Overview Of An Education Loan In Australia
Due to its world-renowned universities, world-class education, outstanding post-study career possibilities, and high-quality living standards, an increasing number of Indian students are choosing to study in Australia. Many Indian enthusiasts seek education loans for Australia for foreign study because of the unrivalled academic excellence and support system for international students at the country's best universities. Many people need overseas education loans for Australia because the country has a high cost of education and most visas demand the tuition costs to be paid in full upfront. Education loans for Australia are available from all Indian financial lenders, however, only a handful have been authorised by the Australian Embassy. Some of the top universities in Australia which are popular among international students include:
- The University of Melbourne
- The University of Sydney
- The University of Queensland
- The University of New South Wales
- Monash University
Cost Of Studying Abroad In Australia
According to StudyMove.com, the average annual tuition price for overseas undergraduate students was AU$30,840 (US$22,170) in 2018, while for international postgraduate students was AU$31,596 (US$22,700). The tuition fees to study in Australia are different for domestic and international students. For international students, the cost of doing a Master's will range from AU$20,000 (US$14,400) to $37,000 (US$26,600). Similarly, the cost of doing an undergraduate course for an international student will range from AU$14,000 (US$10,060) to $37,000 (US$26,600). A student loan in Australia will make it easier for you to cover not only your tuition fees but also other living expenses.
Student Loan in Australia
We can see that the expense of living and studying in Australia may be rather high and that not everyone can afford it. Obtaining the requisite funds is always the most challenging component of studying in Australia. That should not, however, be a deterrent to pursuing your study abroad goals. One of the most crucial components of the procedure is your ability to arrange your cash. Various banks, NBFCs, and foreign lenders have recognised this scenario and responded by giving international student loans in Australia to individuals who wish to study in the country.
Procedure To Apply For A Student Loan In Australia
Once you’ve submitted your application to the university of your choice, arranging for funds would be the next step so that you can show the university that you have sufficient funds to manage your expenses as an international student. Since the whole loan acquisition process is cumbersome, it is advisable to start early and get it sanctioned as soon as possible. The following steps will help you with your international student loan in Australia -
- Decide on the course you want to take and the university where you want to study
- Estimate your loan amount based on the elements you'd want your loan to cover
- Research on Interest rates
- Make a list of the documents needed
- Apply for the loan
- Decide your repayment tenure
- Consult certified banks
- Determine the disbursement time
Documents Required For Student Loan in Australia
Before a bank or NBFC is able to process the loan amount, there is a list of documents that need to be furnished by the borrower (student). These include:
- Letter of admission from the University
- Loan application form filled out in full
- Documents on the cost of studies
- Identification proof
- Residence proof
- PAN details of the candidate
- Guarantor/ co-borrower/ student's bank statements
- Guarantor/ co-borrower/ student's statement of assets
- Guarantor/ co-borrower/ student's proof of income
Things That A Student Loan In Australia Covers
Depending on the plan you choose, your loan might pay all or part of your university fees, along with other costs. Typically, a student loan in Australia may often cover all of your educational expenditures. However, make sure you’re well aware of things your loan covers to see if your expectations are being met. There are different loan schemes, each fulfilling set criteria and covering a little or most of your expenses. The following expenses below are what you may expect your loan to cover -
- Tuition Fees
- On-campus or off-campus housing
- Transportation costs
- Books & library fees
- Incidental fees
- Insurance premium
- Caution deposits & Refundable deposits
Types Of Loans Available For Studying Abroad In Australia
There are two types of education loans available for studying in Australia:
Secured Education Loans: These are student loans with collateral. In order to obtain an education loan, you will be required to pledge an asset as a security to the lender. There are two kinds of collateral that can be used:
Tangible assets like properties, land, shops, and more.
Intangible assets in terms of Fixed deposits, government bonds, & insurance
Unsecured Education Loans: Unsecured education loans are those that do not require collateral. To obtain an unsecured student loan in Australia, you do not need to commit any security to the lender, as the name implies. However, there should be a co-applicant, and his or her income will be a crucial factor in the loan approval.
What are some tips on choosing the best student loan in Australia for International Students?
There are hundreds of lenders offering a variety of education loans to study abroad. Finding the perfect education from hundreds of options can be like finding a needle in a haystack. This is why you should start your research much in advance so that you have the time to check out all the options in the market. Apart from this, here are some other parameters that you should consider while choosing your education loan:
1. Calculate the loan amount - Before you begin the application procedure for an education loan, you must first determine the loan amount. You must decide whether you want a loan that covers the whole cost of your education or a loan that covers only a portion of the cost and requires you to pay the remainder out of pocket.
2. Interest rates should be researched because lenders charge varying rates based on your profile, loan tenure, collateral, and other criteria. Finding the lowest interest rate on an education loan may not necessarily be the best decision for you. So do your homework on interest rates and other terms and conditions that apply to a student loan.
3. Choose a longer repayment term - By choosing a longer repayment term, you are effectively spreading out your EMIs over a longer period of time. This will make it much easier for you to repay the loan in a stress-free way. However, if you have adequate finances, opting for a loan with a shorter term might save you a significant amount of money.
4. Approach certified banks - Education loans come with income tax benefits if availed from a government recognised bank. Applicants can claim a deduction on the interest paid on an education loan from a bank under Section 80E of the Income Tax Act.
5. Keep a track of miscellaneous expenses - The cost of tuition will form a major chunk of your educational expenses. But apart from this, miscellaneous expenses like on-site or off-site accommodation, transportation costs, books, library fees, and courseware can collectively be very expensive. Consider the cost of these miscellaneous expenses while determining your education loan amount.
Why Choose UniCreds
Unlike any other platform, UniCreds makes obtaining college loans simple. Here are a few reasons why obtaining a student loan in Australia with UniCreds is the best option for you:
- Full-funding upto 100% that covers tuition fees & living expenses
- No margin money
- Quick sanctions in case of emergencies or special requirements
- Customised financing options
- Education loan comparison
- Loan application tracker
- Collateral free loans
- Services at your door-step
- Paperless loan approvals