Personal Loans for Students

Need a personal loan to cover your study expenses? Compare student personal loans here with Savvy.

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Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on July 4th, 2024       

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Getting a degree or extra qualifications is a valuable investment in your future, but balancing the cost of education with daily living expenses can be tough. If you’re a student in need of financial support during your studies, you might want to consider student personal loan. If you’re not sure where to start or what you could qualify for, Savvy can help. We can compare offers from dozens of lenders to see if there is a loan to suit your circumstances. Get started with a free quote today!

What are personal loans for students and what do they cover?

A personal loans for students – also known as an educational expenses loan – is a personal loan product designed to provide financial support to help you cover costs you might face when undertaking further or higher education. While you may be eligible for government assistance in the form of a HECS-HELP or FEE-HELP loan or have been offered a Fee-Free TAFE or VET place, these only cover tuition fees – leaving you responsible for paying your other education-related and living costs. These can include:

  • Textbooks and other study materials
  • Laptops and computers
  • Student accommodation
  • Food and bills
  • Transport
  • Clubs and extracurricular activities

You can also use a personal loan to cover the fees for courses where government assistance is not available or you are not eligible.

Student loans work the same as any other personal loan. They provide you with a fixed amount of money, usually between $2,000 and $75,000, which is provided as a lump sum. You must then repay the borrowed amount in regular instalments over a set period of one to seven years, with fees and interest incurred along the way. While you might take out the loan for the purpose of paying for your education, there are generally few restrictions on how you use the funds and you can spend the money any way you choose. 

How do I get a student personal loan?

When applying for a personal loan, you will have to meet certain criteria. Typically this involves: 

  • Being at least 18 years old
  • Being an Australian citizen or permanent resident
  • Earning or receiving a certain amount in income each year
  • Meeting credit score requirements

As a student, especially a younger one in full-time education, you may struggle to meet the latter two requirements. Consequently, your borrowing options may be more limited – as lenders perceive you as a higher risk, they may only approve you for smaller loan amounts with higher interest rates, if at all.

One way to get around this is to take out a personal loan with a guarantor. With this type of loan, someone, such as a parent, agrees to guarantee the payment of your loan. This means that if you fail to make your repayments, your guarantor will take on the responsibility until it is fully paid. It’s important to be aware that you will need to start repaying your personal loan as soon as you take it out and won’t be able to postpone repayments until the end of your studies.

Other ways to improve your chances of approval include:

  • Exhibiting good financial behaviours: lenders will want to see that you're financially responsible, save regularly and don’t overdraw your account. This is particularly important if you have no credit history.
  • Requesting a smaller amount: the less you borrow, the more affordable the repayments will be. As such, make sure you apply for only the amount you need.
  • Providing security: secured loans present less risk to the lender, so are easier to get to get and have lower interest rates. They require you to put up a major asset (like your car), though, which can be repossessed if you miss repayments.

How else can I cut costs as a student?

Being a student often means managing a tight budget. To help you make the most of your finances, here are some additional cost-cutting tips:

  • Set a budget: create a budget and track your expenses to ensure you’re spending within your means.
  • Choose a subsidised course: Commonwealth Supported Places (CSPs) are government-subsidised university courses available to eligible domestic students. CSPs generally have lower tuition fees compared to full-fee-paying courses, making higher education more affordable.
  • Apply for government assistance: while HELP loans only cover tuition, you may also be eligible for government assistance programs such as the Youth Allowance, Austudy or ABSTUDY. These programs provide financial support to eligible students to help cover living expenses while studying.
  • Look at scholarships: research scholarships offered by universities, government, private companies and nonprofit foundations. There is a wide array of scholarships available for various criteria, including academic achievement, financial need, extracurricular involvement and specific fields of study.
  • Work part-time: working part-time while studying can help you cover living expenses and reduce reliance on student personal loans. Look for part-time job opportunities on or near campus that offer flexible hours to accommodate your class schedule. Consider positions in retail, hospitality, tutoring, or administrative roles within the university.
  • Investigate university loans: some universities offer long-term, loans or financial assistance programs to help students cover educational expenses and accommodation costs. Unlike other forms of finance, there loans may also be available to international students.

Can I take out a personal loan to cover my child’s school fees?

Educational costs aren’t limited to further education. You can also take out a personal loan to help cover your child’s school fees or any other costs related to their learning. Whether your child is in public schooling or being educated in the private system, the cost of education in Australia is on the rise. It now costs an average of $92,710 for 13 years of government schooling, $195,074 for Catholic schools and $316,944 for independent schools – which works out at around $7,132, $15,006 and $24,380 a year respectively.

Many schools will offer payment plans to allow parents to spread costs like tuition fees across the year. However, if you’re struggling to pay school fees in the short term, require a device for schoolwork or need help covering back-to-school costs like uniform, a personal loan can help you bridge the gap. The process is quick, easy and entirely private – the school will not be alerted that their fees are being paid with a personal loan and you are under no obligation to tell them.  

Types of personal loan

Unsecured personal loans

With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.

Secured personal loans

Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.

Variable rate personal loans

Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.

Fixed rate personal loans

Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.

Debt consolidation loans

If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can not only make them more convenient to manage but also potentially save you money overall.

Travel loans

Looking to take off on a holiday with your family but want to pay it off at your own speed? Travelling can be expensive, so you can distribute the cost of your next trip over a period you’re more comfortable with by taking out a personal loan to pay for it.

Wedding loans

There are so many costs that go into making your dream wedding a reality, from venue hire to catering to dresses and suits and so much more. By taking out a personal loan, you can start planning the big day you want, even if you can’t pay for it upfront.

Renovation loans

Home improvements are desirable for a range of homeowners to help keep their living space fresh and interesting, not to mention increase its value. You can get past the financial hit of renovations with a personal loan paid in instalments.

Self-employed loans

Personal loans aren’t limited to PAYG employees, though. If you’re running your own business, you can still be approved for financing by submitting tax returns and other alternative documents instead of payslips and utilise your funds however you wish.

Student & education loans

There’s a variety of expenses which come with being a student, ranging from the cost of your courses, textbooks and computer to your accommodation. Taking out a personal loan can make these costs more manageable by spacing them out.

Green loans

Some lenders offer green personal loans, which are designed to be used for energy-efficient appliances and products such as solar panel and air conditioning installation in your home. You can qualify for lower interest rates and fees with this loan.

Why compare personal loans through Savvy?

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100% free

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Paperless applications

You won't need to worry about sifting through documents and visiting the post office, as they can all be submitted online.

A Range of Options

Reputable lending partners

We've partnered with personal loan companies you can trust to ensure your comparison is a high-quality one.

The pros and cons of student personal loans

PROS

Immediate financial support

You could receive funds to cover essential educational and living expenses within 48 hours of applying.

Flexible use

Personal loans don't typically specify what you have to spend the funds on, leaving you free to spend it as you choose.

Credit building

Repaying your loan on time can help to build your credit score, which will help you down the line when you next apply for finance.

CONS

Interest and fees

You will have to pay interest and in some cases additional fees on your personal loan, which can significantly increase the cost.

Repayment pressure

You will have to make regular repayments from the start, adding financial pressure while studying.

Limited eligibility

Students with limited income or credit history may face higher interest rates or smaller loan amounts, or could have their application denied.

How do I choose the right student loan?

Common questions about personal loans for students

How do I know if a loan is affordable?

A loan is considered affordable if you can comfortably meet the repayment schedule. As such, you should look at the repayment amount and work out if you can make it work long-term. To be really sure, try saving that amount for a few months and see how it impacts your lifestyle.

Can I access funding to cover me until I complete my studies?

Yes – whether you're doing a year course or completing a long degree, you can take out an amount and use its funds for any study-related reason you like (or non-study-related reasons).

I’m an international student – can I still get a student loan?

Probably not – most lenders will require you to be an Australian citizen or permanent resident to take out a student loan. In general, lenders won't accept applications from those living in Australia on a student visa, so this closes off the ability for you to get a loan in this position.

I’ve never taken a loan out before – can I still get a student loan?

While having a good credit history can help you get a loan, it is possible to find finance without one. In fact, many loan providers are more flexible on their credit history requirements. However, you should make sure you meet all of the lender’s requirements before applying. 

Also, if you are given a loan, make sure you make all of your repayments on time and in full. This will help you build a good credit rating and should make getting loans easier in the future.

Most of my income come from Centrelink – can I still get a student loan?

Most lenders will want to see that you’re receiving some form of income. While many will want to see income from stable employment (e.g. a part-time job), others may accept support payments as income. 

Can I get financing for short courses?

Yes – if you are studying on a short course or are a part-time student, you can still apply for a personal loan to cover your education costs. If you are working alongside studying, you may even qualify for better rates as lenders will see you as less of a risk.

Can I buy a car with my unsecured personal loan?

While you can use your personal loan any way you choose, if you want to buy a vehicle as a a student you will likely get a better deal by taking out a secured car loan. Because the car is put up as collateral, reducing the risk to lenders, you may benefit from lower interest rates on your loan.

Should I use a credit card to pay my education expenses?

Some Australians may choose to use their credit card to pay off small educational expenses such as purchasing a computer, books, or other technological equipment that will help them with their studies. A 0% interest rate credit card can help lower initial costs if paid off on time. However, using your credit card to swipe for unnecessary costs that could have been saved up for can increase your chances of defaulting which can negatively impact your credit report and affect future borrowing.

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