Student Loans – Secure Your Master's Dream (2026)

Are you considering pursuing a master's degree but concerned about how you'll finance it? You're not alone. Many Australians are in the same boat, eager to advance their education and career prospects but unsure about the financial implications. Fortunately, there are several student loan options available that can help make your dream a reality. In this guide, we'll explore everything you need to know about securing student loans for a master's degree in Australia, including interest rates, eligibility criteria, and practical steps to get started.

Understanding Student Loans for Master's Degrees

Student loans play a crucial role in making higher education more accessible. In Australia, these loans are designed to help cover the cost of tuition, textbooks, and sometimes even living expenses. It's important to understand the types of loans available and how they work, especially when planning to undertake a master's degree.

The primary form of government assistance is the Higher Education Loan Program (HELP), which includes FEE-HELP, a loan scheme for students enrolled in fee-paying postgraduate courses. However, not all postgraduate courses are eligible for FEE-HELP, so it's essential to check your course's eligibility.

In addition to government loans, private student loans from banks and financial institutions are available. These loans often have different terms and conditions, including variable interest rates and repayment schedules, so it’s vital to explore all options thoroughly.

Current Loan Options and Interest Rates

In 2026, the landscape for student loans in Australia includes both government and private options. Understanding the differences between these can help you make an informed decision.

FEE-HELP loans are indexed to the Consumer Price Index (CPI), meaning they increase with inflation but do not accrue traditional interest. In contrast, private loans typically have interest rates ranging from 6.49% to 12%, depending on the lender and your financial profile.

When considering private loans, it's beneficial to consult with a mortgage broker like Esteb and Co. With access to over 83 lenders, they can help you find a loan that suits your needs.

Steps to Secure a Student Loan for Your Master's Degree

Securing a student loan can seem daunting, but breaking it down into manageable steps can simplify the process.

1. Research Eligibility: Determine if your chosen master's course is eligible for FEE-HELP. If not, consider private loan options.
2. Calculate Costs: Estimate the total cost of your education, including tuition, materials, and living expenses.
3. Consult a Broker: Engage with a mortgage broker like Esteb and Co to explore private loan options from their panel of 83+ lenders.
4. Compare Loan Terms: Look at interest rates, repayment terms, and any fees associated with the loans you’re considering.
5. Apply for the Loan: Once you’ve chosen the right loan, complete the application process, providing all necessary documentation.
6. Plan Your Repayment: Develop a repayment strategy that aligns with your financial situation and career plans.

Tips and Considerations

When considering student loans for your master's degree, keep these expert tips in mind:

• Evaluate Return on Investment: Consider how the master's degree will impact your career and salary prospects to ensure that the investment is worthwhile.
• Understand Repayment Obligations: Familiarise yourself with when and how repayments will begin, especially with FEE-HELP where repayments start once you earn above a certain threshold.
• Keep an Eye on Interest Rates: If opting for a private loan, monitor interest rate trends to ensure you’re getting the best deal possible.
• Seek Financial Advice: Consult financial advisors or mortgage brokers to get personalised advice tailored to your circumstances.
• Consider Part-Time Study: If full-time study is financially challenging, look into part-time courses that allow you to work alongside your studies.

Frequently Asked Questions

1. Can international students access FEE-HELP loans?
   Unfortunately, FEE-HELP is only available to Australian citizens and certain permanent visa holders.
2. What happens if I can't repay my student loan?
   For FEE-HELP, repayments are only required once your income exceeds a certain threshold. Private loans may offer deferment or hardship options, but it's important to discuss these with your lender.
3. Are there any loan options for non-degree postgraduate courses?
   Some private lenders offer loans for non-degree courses, but terms may vary significantly.
4. How does inflation affect FEE-HELP loans?
   FEE-HELP loans are indexed to the CPI, meaning the amount owed will increase with inflation, but they do not accrue traditional interest.
5. Can I repay my loan early?
   Both FEE-HELP and private loans typically allow early repayments without penalties, but it’s always best to confirm this with your lender.