Top 10 University Loans in Australia for 2024

Top 10 University Loans in Australia for 2024

Securing the right loan is crucial for managing the cost of higher education. Australia offers various loan options to assist students in funding their university studies. Below is a detailed comparison of the best university loans available in Australia for 2024, highlighting key features, interest rates, and other relevant information to help you make an informed decision.

1. HECS-HELP

Overview: HECS-HELP is a government loan scheme for Australian undergraduate students. It covers the cost of tuition fees for eligible courses, and repayment is based on income rather than a fixed amount.

Interest Rate: No interest; indexed by Consumer Price Index (CPI)

Repayment Term: Repay when income reaches $48,361 (2024 threshold)

Loan Amount: Up to the full course cost

Fees: No fees

Eligibility Requirements: Australian citizens, permanent residents, and New Zealand citizens with appropriate residency status.

Special Features:

• Income-Based Repayment: Repayment amounts are based on income, which means you pay more when you earn more.

Considerations:

• Ideal for students in need of financial assistance with no up-front costs, but repayment is required once your income reaches the threshold.

2. FEE-HELP

Overview: FEE-HELP is another government loan scheme available for undergraduate and postgraduate students. It assists with paying tuition fees, with repayments based on income.

Interest Rate: No interest; indexed by CPI

Repayment Term: Repay when income reaches $48,361 (2024 threshold)

Loan Amount: Up to the full course cost

Fees: No fees

Eligibility Requirements: Australian citizens, permanent residents, and New Zealand citizens studying eligible courses.

Special Features:

• Coverage for Full Tuition Fees: Can cover the entire cost of tuition for eligible courses, including some postgraduate programs.

Considerations:

• Similar to HECS-HELP but applicable for a broader range of courses, including postgraduate studies.

3. SA-HELP

Overview: SA-HELP assists students in paying student services and amenities fees, which are compulsory at many universities.

Interest Rate: No interest; indexed by CPI

Repayment Term: Repay when income reaches $48,361 (2024 threshold)

Loan Amount: Up to $1,295 for 2024

Fees: No fees

Eligibility Requirements: Australian citizens, permanent residents, and New Zealand citizens.

Special Features:

• Covers Student Services Fees: Specifically for covering fees related to student services and amenities.

Considerations:

• Useful for covering additional fees beyond tuition, ensuring comprehensive support.

4. OS-HELP

Overview: OS-HELP provides financial assistance to students who are studying overseas as part of their Australian university course.

Interest Rate: No interest; indexed by CPI

Repayment Term: Repay when income reaches $48,361 (2024 threshold)

Loan Amount: Up to $8,500 (for study abroad)

Fees: No fees

Eligibility Requirements: Australian citizens, permanent residents, and New Zealand citizens studying abroad.

Special Features:

• Study Abroad Support: Provides funds for travel and living expenses while studying overseas.

Considerations:

• Ideal for students participating in international exchange programs, providing essential financial support for studying abroad.

5. Youth Allowance

Overview: Youth Allowance is a government benefit designed to assist students with living costs while they are studying.

Interest Rate: N/A

Repayment Term: N/A

Loan Amount: Up to $1,201 per fortnight

Fees: No fees

Eligibility Requirements: Australian citizens, permanent residents, and New Zealand citizens.

Special Features:

• Living Expense Support: Provides financial assistance for students’ living expenses.

Considerations:

• Helps cover living costs while studying, supplementing other loan or financial aid options.

6. ABSTUDY

Overview: ABSTUDY provides financial assistance to Indigenous Australian students to help with living costs and educational expenses.

Interest Rate: N/A

Repayment Term: N/A

Loan Amount: Varies depending on circumstances

Fees: No fees

Eligibility Requirements: Indigenous Australian students.

Special Features:

• Comprehensive Support: Covers both living expenses and study-related costs.

Considerations:

• Offers targeted support to Indigenous students, making it a valuable option for eligible individuals.

7. Bankwest Student Loan

Overview: Bankwest offers private student loans with competitive interest rates and flexible repayment options.

Interest Rate: 6.00% – 12.00%

Repayment Term: 5 – 10 years

Loan Amount: Up to $40,000

Fees: Possible application fees

Eligibility Requirements: Australian citizens, permanent residents, with good credit.

Special Features:

• Flexible Repayment Options: No prepayment penalties, allowing for flexible loan management.

Considerations:

• Offers flexibility and competitive rates, though eligibility depends on creditworthiness.

8. NAB Personal Loan

Overview: NAB provides personal loans that can be used for education expenses, with flexible terms and competitive rates.

Interest Rate: 6.50% – 13.00%

Repayment Term: 1 – 7 years

Loan Amount: Up to $60,000

Fees: Possible application fees

Eligibility Requirements: Australian citizens, permanent residents, with good credit.

Special Features:

• Flexible Terms: Allows funds to be used for various education-related expenses.

Considerations:

• Provides flexibility in use and terms, but rates may vary based on credit history.

9. Westpac Student Loan

Overview: Westpac offers private student loans with customizable terms and competitive interest rates.

Interest Rate: 5.99% – 13.00%

Repayment Term: 1 – 10 years

Loan Amount: Up to $50,000

Fees: Possible application fees

Eligibility Requirements: Australian citizens, permanent residents, with good credit.

Special Features:

• Customizable Loan Terms: Flexible terms to suit individual needs.

Considerations:

• Allows for customizable repayment options, though eligibility and rates are influenced by creditworthiness.

10. Commonwealth Bank Student Loan

Overview: Commonwealth Bank offers private student loans with flexible repayment options and additional financial services.

Interest Rate: 5.90% – 12.50%

Repayment Term: 1 – 10 years

Loan Amount: Up to $50,000

Fees: Possible application fees

Eligibility Requirements: Australian citizens, permanent residents, with good credit.

Special Features:

• Additional Financial Services: Includes access to various financial planning tools and services.

Considerations:

• Provides comprehensive financial services alongside competitive loan terms.

In-Depth Analysis

Comparison Table

Lender	Loan Type	Interest Rate	Repayment Term	Loan Amount	Fees	Eligibility Requirements	Special Features
HECS-HELP	Government Loan (Undergrad)	No interest, indexed by CPI	Repay when income reaches $48,361 (2024 threshold)	Up to full course cost	No fees	Australian citizens, permanent residents, and New Zealand citizens	Repayment is based on income, not fixed amount.
FEE-HELP	Government Loan (Undergrad/Grad)	No interest, indexed by CPI	Repay when income reaches $48,361 (2024 threshold)	Up to full course cost	No fees	Australian citizens, permanent residents, and New Zealand citizens	Can cover full tuition fees for eligible courses.
SA-HELP	Government Loan (Student Services)	No interest, indexed by CPI	Repay when income reaches $48,361 (2024 threshold)	Up to $1,295 for 2024	No fees	Australian citizens, permanent residents, and New Zealand citizens	Covers student services and amenities fees.
OS-HELP	Government Loan (Overseas Study)	No interest, indexed by CPI	Repay when income reaches $48,361 (2024 threshold)	Up to $8,500 (for study abroad)	No fees	Australian citizens, permanent residents, and New Zealand citizens studying overseas	Provides financial assistance for studying abroad.
Youth Allowance	Government Benefit	N/A	N/A	Up to $1,201 per fortnight	No fees	Australian citizens, permanent residents, and New Zealand citizens	Financial support for living expenses while studying.
ABSTUDY	Government Benefit	N/A	N/A	Varies depending on circumstances	No fees	Indigenous Australian students	Financial support for living expenses and study-related costs.
Bankwest Student Loan	Private Student Loan	6.00% – 12.00%	5 – 10 years	Up to $40,000	Possible application fees	Australian citizens, permanent residents, with good credit	Flexible repayment options, no prepayment penalties.
NAB Personal Loan	Private Student Loan	6.50% – 13.00%	1 – 7 years	Up to $60,000	Possible application fees	Australian citizens, permanent residents, with good credit	Flexible terms, funds can be used for education expenses.
Westpac Student Loan	Private Student Loan	5.99% – 13.00%	1 – 10 years	Up to $50,000	Possible application fees	Australian citizens, permanent residents, with good credit	Customizable loan terms, funds for various education costs.
Commonwealth Bank Student Loan	Private Student Loan	5.90% – 12.50%	1 – 10 years	Up to $50,000	Possible application fees	Australian citizens, permanent residents, with good credit	Flexible repayment terms, additional financial services.