Do Australian Banks Offer Student Loans?
Studying in Australia can be an empowering experience that prepares you for a future in the workforce and may help you achieve your dream job. Let’s understand what options are available to help Australian students pay for their education.
Overview
How do Australian students fund university course fees?
In Australia, some banks may provide loans to cover university course fees. Banks may offer education loans that cover the cost of tuition and the cost of all the equipment you need. Education loans are essentially a personal loan that may be either secured against an asset, like a vehicle, or unsecured.
The Australian Government offers students who are Australian citizens a HECS-HELP loan that will be repaid once the student is employed and earning above the threshold income.
In Australia, there are two ways to pay for university:
Pay the course fees upfront
Take out a HECS-HELP loan, which you will repay once your income reaches a pre-determined threshold.
What is HECS-HELP?
The HECS-HELP is a loan directly from the Australian Government that covers the cost of tuition fees, paying the university directly and accruing the loan amount to your taxation account. In this way, the Australian Government will pay for your education, allowing students to pay the debt back in the future.
In 2025-2026, repayments for the HECS debt are required once you earn more than $67,000. However, you may choose to make voluntary contributions toward their debt to reduce the size of the loan.
The HECS-HELP loan has a system called Indexation that is similar to interest. The total loan amount will have a percentage increase added from June 1st every year. Indexation is used to reflect the change in the cost of living and is adjusted with inflation each year.
Eligibility requirements for HECS-HELP
Am I eligible for HECS-HELP?
To be eligible for a HECS-HELP loan, the Australian Government has set criteria that must be met:
Be studying in a Commonwealth Supported Place (CSP)
Meet the citizenship and residency requirements
Submit the request for Commonwealth assistance form to your provider by the census date
Have available HELP balance
Have sufficient Student Learning Entitlement available
Be assessed as a genuine student and as academically suitable for your unit(s) of study
Not undertake more than two years’ worth of higher education study in 12 months unless your provider has approved you to take on more.
Can students get a loan to cover other expenses?
Getting a personal loan to cover other education expenses
Course fees are only part of the cost of attending university — albeit a large part! The course fees don’t cover other aspects of study like a laptop, textbooks, transport or trips and excursions
While a student might not need a personal loan to cover the tuition, if working part-time doesn’t allow enough savings to afford these study necessities, taking out a personal loan can help to spread the upfront cost across smaller repayments.
If you decide to take out a personal loan to help purchase items like textbooks or laptops it is important to compare interest rates and understand the fees involved.
What do I need to be eligible for a personal loan?
To be eligible for a personal loan you must meet the following criteria
At least 18 years of age
An Australian Citizen or permanent resident of Australia
In receipt of regular income and able to afford personal loan repayments
Get A Personal Loan With Broken Hill Bank
Broken Hill Bank understands how important tertiary education is to secure a career path and reach your earning potential.
Whether you are looking for a personal loan to help you get those essentials for university or need more information, contact us or become a Broken Hill Bank Member today!
FAQ
Do Australian banks offer student loans?
In Australia, the government provides a loan called HECS-HELP to cover the cost of tertiary tuition. You start repaying this loan through the tax system when your income reaches $67,000 AUD (2024-2025).
How to get a student loan in Australia?
If eligible, you can apply for the HECS-HELP loan as part of your application process with the university. This covers your tuition fees, if you need a loan to cover other expenses then you can apply for a personal loan.
Is HECS a student loan?
HECS-HELP is a student loan from the Australian Government. The HECS-HELP loan allows people to study at university without having to pay course fees out of pocket.
People also read:
The content in this blog is intended for general informational purposes only and does not take into account your specific financial goals, circumstances, or needs. While we strive to provide accurate and relevant information, it should not be construed as financial, investment, or professional advice.
Before making any financial decisions or taking action based on the information provided, we encourage you to evaluate its relevance to your individual situation. Broken Hill Bank recommends consulting with a financial professional for advice, you can contact us directly to discuss your unique situation and receive tailored guidance.