Student Loans – Relief When Banks Say No (2026)

As an international student in Australia, you may have found yourself grappling with the financial pressures of pursuing your education abroad. The rising costs of tuition, living expenses, and the occasional unforeseen expense can be overwhelming, especially when you're far from home. One question that often arises is: can international students get student loans in Australia? In this article, we will explore this topic in detail, providing you with the essential information you need to make informed decisions about financing your education.

Understanding Student Loans for International Students

International students make up a significant portion of the student population in Australia, contributing to the vibrant multicultural landscape of the country. However, funding your education as an international student can be challenging. Unlike domestic students, international students are not eligible for government-subsidised student loans such as HECS-HELP or FEE-HELP. This limitation necessitates exploring alternative financing options, such as private loans, scholarships, or part-time work.

Student Loan Options for International Students

When it comes to securing a loan as an international student, several factors come into play, including interest rates, eligibility criteria, and lender requirements. Here’s what you need to know:

Private student loans are a viable option, but they often require a co-signer who is an Australian resident or citizen. Interest rates for these loans can range from 6.49% to 12%, depending on the lender and the applicant's financial profile. Personal loans are another option, though they typically come with higher interest rates and require proof of income and a good credit history.

Steps to Securing a Student Loan

Securing a student loan as an international student involves several steps. Here’s a step-by-step guide to help you navigate the process:

1. Research Lenders: Start by researching lenders who offer loans to international students. Esteb and Co, with access to over 83 lenders, can provide a variety of options tailored to your needs.
2. Check Eligibility: Review the eligibility criteria for each lender. This often includes having a co-signer, a valid Australian bank account, and in some cases, proof of enrolment at an Australian educational institution.
3. Prepare Documentation: Gather all necessary documents such as your passport, visa, proof of enrolment, and financial statements. If a co-signer is required, ensure they are prepared with their financial documentation as well.
4. Apply for the Loan: Once you have selected a suitable lender, submit your application along with the required documentation. Be prepared for potential interviews or additional requests for information.
5. Review the Offer: If approved, review the loan offer carefully. Pay attention to interest rates, repayment terms, and any associated fees.
6. Accept and Manage Funds: Accept the loan offer and ensure you understand how and when funds will be disbursed. Establish a budget to manage your finances effectively.

Expert Tips and Considerations

Obtaining a student loan as an international student can be complex, but with careful planning and guidance, it is manageable. Here are some expert tips to consider:

• Budget Wisely: Create a detailed budget to track your expenses, ensuring you can meet repayment obligations without compromising on essentials.
• Explore Scholarships: Investigate scholarship opportunities that may be available through your institution or external organisations. Scholarships can significantly reduce your financial burden.
• Maintain a Good Credit Score: If you have a credit history in Australia, maintaining a good credit score can improve your chances of loan approval and better interest rates.
• Seek Professional Advice: Consider consulting with a mortgage broker like Esteb and Co, who can provide expert advice and help you find the right loan product from their extensive panel of 83+ lenders.

Frequently Asked Questions

1. Can international students work part-time to support their studies?
   Yes, international students in Australia on a student visa can work up to 40 hours per fortnight during semester and unlimited hours during semester breaks.
2. Is there a minimum loan amount for international student loans?
   The minimum loan amount varies by lender, but generally starts at around $5,000 AUD.
3. What if I don’t have a co-signer?
   Without a co-signer, your options may be limited, but some lenders may still consider your application based on other factors such as income or assets.
4. How long does the loan approval process take?
   The loan approval process can take anywhere from a few days to several weeks, depending on the lender and complexity of the application.
5. What happens if I can’t repay my loan?
   It’s crucial to contact your lender immediately if you face repayment difficulties. They may offer solutions such as deferment or restructuring of the loan.
6. Are there penalties for early repayment?
   Some loans may have penalties for early repayment, so it’s important to check the terms of your loan agreement.
7. Can I apply for a loan from overseas?
   Yes, but you will need to have all documentation and possibly a co-signer in Australia to complete the process.