How Do Student Loans Work in Australia?
Acquiring a degree or any qualification from a tertiary institution is quite expensive. This is often the case in all parts of the world. Apart from having to study very hard, you also need to work extra hard to source for funds to finance your education. Fortunately, many governments across the globe have come up with measures to help students to finance their studies. The help that is offered by governments ranges from loans to personal grants. Sometimes the help comes in the form of private sponsorship from well-wishers or companies. In Australia, all the forms of help above are available to students. In particular, student loans are quite common and they are used by many students in Australia to finance their studies. How do student loans work in Australia?
They are easy to get
First of all, student loans are easy to get in Australia. Provided you have documents to prove that you have been accepted into a tertiary institution or not, getting a student loan in Australia is very easy. This is mainly because most financial lenders are fully aware of the fact that students do not have the capacity to generate revenue during the course of their studies or prior to the onset of their studies. With this in mind, you can feel free to apply for a student loan to finance your studies.
You must be a permanent resident or Australian citizen to be eligible for student loans
To be eligible for student loans in Australia, you must prove that you are a permanent resident living in Australia. If you do not meet this condition, you have to be an Australian citizen. Financial lenders will take into account all the matters associated with nationality before they can consider granting you the loan. This condition is also supposed to be met by individuals who are applying for student loans that are offered by the government.
Most student loans are associated with low interest rates
In general, the student loans that are available to students in Australian learning institutions are all associated with fairly low interest rates. Most financial lenders are fully aware of how students struggle to settle down shortly after completing their studies. In particular, government loans are the ones that are paid back at very low interest rates.
Repayment of the loans is usually after completing studies
When you have completed your study program, you will be required to pay back the loan in full. For some private lending institutions, repayment of the loan begins immediately after the completion of studies. In the case of most government loans, repayment may start a little later. For example, it can start after a year has elapsed.