Students need money just like everyone else. Money for study, living expenses, travel and more. As a student, if you are struggling for cash flow to pay for your course, or simply just to survive, where can you get some extra cash to see you through?
Aside from finding a part-time job, another option would be a small personal loan. Can you get a personal loan when you’re a student though, and even if you can, are their restrictions on what the money can be used for?
In this post, you’ll discover what your options are regarding personal loans and whether it’s a practical solution for your circumstances.
Personal Loan & Education
Anyone looking to undertake any form of study will need money to pay for their tuition and other related expenses. Often the need to borrow money and education go hand in hand, which is why schemes such as the HECS scheme exist for university students.
Lending institutions will often have specialised personal loans designed for people seeking further education and training. Private lenders are one sector of the finance industry that has really stepped up to the plate to help people out with personal loans for furthering their training goals.
If you’ve been asking the question, ‘can I use a personal loan for education?’, with a personal loan from a private lender you most definitely can. Lenders will vary in what they offer, but many have options for education loans, as well as general personal loans and even pawn loans.
You have options as a student when you shop for loans in the private lending sector.
Are There Restrictions On What You Can Use the Money For?
Once again, this can vary depending on which lender you apply for a loan with, but as a general rule, there are many ways to use personal loans. Even loans that are designed for educational purposes and pursuits will allow you to spend the cash on whatever you need. All you have to do is honour the terms and conditions of the loan and pay it back in full over the determined length of time.
So, what can you use a personal loan for?
Let’s quickly list some possibilities:
- Paying your course/education fees
- Buying a laptop
- Purchasing textbooks
- Course-related materials
- Travelling expenses
- Living expenses
- And more…
As you can see, there is loads of flexibility attached to an education personal loan. You are not very restricted in using the money for whatever you require.
What About Loan Eligibility? Is There Strict Criteria?
In order to apply for a personal loan of this type, you need to have some form of employment. If you’re a student, you’re not expected to be working full time in order to apply. A part-time job is fine. So long as you earn enough and have enough money left over after expenses to be able to repay the loan, you should be fine to apply and likely be approved.
You will need to be 18 and above to apply for finance and you must also be an Australian citizen or permanent resident. Along with this criteria, so long as you can prove your ID, you’ll be good to go.
How Much Can You Borrow?
One really positive aspect of seeking loans from private lenders is they’ll allow you to borrow amounts much smaller than the minimums the banks offer. Generally speaking, if you got a personal loan from a bank, it’ll be at least $5,000 and upwards.
On the other hand, private lenders tend to start their minimum loan amounts in the hundreds of dollars and usually you can borrow as much as $5k-$15k, depending on the lender.
For many students, just $1,000 might be enough money to make a huge difference. There’s no point borrowing way more than you need, as you’ll only have more to pay back more, including extra interest.
Personal loans are unsecured loans, so there’s no need for any collateral to apply for one.
Cashify Loans offers some of the best terms on personal loans in the business for students. With transparent and simple terms and conditions, combined with low-interest rates, make Cashify your first choice when shopping for a personal loan for education.
Disclaimer: Please note this content is of general nature only and does not take into account your personal objectives, financial situations or needs. For advice tailored to your financial situation, it is advised that you seek guidance from an accountant or financial advisor. The information contained in this article is correct at the date of publication.