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Student Loans
Need a personal loan to cover your study expenses? Compare student personal loans here with Savvy.
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The features and benefits of student personal loans
Centrelink income accepted
Our flexible lending partners can accommodate income derived not just from your job, but also supplementary funds received through Centrelink.
Avoidable fees
There are several fees that can potentially be avoided on your loan, including ongoing (up to $20 per month) and establishment fees (up to $600).
No security needed
You don’t have to worry about providing an asset as collateral for your personal loan, with unsecured financing on offer to give you more flexibility.
No upfront deposit
There’s no obligation for you to pay any lump sums or fees up front; all of your payments begin one week, fortnight or month after you sign off on the loan.
Pay your loan out early
You aren’t required to stick to your repayment schedule, either. You can choose from lenders who offer free additional and early payments to help you save.
Rapid approval
Your personal loan application can receive an instant outcome within 60 seconds, with the funds transferred directly to your account inside 24 hours.
Student personal loans explained
What are student loans?
Student loans are a personal loan designed to meet the needs of students. They are usually intended to pay for things like tuition and textbooks but can also be used for living expenses.
Student loans also tend to offer a range of benefits over other personal loan types. For example, some lenders may offer lower interest rates and waive certain fees for some student loans. Some will also provide additional features, like redrawing or top ups, for free.
How does a student loan work?
Student loans work much the same as any other personal loans. They provide access to a set amount of credit, which is funded as a lump sum. They require repayment over a series of regular instalments, with fees and interest incurred along the way.
However, while they're usually the same product as any other personal loan, student loans can differ in one important way: their eligibility criteria.
Acknowledging that most students wouldn’t meet standard personal loan eligibility criteria, student loans often have more flexible requirements. Specifically, they tend to be less strict about an applicant’s credit history and income. This means that they’re an option, even if you only work casually and haven’t had a loan before.
To be eligible for a student loan, you will generally need to be able to prove that:
- You are at least 18 years old
- You're an Australian citizen or permanent resident
- You receive enough income to support your loan's repayments (usually at least $20,000 p.a.)
- You are currently studying at a recognised education institution (such as a university or TAFE)
However, the specifics of this will vary from lender to lender.
Types of personal loan
With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.
Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.
Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.
Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.
If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can not only make them more convenient to manage but also potentially save you money overall.
Looking to take off on a holiday with your family but want to pay it off at your own speed? Travelling can be expensive, so you can distribute the cost of your next trip over a period you’re more comfortable with by taking out a personal loan to pay for it.
There are so many costs that go into making your dream wedding a reality, from venue hire to catering to dresses and suits and so much more. By taking out a personal loan, you can start planning the big day you want, even if you can’t pay for it upfront.
Home improvements are desirable for a range of homeowners to help keep their living space fresh and interesting, not to mention increase its value. You can get past the financial hit of renovations with a personal loan paid in instalments.
Personal loans aren’t limited to PAYG employees, though. If you’re running your own business, you can still be approved for financing by submitting tax returns and other alternative documents instead of payslips and utilise your funds however you wish.
There’s a variety of expenses which come with being a student, ranging from the cost of your courses, textbooks and computer to your accommodation. Taking out a personal loan can make these costs more manageable by spacing them out.
Some lenders offer green personal loans, which are designed to be used for energy-efficient appliances and products such as solar panel and air conditioning installation in your home. You can qualify for lower interest rates and fees with this loan.
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How do I choose the right student loan?
Fixed or variable interest rate
It's worth thinking about the type of loan you're after before locking in a deal. In most cases, personal loans will come with fixed interest rates, so you'll know exactly how much you’ll pay over the loan term. However, you may encounter some lenders who offer variable rates on their personal loans also, albeit far less frequently. Fixed rates are usually the best for students, as they bring financial certainty which enables you to budget more accurately.
Payment flexibility
You should prioritise the ability to pay your loan off at a rate which suits your needs. As such, you should look for lenders who enable you to pay on a schedule which suits your personal income situation (either monthly, fortnightly or weekly).
Available loan terms
Of course, you should ensure your lender offers the length of term you're most comfortable repaying. While personal loans go up to seven years in length, students are more likely to be borrowing over five years or fewer. Don't compromise your comfort if it means you may struggle more in the future.
Minimum and maximum borrowing amounts
Additionally, you should ensure you're actually able to borrow the amount you need. Some lenders will raise their minimum loan amounts up to $5,000, restricting your ability to borrow smaller amounts. If you're looking for a loan on the larger end of the scale, the same applies.
Repayment flexibility
You should also, wherever possible, look to secure a loan which affords you the ability to make additional repayments and complete your loan term ahead of schedule. This flexibility holds the key to potentially saving you hundreds of dollars overall, if not more.
Tips for securing your student loan
Exhibit good financial behaviours
Lenders will want to see that you're financially responsible, save regularly and don’t overdraw your account. This is particularly important if you have no credit history.
Enlist a guarantor
A guarantor is someone who agrees to assume responsibility for your loan if you fail to repay it. This could be a friend or family members and should be someone with a good credit history.
Provide security
Secured loans present less risk to the lender, so are easier to get to get and have lower interest rates. They require you to put up a major asset (like your car), though, which can be repossessed if you miss repayments.
Request a smaller amount
The smaller the amount you’re borrowing, the more affordable the repayments will be. As such, make sure you apply for only the amount you need.
Common questions about financing your big day answered
How much you can borrow will depend on the lender, the type of loan, and your circumstances. While some lenders will offer personal loans up to $75,000, you will need to prove you can afford the repayments. Some lenders will also want to see a breakdown of what you plan to use the funds for.
A loan is considered affordable if you can comfortably meet the repayment schedule. As such, you should look at the repayment amount and work out if you can make it work long-term. To be really sure, try saving that amount for a few months and see how it impacts your lifestyle.
Yes – whether you're doing a year course or completing a long degree, you can take out an amount and use its funds for any study-related reason you like (or non-study-related reasons).
Probably not – most lenders will require you to be an Australian citizen or permanent resident to take out a student loan. In general, lenders won't accept applications from those living in Australia on a student visa, so this closes off the ability for you to get a loan in this position.
While having a good credit history can help you get a loan, it is possible to find finance without one. In fact, many loan providers are more flexible on their credit history requirements. However, you should make sure you meet all of the lender’s requirements before applying.
Also, if you are given a loan, make sure you make all of your repayments on time and in full. This will help you build a good credit rating and should make getting loans easier in the future.
Most lenders will want to see that you’re receiving some form of income. While many will want to see income from stable employment (e.g. a part-time job), others may accept support payments as income.
Helpful personal loan guides
Still looking for the right personal loan?
Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.