5 Tips to Help you Choose the Best Student Loan for Australia

Posted by Natasha Rey on February 2nd, 2021

The Land Down Under is filled with new and exciting opportunities for your academic growth. As a student, you can make the most out of these opportunities with the help of several student loans for Australia available in the market. With many lenders providing such loans, it can get a bit confusing for the student to choose what is suitable for them.

To help these students out, we provide 5 tips that can help them choose the best student loan for Australia. 

1. Choose a lender that specializes in student loans

As a student, you will have many unique requirements that will differ from other students. Also, there is a high chance that this would be the first time you are taking credit. So, you may not be aware of the nitty-gritty of student loans for Australia. A lender that specializes in student loans will be able to understand these small things and give you guidance accordingly. It will ensure that you have a smooth positive experience with your first ever loan. 

2. Check if there is an option of unsecured loans

When you take an unsecured loan, you do not have to provide any kind of collateral (personal or family assets) as security against the loan. Often, many lenders ask for security if the loan amount is beyond a particular limit. Families do not have a choice in this situation and so unwillingly pledge their precious assets to the lender for the duration of the loan. This also creates a sense of pressure on the student to get the pledged asset back as soon as possible. To avoid getting into such a situation, you could choose a lender that offers the option of unsecured student loans for Australia. 

3. Choose a loan that provides 100% financing 

Going for higher studies in Australia requires a lot of preparation and arrangements. You have to fill the admission forms of several universities, give entrance exams that test your calibre, arrange for accommodation for when you go there, book flight tickets...the list goes on. While you figure out these things, your student loan should take care of the finances that go into them. Nowadays, many lenders offer education loans for Australia that provide 100% financing. So, make sure you choose such a lender.

4. Make sure the lender offers fast loan sanctioning

Your admission process is a time-bound one. Any delay in the process can set you back in many ways. That is why it is essential to choose a lender that offers student loans for Australia with fast loan sanctioning. NBFCs especially are efficient and quicker at processing student loans. 

5. Check the prepayment and other penalties

When you are browsing through study loans for Australia, you should also look into the charges or any penalties that you will incur throughout your loan. For example, if you have plans to prepay your loan, there might be foreclosure charges that will be applicable. If you are unable to pay your EMIs on time, then there might be late EMI payment charges too. So, make sure you are aware of these before going ahead. 

Do remember that the features of the different student loans for Australia will differ as per the lenders. Kindly read the loan documents carefully before signing.