Student Loans: What Student Loans Are Available?
Personal Loans > Personal Loan Articles > Article: Student Loans: What Student Loans Are Available?For high school students heading off to college there are many student loans available in Australia. There are also many other types of financial aid available to students apart from student loans in Australia. Why apply for student loans? Because the costs of school can slowly add up and deplete your resources. Many students in modern society are simply not able to afford the cost of full tuition in many higher education facilities.
The cost of tuition is not likely to decrease in the upcoming years. Fortunately there are resources out there including private entities willing to assist students pay for undergraduate, and sometimes graduate educational expenses.
What types of expenses can student loans pay for? Student loans can help cover the costs of expenses including laptops, books, rent, furniture and other items. They also help cover the cost of tuition.
More Student Loan Information in Australia
Here is some critical information you need to know about student loans in Australia.
- Deferred Repayment Loans - Many students apply for loans hoping they won't have to pay them back until they get a job. This is because it can take some time securing stable income after someone graduates. Some schools offer what is known as a "deferred repayment loan" or HECS which is a student loan that allows students to take out a loan they won't have to repay until they finish their degrees. This particular student loan often comes with a special lending rate and the ability to defer school payments anywhere from a few months up to 5 years after finishing classes. Some loans allow students to borrow as much as $20,000 a year on this plan.
- HELP Loans - The government also helps by providing student loans known as "Paying for your studies" or "HELP" loans for short. These loans are strictly for higher education for students in Australia provided by the Dept. of Education in Australia. Individuals that qualify include students currently paying tuition that do not receive assistance from the Commonwealth currently that need a contribution to help pay the cost of courses they take and plan to take. This new student loan actually replaces several other student loans including PELS (postgraduate education loan scheme) and OLDPS (open learning deferred payment scheme).
- Personal Loans - Personal loans, like that offered by the Commonwealth Bank of Australia, may also help some students pay for college. While not always the best choice, many students apply to pay for part of the cost of tuition or housing. Some banks have personal loans that mimic student loans. Many students can apply with their parents consent to have a lower interest loan. This can help students that only receive partial support from the university they plan to attend. For many students this is a lifesaver.
- Mutual Funds - Some parents decide they will set aside money when they first have their children. These wise parents invest in special funds that collect money especially for children. Talk with your financial planner to see if there are student loan type funds you can invest in and borrow from once your children reaches 18 so they have the money they need to attend university.
If you haven't checked already, there are literally thousands of resources online you can review to discover more information on student loans. You may even find financial support in your home town. The best step students can take is learning about student loans as early as possible. If you are a parent with a young child, setting up a savings account early in your child's life could make a huge difference when your child grows into a young adult preparing for college.
What about Scholarships?
Grants and scholarships are another way to help fund a college education. These are not the same as student loans however. There are now interest rates. Unlike student loans these are funds a student does not have to pay back. Often they are awarded based on merit or skill, or for financial need. If you plan to apply for grants or scholarships you have to apply early because the competition is fierce.
For student athletes talent scouts often come to the schools to meet young aspiring athletes and performers. If interested in these types of financial aid along with student loans be sure to consult with a counselor at your educational facility as they can get students started in the right direction.
Any combination of loans, grants, scholarships and other tuition assistance is likely to benefit students in the long run. Some students will even take up work study programs to afford college. Just be sure you start applying as soon as you can so you don't miss the early bird deadlines.
What to do next
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