An Education Loan, generally speaking, is an investment in your education. While a loan means acquiring a debt, to view it as such is erroneous, as the money is being borrowed to learn new information and skills that could potentially lead to a brighter financial future. Education is an investment in yourself, so no matter what means you use to finance that investment, the outcome will likely be a positive one.
If you’re wondering what the criteria are for a student or lending for educational purposes, you’re in the right place. While there is no absolute set of rules or criteria for borrowing money for education, as lenders can vary and so can Education Loans, there are certain things you’ll want to be aware of before applying for finance. This way you’ll have a far better understanding of education loan eligibility, so your chances of approval are increased exponentially.
Keep in mind that criteria can vary depending on the type of loan you apply for and the institution from which you’re borrowing the money.
You Must Be 18 Or Over
You can’t be approved for finance in Australia unless you are at least 18 years of age. Anyone who is younger than 18 will need to acquire the funds through an adult applicant, such as a parent, sibling or guardian. People under the age of 18 may be able to obtain finance with a guarantor. Check this with your lender.
A type of Education Loan that is exempt from age constraints is one offered by the Australian Government, such as HECS, for example. In this instance, even a 17-year-old student can apply for a student loan without the need for a cosigner. Another great thing about Australian Government student loans is there are generally no age restrictions. You can be 60 and still apply.
Healthy Credit History Helps
No matter what type of finance you may choose to apply for, having a healthy credit score and credit record will always help your cause. The same applies to Student or Education Loans of any description.
If you’re a young student, you probably haven’t even had a chance to establish a good credit rating. However, having no credit history is still generally better than having a history of bad credit. With no credit history to speak of, you may be required to have a cosigner on your loan. It really depends on the loan and the lender offering the education loan.
If you’re uncertain about anything, just contact the bank, building society, private lender or government department and ask questions.
You Will Need To Have a Source Of Income
Unless the Education Loan is a loan provided by the Australian Government (such as HECS), where you can start repaying the borrowed funds after you complete your studies and land paying employment, you’ll need to be able to prove that you have a steady source of income. In other words, demonstrate that you have the capacity to repay the loan.
This proof could be in the form of several recent payslips from your regular job or, if you happen to be self-employed or operate a business, financial details provided either by you or your accountant that show your business brings in regular income.
Proving Your Identity Is a Must
In order to apply for or get approved for an Education Loan (or any type of finance), you must be able to prove that you are you. ID is a prerequisite to obtaining finance from all lenders. Valid ID can include things like:
- Drivers license
- Full birth certificate
- Citizenship certificate
- Medicare card
- Proof of age card
If you can’t prove your identity, you won’t be able to apply for finance.
You Must Be An Australian Citizen Or Permanent Resident
The reason you need to be able to prove your citizenship or residency status is lenders want to know you’re not a flight risk, for one. If you’re a tourist or visiting student, there’s a chance you could simply leave the country with your student debt unpaid.
Talk To Cashify About Financing Your Education
If you need finance to help fund your education, then speak with the experts at Cashify. We have loans that we can tailor to your educational needs, with very competitive interest rates and fast approvals. Apply online now for an Education Loan with Cashify.
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.