international students can avail of a General Purpose Loan which requires either an Australian or an international guarantor, a Short-term International Student Loan (no Guarantor required) and a short-term international student loan. The University of Sydney likewise has an emergency loan program for international students.

In some cases, a university may not have a loan option for international students, but it can still give indirect assistance. For instance, the university may have tie-ups with Australian banks and financial institutions which may have loans to offer non-Australian citizens. It is thus crucial that international students talk with their university’s financial aid officer.