Most would agree that education is super important. But it comes at a cost. While you may get a loan for higher education studies with repayment options post-employment, the fact is that these take a long time to process.
However, you can still get a quality education by pursuing other financing options. This article will discuss those options below. But let’s start by appreciating the uses of student loans.
Uses of student loan money
If you do get a student loan, you can use the money for various purposes, including:
1. Tuition fees
The most obvious and biggest expense you should expect is the tuition fee, no matter where you go to school. It is the price you pay for taking classes at your school. The amount can vary depending on your academic program and the institution you study in.
In Australia, the tuition fee for tertiary institutions ranges from $4,000 to $37,000 annually. So, applying for a student loan can help you finance your tuition fees and ensure you don’t miss a class.
2. Transportation costs
Transport is one of the areas where students shell out a lot of money. This is particularly true for those who live off-campus. Whether you commute to school or take the occasional trip home, travel costs can be pretty high and cause a lot of financial stress.
Even with most Australian cities offering student discounts on travel costs, you can still rack up quite a bill. A student loan can help you foot the bill for all transportation costs you incur while in school.
3. Accommodation costs
There are two options available for accommodation in tertiary institutions: staying on or off-campus. Usually, if you stay on campus, you get a package deal that includes your meal costs and laundry, among others.
However, if you decide to live off-campus, other options are renting on your own or shared accommodation. The downside of these is that they lack the convenience of university-affiliated facilities. You need to think of costs like furniture, bond, gas, electricity and internet access. So, staying off-campus can be pretty pricey.
A student loan can help you foot the bill for your accommodation needs to allow you to study as comfortably as you can.
4. Stationery and Electronic supplies
Today’s students need more than just books and stationery. You need laptops, smartphones, and so on. Throughout the academic year, you may have to buy some form of stationery depending on the needs at the time. These expenses can strain your finances, especially if you’re unprepared. Having a student loan could come in handy to ensure you don’t miss out on anything.
5. Personal expenses
These include laundry, phone bills, food, and anything else you usually spend money on. While these expenses depend on the type of lifestyle you choose for yourself, more often than not, you may find that they can add up quickly. A student loan can help you take care of such.
3 Ways for Students to Get Money Quickly
Higher education is an investment that pays off in the long run. However, it can be a financial burden for many students. Luckily, there are several sources of funding for students, including:
1. Federal student loans
The student loan system is called HELP (Higher Education Loan Program) in Australia. The government offers financial aid to students to fund their education. These loans are usually interest-free. However, indexation is added to the debt on 1 June each year. The 2021 indexation rate was 0.6%.
According to the Australian parliament, the average outstanding amount for students with HELP stands at $23, 685. How much you can borrow depends on things like your education level and the program you’re studying.
2. Family and other sources
The biggest source of financial aid for students is family and close relatives. Family and even friends are often willing to contribute money for your education. Sometimes, all it ever takes is just asking. But not everyone has a network of people willing or able to help.
Crowdfunding is also an option. This is the practice of raising funds from multiple individuals or sources to finance a project, in this case, your education.
Nowadays, it’s typically done via the internet, where someone sets up a go-fund-me page. The downside is that it takes a lot of effort to get your page enough interest, so you get enough contributors.
3. Personal loans for students
Last but certainly not least, we have personal loans. The great thing about this option is they can be fast and simple to obtain, so that’s why they are popular. Usually, they come in the form of secured and unsecured loans.
Secured loans require collateral, while unsecured loans don’t. Since unsecured loans don’t require collateral, they are usually easier and faster to set up. Personal loans are an excellent option for students who cannot meet all their school expenses.
If you find yourself in a sticky situation with your studies, you’ll be happy to know that Credit24 offers loans for students of up to $10,000 at reasonable rates. The application process is fast and easy, making it all the more convenient for you. There are no hidden costs and fees, so you avoid nasty surprises.
Before applying, you can know exactly how much the repayments will be and how much you’ll owe over the lifetime of your loan. Use our loan calculator to see this upfront. Visit www.Credit24.com.au for more information.