Taking student loan in Australia

Australian Department for education has come up with certain policies and loan plans through which a student can pursue his higher studies without dropping or worrying about their fee. The loan system is abbreviated as HELP which stands for Higher Education Loan Program regulated by the Higher Education Support Act 2003. HELP was earlier known as HECS or Higher Education Contribution Scheme when it was launched in the year 1989. The benefit of these loans is also offered for students pursuing vocation studies under the VET student loans program which is covered under the VET Student Loans Act 2016. If a student is eligible for this loan, his part or whole tuition fee is covered but the cover may not extend to include other expenses like course material, rent, and other expenditures. The loan accrues as a debt which depends on the indexation of CPI or consumer price index. The debt recovery becomes due when a student starts earning and his salary crosses the prescribed threshold. The procedure is overlooked by the ATO or Australian Taxation Office.

What are the limitations of borrowing under FEE-HELP?

Eligibility

The benefit of the loan through HELP or VET is only extended to the following:-

Australian Citizens
Permanent residents that have been provided visa on humanitarian grounds
Citizen of New Zealand that fulfils certain criteria of residency.
The amount of fee you wish to get covered
The student must be above eighteen years of age in case there is no guarantor
The income and credit history of the loan applicant
Students under eighteen years of age may apply if they have a guarantor
The applicant must not have already exceeded the loan limit by prior application

Among these general qualifications, the applicant has to fulfil some specific requirements also. HECS HELP can only be extended to those who are a member of CSP or Commonwealth support place.

Applying for HECS HELP

There are certain requirements for initiating the procedure to get a HECS HELP that is explained as follows:-

Applicant must have a TFN or tax file number
A request for inclusion in CS or commonwealth support
HECS HELP form that is filled by the student. This form would be provided by the educational education in which the student intends to study.

Types of loans that could are offered

HECS-HELP
FEE-HELP
OS-HELP
SA-HELP
VET FEE-HELP
VET Student Loans

Loans for International Students

International students are not eligible to apply for HECS HELP. The government program applies only to citizens. Students that have come from other countries to pursue their studies in Australia may get personal educational loans from different non-governmental institutions. Many banks and private financing firms and individuals offer a wide range of policies for taking loans. The first requirement they seek is a valid visa which is a student visa or working visa. The person may become a permanent resident of Australia to avail the facility. This option was outside the domain of universities. But, most of the universities offer beneficial and easy loan options for international students. They work in consonance with the government of the country from which the student has arrived. For example, the University of Sydney assists students from Canada to access loan from Canadian central or state government. The University of Melbourne offers loans for the long term provided that an Australian citizen or a permanent resident of Australia provides a guarantee for the loan taken by the student.

Scholarship programs

Students who dream of studying in Australia may try to obtain scholarships and awards that are offered to worthy international students. Applying to an Australian university makes some students eligible for that. Other students whose applications are not considered automatically may directly apply. These awards are endowed based on academic excellence and merit. So, it is better to inquire about applying to check whether your candidature could be considered for a scholarship. Here is a list of awards and scholarships for international students:-

Australia Awards
Destination Australia
RTP or Australian Government Teaching Program
Australia APEC Women in Research Fellowship
Provider Scholarships

It is very hard for a student to leave everything behind and then pursue his studies in a foreign land. This humanitarian and philanthropic act of helping a person in realising his dream is commendable. A certain level of economic fulfilment and security motivates him to try hard and obliges him to give back what he took from society. Mental and physical well-being is very necessary for a student to focus on his studies. It can only become possible if he is free from financial distress. Personal loans make this happens and students can conduct his studies with peace of mind.

About Author