Financial Aid for Australian Citizens
Each University has different sums that a student can borrow for long term loans. Long term financial aid loans are for the following uses:
- Class costs
- Living costs
- Other school related costs
Applicants for Financial aid are looked at by a University Student Loans fund committee. The University Fund committee looks at a student personal income and well as his or her parent’s income. Many universities also require the student to submit their expenditure for the upcoming school year. Academic results and school progress will also be a factor that the Student Fund Committee will tally to their criteria for obtaining a student loan.
It is important for prospective students to be well devised with their financial budgeting and future prospect.
Australian Universities require all students to provide a guarantor. A guarantor is somebody who takes full responsibility to repay the debt of the borrowed loan if the student is not able to repay the loan amount. A guarantor must be at least 21 years of age and must have full time employment or hold enough assets to compensate off the loan. Guarantors can be: Parents, Related Relatives and Personal Friends.Guarantors will need to provide the following information:
Students that are Permanent residents and/or Citizens of Australia:
- Proof of the Guarantor's income
- Home ownership and/or car ownership
- Other assets
- Repayment details
Repayments are required when the student completes or decides to withdraw from their school classes. When a loan is granted to a student, a repayment plan is put into place and includes a repayment start date and the anticipated monthly payments along the long term loan.
The significant thing about financial assistance from Australian Universities is that Loans granted to students are interest-free up to the agreed upon repayment date. Interest is charged to a student total amount of an overdue payment.
How to Apply for Financial Aid
Every University has their own way to apply for financial aid. Contact the prospective University by phone for more information or go the Universities website and locate financial aid and/or loan information sections.
Federal Financial Aid
Many Australian universities participate in the US Federal Government loan programs. Types of Loans
The Federal Family Education Loan (FFEL) program has three major categories, including Stafford Loans, PLUS Loans, and Consolidation Loans.
The Stafford Loans are for undergraduate and graduate students, and fall into two groups:
- PLUS Loans are for the parents of undergraduates.
- Grad PLUS loans are for graduate students.
- Consolidation Loans combine multiple loans into one loan.
- Subsidised: Students must demonstrate financial need to qualify for the subsidised Stafford Loan. The federal government, on behalf of the borrower, pays the interest that accrues while the student is in school, during authorised deferment periods, and for six months after the student ceases to be enrolled at least half-time. The borrower begins paying the interest when the loan enters repayment.
- Unsubsidised: Students are not required to demonstrate financial need to qualify for the unsubsidised Stafford Loan. The borrower must pay all the interest that begins to accrue immediately upon disbursement regardless of enrolment status or loan deferments. Interest can be paid monthly or quarterly or be capitalised (added to the principal balance).
Eligibility RequirementsTo be eligible for a loan:
Stafford Loan Limits
- Be enrolled or accepted for enrolment at least half-time in an eligible degree or certificate program at an eligible institution.
- Have a high school diploma or its equivalent.
- Be in good standing and making satisfactory academic progress if currently enrolled.
- Be a citizen, permanent resident or eligible non-citizen of the United States.
- Not be in default or owe a refund on any federal education grant or loan unless satisfactory arrangements have been made to repay the outstanding debt.
The US federal government has set annual and aggregate limits on the amount of money a student can borrow under the Stafford Loan program. A student may receive a subsidised loan, an unsubsidised loan or a combination of the two for each academic period.
However, the total amount of all the Stafford Loans may not exceed the loan limits for the academic period. This total amount is calculated on the student’s dependency status, grade level and length of the program of study that the student is enrolled. An academic period may be one semester, two semesters or three semesters. Most Australian universities are on a two-semester system.PLUS Loans
PLUS loans are federal loans that graduate or professional degree students and parents of dependent undergraduate students can use to help pay education expenses. To receive a Direct PLUS Loan, you must
- be a graduate or professional degree student enrolled at least half-time at an eligible school in a program leading to a degree or certificate, or be the parent (biological, adoptive, or in some cases, step-parent) of a dependent undergraduate student enrolled at least half-time at a participating school; and
- Meet the general eligibility requirements for federal student aid. If you are borrowing on behalf of your child, your child must also meet these requirements.