Australia, being one of the top three study overseas destinations is a home to some of the world-renowned universities because of which every year thousands of overseas aspirants apply to these universities for pursuing their higher education. The cost of education in Australia is expensive as compared to that of other study abroad destinations. Hence, majority of the students apply for an overseas education loan to fund their degree in the Australian University. However, only few students become successful in getting their education loan due to various finance-related issues.
Australia is one of the most expensive countries when it comes to pursuing higher education. The cost of education in Australia depends on various factors like the chosen course, chosen institution, duration of the program etc. However, to put it in numbers, the average tuition fees at any of the Australian university ranges between AUD 25,000 to AUD 35,000 per year. In case of the high ranked universities, the tuition fees can go up to AUD 45,000 as well.
To fund an international degree to study in Australia, study abroad aspirants can opt for self-funding, education loan, personal loan, deposits in savings account and fixed deposits provided it should be approved under RBI guidelines.
1. Self-funding: Students willing to pursue their higher education from an Australian University can go for self-funding. They can use their own finances such as savings or fixed deposits to fund their international degree in Australia. This is one of the convenient options for the students whose parents have saved for their child’s education.
2. Secured Education Loan: International study overseas aspirants can opt for secured education loan for studying in Australia and finance their higher education. In fact, the Australian Embassy majorly favours students borrowing secured education loan from the nationalized banks.
3. Unsecured Education Loan: To fund an Australian Degree, students can also avail an unsecured education loan from acceptable banks such as nationalized banks, private commercial banks or Regional Rural Banks (RRBs), provided they possess a strong financial background with no liabilities on oneself.
4. Personal Loan: Apart from an education loan, a personal loan is another way to fund education in Australia. Students can use it to cover tuition fees and living expenses. Secondly availing a personal loan is much easier than applying for an overseas education loan.
Education Loan for Studying in Australia involves four phases, and it is a crucial part of a student’s study abroad decision. Let us understand the various phases of an overseas education loan process to study in Australia:
Phase 1: Apply for the chosen course and the university to study in Australia.
Phase 2: Receive the confirmation of admission from the respective university and start arranging for the required funds. Students can apply for an overseas education loan on the receipt of conditional/unconditional offer letter from the university or college.
Phase 3: Pay the tuition fees to the university and receive the eCOE (Confirmation of Enrolment) from the respective universities.
Phase 4: Proceed for the visa process.
In these four phases of an Australian overseas education loans, the most important phase is after receiving an admission letter from the respective university, aspirants are required to deposit the tuition fees of the first semester to the university account along with the health insurance charges. After making payment to the University, student will receive the eCOE (Electronic Confirmation of Enrolment). Based on the eCOE, the student can process an online application for eVISA. An eCOE is an Electronic Confirmation of Enrolment which is issued by Australian education provider and is the only accepted evidence of enrolment for processing of the student visa applications.
Applicants are also required to show the living expenses of one-year into the student saving account. The one year living expenses in Australia as per immigration rules is A$ 21,041. So before applying for visa, students must show living expenses from an education loan account, or from their parents’ liquid funds in the saving account or in the form of fixed deposit with banks.
Hence, it is advisable to the aspirants to apply for an Australian education loan by paying attention to the time span required for the entire process.
To get a fee payment approval from an Australian university, applicants applying for 2 to 4 years of degree courses are required to show funds covering their first year’s tuition fee, first year’s living expenses, OSHC (overseas student health cover or insurance) and travel airfare. However, for lodging student visa, this requirement will come down to showing only second semester tuition fee (since the first semester’s tuition fee is paid during the eCOE process), one-year living expenses i.e., AUD$ 21041 and airfare of AUD$ 2000.
It is recommended to the students that they should begin arranging for the funds as soon as they receive the admit letter from the university. The education loan for abroad studies process from a government financial institution takes up to 30 to 40 days after the submission of the required and necessary documents. The complete time required in an overseas education loan process can be summarized as follows:
1. Arranging for the relevant documents and applying for an overseas education loan: 1 to 2 weeks
2. Processing for Valuation Report and Search Report: 1 week
3. Processing and sanctioning of Education loan: 2 weeks
4. Process of Mortgage Creation: 2 to 3 working days
After the process of mortgage creation, the overseas education loan amount is disbursed to the university’s account or in the student’s savings account.
Australia, being one of the most sought-after overseas education locations for higher education by international students and most of the students prefer to fund their higher studies with the help of education loans. While applying for an overseas education loans, students should consult education loan experts as the Australian embassy has specific criteria relating to the funds that are set for international students.
At ELAN Loans, we have an expert team who assists students in the entire process of applying for student loan for studying abroad. Right from guiding you for the overseas education loan process, applying at the bank, sanctioning of the loan letter to coordinating with the financial institution. Hence, get in touch with us at ELAN Loans and we shall assist you in your entire overseas education loan process for Australia.