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Education Loans In The New Zealand

New Zealand is a chosen option for international students who wish to make a strong career after graduation. Most international students in New Zealand are enrolled in universities and private training establishments. The country aims to revitalise its international education sector, with an optimistic outlook for recovery by 2030 and strong government support for its growth. International student enrolments recovered steadily through 2023. From a low of 11,820 in May 2022, they climbed to 34,230 by August 2023 before settling at 28,725 in February 2024. Students worldwide go to New Zealand to find career and employment opportunities!

With globally ranked universities and a competent education system, New Zealand gives the ideal mix of opportunities, culture, economy, and environment for an international student to excel. However, studying here can be an expensive affair. The cost of education and living is not everyone’s cup of tea. In cases like these, private banks, NBFCs and private banks can be of help! Students can create strong applications and apply for loans to help them solve their expenses.

University costs in New Zealand vary based on your study level, subject, and student status, with overseas students paying more than domestic students. According to the official Study in Zealand website, international undergraduate students may expect to pay roughly NZ$22,000-32,000 each year, with additional costs for areas such as medicine and veterinary science. Annual fees for overseas master's students range from NZ$26,000 to NZ$37,000 annually. To cover a significant chunk of their expenses, most overseas students prefer obtaining a New Zealand student loan

The best part of taking a New Zealand education loan with UniCreds is that you can get up to 100% financing, implying that all your expenses will be covered by the loan. The following are the things you can expect a student loan for New Zealand to cover -

• Tuition Costs
• Travel & Transport, including the tickets
• Accommodation & Rental expenses
• University fees & additional course costs
• Food expenditures
• Living expenses
• Laptop
• Other research, thesis, and project-work-related expenses
• Any other expense required for your education

In New Zealand, two types of loans are primarily available to students. What kind of New Zealand education loan you apply for is partially up to you; however, it will also depend on the financial institution and your eligibility. Check the types of loans in the sections here:

• Secured Education Loans: In New Zealand, a secured student loan requires the applicant to offer security or collateral. Apartments and retail stores are tangible assets, whereas fixed deposits and government bonds are intangible securities.
• Unsecured Education Loans: A New Zealand education loan without collateral is an unsecured loan for the UK. As the name implies, applying for an unsecured student loan in the UK. However, it is important for students to note that the New Zealand student loan interest may be higher for unsecured education loans due to the lack of collateral.

Applying for a New Zealand education loan requires careful planning and research. Here are some key points to consider:

Making Informed Decisions:

• Don't just chase the most considerable loan amount: Focus on finding a lender with the most favourable terms, not just the highest amount. Consider factors like interest rates, repayment options (prepayment flexibility, partial payments), and service charges or prepayment penalties.
• Loan Term vs. Total Cost: The total cost of your loan depends on the repayment period. While longer-term offers lower monthly EMIs (Equated Monthly Installments), you'll pay more interest overall. Choose a shorter term if you're confident about securing a well-paying job after graduation.

Optimising Loan Utilisation:

• Leverage Moratorium Periods: These grace periods typically last for the duration of your programme plus an additional grace period (e.g., six months). While interest accrues during this time, you don't have to make any loan payments. Consider using this time to strategically pay down the accumulated interest, reducing your overall loan burden.
• Minimise Interest by Disbursing in Installments: Banks typically calculate interest on the disbursed loan amount. Since tuition fees are often paid semester-wise, applying for the loan amount in instalments can significantly reduce the total interest paid.

Maximising Tax Benefits:

• Section 80E Tax Deduction: Indian tax law allows students to deduct the interest paid on education loans from their taxable income under Section 80E. However, this deduction is only available for loans taken from authorised Indian banks or financial institutions and is capped at a maximum of 8 years. Therefore, a longer loan term may translate to less tax benefits.

By following these tips and conducting thorough research, you can make informed decisions when applying for a New Zealand education loan, minimising your financial burden and maximising your return on investment.

UniCreds, unlike any other platform, makes securing student loans manageable. Here are some of the reasons we are the best choice:

These universities are among the top choices for international students in New Zealand based on their QS rankings and the quality of education they offer. Check the top universities in New Zealand for international students and their World University Ranking 2024.