Loans for Students: how to Fund Your Higher Education in US and Australia?

No Comments

By Adam Winch

Loans for Students: Student Education is a building block for society. Much more than that, learning is a key to the holistic development of a human being. After you graduate from high school, the standard options are to seek higher education. Now, further studies can be burdening, financially if not academically.

If you are targeting an Ivy League School and Top Universities such as Yale, Harvard, Cornell, Stanford, Duke, MIT, or any other in the United States, things get more challenging. Just as complicated as the admission procedures seem, the fee can also be a bit of a factor.

It is better to fund your college education and apply for student loans. Even in the case of Australia, Universities in places such as Melbourne and Sydney are quite expensive, and you might need funding.

In the subsequent article, we have narrowed down all the precise details that you need to know as a student about funding your education. Read thoroughly in order to get information regarding Student Loans in the United States and Australia.

Loans for Students: how to Fund Your Higher Education in US and Australia?

Loans for Students in the US and Australia

Graduating from top universities is definitely a dream for many students. Every student paces towards their preparation for getting into a good school. Colleges such as Stanford or the University of Sydney are not only well-ranked and popular but also quite expensive.

Aspiring students might be able to get into the said college, but fee funding can be a bit of an obstacle. However, it is not a huge one. You need to make up your mind and apply for funding for your education.

Quite easily, Student Loans and College Funding have been made available by various banks, government organizations, and even colleges. All you need to do is fulfill the criteria and apply for one.

One thing that you must observe is that you must find the best loans and be aware of all the terms and conditions. You do need to pay back your education loan in a particular time period. Of course, you also have to pay an extra amount accountable as the interest. Still, compared to other loans, taking up one for education is easier. As an aspiring student, you must understand all the aspects of College Funding and Loans, as discussed further.

Characteristics of Student Loans

The prospects who are aspiring to take up an education loan must know what exactly one is and what are the prime concepts behind it. The following are all the details and characters you need to know about the Student Loans provided in the United States and Australia:

  • In order to meet the expenses of education, primarily tuition fees, students get funded. However, these are the loans that they have to pay back in a particular duration.
  • Student Loans are much more lenient and convenient as compared to other loans, such as those for Automobiles, Housing, and any other.
  • The rate of interest for Students is much lower as compared to other loans.
  • Such students who have received an offer from the university aim to get enrolled and have decent finances and no criminal record can quickly get funded.
  • The authorities check the background and educational performance of the students in order to provide them with the amount they desire.
  • When the student is enrolled and is studying, they are not promulgated or behest to repay a large part of the amount. Instead, they get the time and have flexibility in case of repayment.
  • The student must fulfill the criteria and should be eligible in order to receive the scholarship amount.

College Funding in the United States

There are two kinds of students, home and international. International students can apply for loans at their respective nations and opt for any other option accordingly. But, if you are a citizen of the United States and have to apply for a student loan, the ensuing information shall prove highly beneficial for you as you do so.

Types of Student Loans available in the United States

There are the following kinds of ways in which you can obtain funding for your college education in the United States:

  • Federal Student Loans: The Government of the United States funds the students, and it is very affordable and convenient. The student can apply easily, and the authorities offer the best support in any way possible. They offer loans to students in four formats. These are Direct Subsidized Loans, Undirect Subsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. The rate of interest is relatively high in this case, within the range of 7.24% APR to 12.29% APR.
  • Private Student Loans: The students can choose to apply at the banks in order to get funding for their educational courses. These loans are comparatively expensive and a bit more binding than the Government ones. They ensure that the students are able to return a certain amount that would benefit the company. At the same time, the government tries to lift the burden as much as possible. However, the repayment, loan applications, money dispersion, and all the stages are much more convenient in this case. They charge a rate of interest within the range of 3.75% APR to 8.75% APR. APR is the Annual Percentage Rate, which will be applied to the amount of loan sanctioned. The percentage differs depending on the bank that is approached.

Education Funding Assistance Options

You can get help in funding for your education through any of the subsequent options:

  • Federal Student Loans: The United States Government offers loans to students, and the program is known as Federal Student Aid or FSA. It is definitely the largest Student Aid organization in the nation. The students can receive grants, loans, and work-study funds in order to manage their finances. The authorities at the U.S. Department of Education observe the performance and academic achievements of the students in order to assist them and fund their further education.
  • College Loans: Various colleges in the United States have a section of Fee and Funding on their official portals. The applicants or the aspirants can head to the respective sections and check the options to obtain education loans with help and tie ups from the college they are applying to. This process is quite uncomplicated, and most of the college authorities ensure that they are able to help the students as much as possible.
  • Bank Funding: Banks such as Citizen Bank, Bank of America, and more offer Education Loans. These are known as Private Student Loans as the Government does not play a role here, and neither does the college. The students can visit the respective banks or head to the websites in order to enquire or apply.
  • Private Firms and Agents: If you are still confused and unsatisfied regarding the aforementioned options for student loans, you can choose to connect with private firms and agents. Basically, there are agents and agencies that specifically deal with everything related to education applications and immigration. They help you send in applications or even get education loans. You can contact established enterprises or contact independent agents. Some of the best private agencies are Discover and Earnest.

Also Check: Scholarships for Students along with Scholarships Offering Universities

Loans for Students in Australia

Australians or New Zealand Special Category Visa Holders or Permanent Humanitarian Visa Holders who reside in Australia can get funding for their education. The students can apply for the Higher Education Loan Program HELP.

The students can help from external agents, government agencies, or colleges. They will have to apply for HECS-HELP loans which are for all Commonwealth students. In all public universities, the HELP scheme is very readily available to students.

Additionally, there are certain private universities that offer the scheme in order to provide assistance with Loans for Students. There are private agents such as Mozo and HDFC Credila that help the students in funding their finances for education.

Eligibility for HELP-HECS Loans for Students

The students who wish to apply for the Higher Education Contribution Scheme HECS – Higher Education Loan Program HELP have to be eligible in order to do so. The authorities at Study Assist of the Australian Government will be closely considering the eligibility of the candidates in order to provide them with funding assistance. Here are the eligibility conditions:

  • The student should be enrolled in an institution supported by the Commonwealth.
  • Applicant must not be taking more than 2 years of education in a period of 12 months.
  • The student should either be an Australian Citizen or a New Zealand Special Category Visa Holder residing in Australia or a Permanent Humanitarian Visa Holder residing in Australia at the time of education.
  • The student must have submitted Request for Commonwealth support and filled out the HECS-HELP application.
  • There must be available HELP Balance as per the records of the Student.
  • Students must have Unique Student Identifier USI and sufficient Student Learning Entitlement.
  • Completion rate requirements have to be met by the respective student.

How to Apply for College Funding in Australia

As mentioned above, the students can apply at the banks or colleges in order to apply for educational funding or else they can fill out the HECS-HELP form. The application in every case can only be made once within a year.

Usually, the students get support only when they have an offer in hand. Additionally, so as to get the funding, the students will have to go through complete verification and furnish all the required documents. The aspirants can find all details on the Study Assist portal of the Australian Government.

Leave a Comment