Long-Term Loans
Up to $4000 may be borrowed in any year, with a $5000 maximum amount for outstanding loans. Long term loans will be considered for course costs, accommodation, living costs (including rent or board) and any other necessary expenses. Interest is not charged before the agreed repayment date; in most cases, after the period of the student's current course. Long-term loans require a suitable guarantor. If the guarantor is a citizen or permanent resident of Australia, repayment is usually required once a student completes, or withdraws, from their current course. International students will usually be expected to repay their loan before the completion of their course.
• Assessment
• Guarantors
• Repayment terms
• Interest Rates
• Outstanding Debts
• How to Apply
Assessment
Applications for long term loans are assessed by the Student Loans Fund Committee on the basis of financial need. Particular consideration is given to:
• personal income and expenditure, and,
• parental / family income - for students less than 25 years old.
As part of the loan application it is necessary to provide a detailed budget of income and expenditure for the year. Academic results and course progress will also be considered with the application.
Usually, it is expected that students commencing a course will have organised their financial situation to ensure they can afford to live and study (except, of course, for unexpected expenses / costs) particularly during their first year. Loans are, therefore, less likely to be approved at the commencement of, or early in a course. If you are assessing whether you can afford to study (particularly on a full-time basis) you should check the Cost of Living Estimates.
top of pageGuarantors
Long-term loans require a suitable guarantor. A guarantor is a person who undertakes (by signing a legal guarantee document) to repay the debt if the borrower is unable to repay the amount. The guarantor accepts the obligation for repayment of any outstanding amount in the event of non-payment by the borrower. In order to be considered for a long-term loan you must nominate a guarantor who is:
• over 21 years of age
• a citizen or permanent resident of Australia (** see exception)
• financially able to guarantee repayment of your loan (in full-time employment, or owner of significant assets (for example, a house)
Who can be a Guarantor?
• Parents
• Relatives
• Friends
Who can't be a Guarantor?
• Spouses and house-mates
• Current debtors with their own long-term student loans
• Members of staff of the University or affiliated colleges
• Students (from any university / tertiary institution)
Note: Proof of the Guarantor's income, home ownership or other assets will be required.
** Exception: A loan application will still be considered if the nominated Guarantor is not a citizen or permanent resident of Australia. However, if such an application is approved, it is important to note that the repayment requirements are different.
Repayment terms
Australian Citizens and permanent residents of Australia
Usually no repayments are required until the student either completes or withdraws from their current course (including honours if applicable), or takes leave of absence more than once. At the time a loan is approved, a repayment plan is determined. The amount expected in monthly instalments will be determined by the total amount of the loan. It is expected that a $3000 loan will be repaid over a 24 month period, and a $2000 loan will be repaid over 18 months. Early voluntary repayments can be made at any time. Variation to an agreed repayment plan because of difficult or changed financial circumstances will be considered only in cases where evidence is supplied eg. proof of current Centrelink assistance & a current financial budget.
Student and guarantor are not Australian citizens or permanent residents of Australia
It is recognised that international students who have been in Australia for a only a short time may have difficulties finding an Australian guarantor. In such cases an appropriate guarantor from the student's home country will be considered. Repayment may commence immediately, and the loan must be fully repaid by the agreed date prior to the completion (or discontinuation) of the current course.
Early Repayment
In some cases, the Committee may approve a loan on the condition that an early repayment date is set (for example, by a date later in the current year).
Interest rates
Loans are interest free until the initial agreed repayment date. Interest is charged on the total amount of any overdue instalments. Late repayment and other contract breaches will attract interest. Students may take leave of absence from their course for up to 12 months interest-free if agreed by the Loans Committee.
Outstanding Debts
Any debts to the University (such as short-term loans, late enrolment fees, library fines etc.) will automatically be deducted from a long-term loan.
How to Apply
It is essential to complete a loan application. Forms are also available from Student Financial Aid.
Students who are seeking a loan for travel costs must also complete a travel budget.
Adobe Acrobat Reader is required to view the application. If you do not have Acrobat Reader , you can download it for free.
If an application is lodged at Student Financial Aid by Thursday noon (12:00), the committee's decision will usually be known by Friday in the same week.
You may visit the Student Financial Aid in the Baldwin Spencer Building (after your enrolment is confirmed) for more detailed advice, an application form and an appointment with one of our financial aid advisers. Alternatively, telephone: 03 8344 6550 to arrange an appointment