- Students can sometimes get personal loans (secured, unsecured, guarantor), but approval and rates depend on income and credit history.
- Students may consider other financial support alternatives, such as Student Start-up Loan, no-interest loans (NILs), and Centrelink payments.
- A HECS-HELP loan generally covers course fees; textbooks, laptops, and living costs are not included.
Student life can feel like one long budgeting challenge. You’ve got textbooks and laptops to pay for as well as all the “fun” stuff like rent, bills, and groceries, not to mention trying to scrounge enough money for those festival tickets or Sunday arvo hangouts at the pub with your mates.
So if you’re currently finding it hard to afford course fees and living expenses, know that financial assistance is available for students in Australia. This article outlines the various options, including student loans (HELP), personal loans, car loans, and government and community support.
Student loans in Australia: What is HELP?
In Australia, the main “student loan” system is the Higher Education Loan Program (HELP). If you’re eligible and studying in a Commonwealth Supported Place (CSP), you can generally defer your course fees and repay the debt later through the tax system.
Is HELP debt interest-free?
Instead of being charged interest, HELP debt is annually compounded by the national indexation rate. This means the amount you owe increases each year in line with the cost of living, aka inflation.
From June 1 2024, the government moved to cap HELP indexation to the lower of CPI or WPI (rather than CPI alone), with backdated adjustments applying for recent indexation periods.
When do HELP repayments start?
HELP repayments only begin once your income reaches a certain level.
From 1 July 2025, the minimum repayment threshold increased to $67,000 (2025-26), and repayments shifted to a marginal system, so it’s calculated only on the income you earn above the threshold, rather than your whole income.
Legislation passed in 2025 introduced a one-off 20% reduction for eligible HELP and other student loan balances, effective from 1 June 2025 (applied automatically for eligible debts). This means someone with a HELP debt of $27,600 will see around $5,520 wiped from their outstanding student loan.
Read more: How does HECS-HELP work?
Are international students eligible for a CSP/HELP loan?
Temporary visa holders and other international students are not eligible for CSP/HELP, though some universities offer alternatives such as scholarships or emergency support.
Eligibility depends on your citizenship/visa and where you’ll live while studying. For example, Australian citizens generally need to complete at least one unit while living in Australia, while NZ citizens and permanent visa holders generally need to live in Australia for the entire course.
- Take note: A HECS-HELP loan generally covers course fees – not your laptop, textbooks, groceries, or rent. If you need money for living costs, you’ll usually be looking at other options.
Can students get a personal loan in Australia?
Sometimes, yes – but it can be harder than it is for full-time workers because most lenders want to see that you’ve got:
- A steady income (even if it’s part-time)
- Manageable living expenses
- A credit history that doesn’t raise red flags
Students who get approved for a personal loan may only qualify for a smaller amount or a higher interest rate than someone earning a full-time salary.
- Quick tip: If you’re an international student and need financial assistance, your first port of call should be to ask your educational institution what financial help you may be eligible for.
Personal loan options for students
If you’re a student who needs extra financial assistance, these personal loan options could help you:
Secured personal loan
A secured personal loan is a loan secured against something you own, like a car. The lender uses this asset as security for the loan in case you’re unable to make the repayments.
Pros:
- Lower rates than unsecured personal loans
- You may be able to borrow more
Cons:
- Your asset could be repossessed if you default
Unsecured personal loan
An unsecured personal loan doesn’t require an asset attached as security. Instead, the lender will review your income, finances and expenses to decide if you’re a safe bet.
Pros:
- No asset is on the line
Cons:
- Rates can be higher because it’s riskier for the lender
- You may not be able to borrow as much
Guarantor personal loan
A guarantor personal loan is backed by a family member or friend who has agreed to cover repayments if you default. A guarantor acts as security for the loan, making it less risky for the lender and may improve your chances of loan approval.
Pros:
- May improve approval odds
- May lead to better rates than you’d get on your own
Cons:
- The guarantor is on the hook if you can’t repay (can strain relationships)
If you’re looking for funds to finance your home while still studying, explore your home loan options here.
Car loans
A car loan is basically a personal loan designed for buying a car. Even as a student, you can apply for a car loan as long as you:
- Are over 18 years old
- Meet residency requirements (varies by lender)
- Have a regular income that supports repayments
Some lenders may have extra lending criteria and may be cautious if your main income is from Centrelink payments (like Youth Allowance or Austudy), but it depends on the lender and your overall situation.
Alternatively, learn ways to save up money for a car.
Medical student loans and graduate loans
Some lenders market specialist products like medical student loans or graduate loans. These are usually personal loans with eligibility rules targeted at certain professions or career stages.
Medical student loans are often offered to students studying medicine, dental, or veterinary degrees.
Graduate loans are typically offered to students to help them pay for post-grad education.
A few things to watch:
- “Special” doesn’t always mean “cheaper”; compare the rate and fees against standard personal loans.
- Some are only available near the end of a degree, or for people who already have a graduate role lined up.
- Loan limits and eligibility change often, so avoid relying on one lender’s advertised maximum.
Alternatives to personal loans for students
Personal loans can be useful, but they’re not always the best first move, especially on a student budget.
Student Start-up Loan (Centrelink)
If you receive Youth Allowance (student), Austudy, or ABSTUDY Living Allowance, you may be able to apply for a Student Start-up Loan to help with study costs (paid as a lump sum when eligible), amounting to $1,349 as at January 2026. The amount is reviewed each year.
No interest loans (NILs)
No interest loans are available to people on low incomes, which can be used to pay for essentials (like a laptop for study, whitegoods, or medical costs). Loans are up to $3,000 that can be repaid within two years.
To be eligible for no interest loans, you must:
- Have either a Health Care or a Pension Card, or
- Earn a pre-tax income of less than $70,000 (for singles) or less than $100,000 (for couples/people with dependents)
- Have lived at their current or previous address for at least three months, and
- Can prove you can repay the loan
Government payments while studying
If you’re studying or doing an apprenticeship, you may be eligible for Centrelink support (subject to eligibility rules and income/assets tests):
- Youth Allowance – Generally for 24 years old or younger studying full-time or doing a full-time apprenticeship (specific rules apply).
- Austudy – Payment for students over the age of 25 who are either enrolled full-time in an approved course or an apprenticeship. An income and assets test applies.
- ABSTUDY – Support for eligible Aboriginal or Torres Strait Islanders Australians studying or training (eligibility rules apply).
What can students use a personal loan for?
Depending on the lender, students could use a personal loan to pay for a new laptop, a car, or a major expense that has come up. It can also be used to consolidate any debts you have, or even finance an end-of-semester holiday.
Personal loans give you more freedom, compared with financial support that is limited to specific expenses (e.g. HECS-HELP loan only for course fees), but getting approved for one will usually be harder than these other options.
- Take note: Flexibility cuts both ways. If you borrow for “nice-to-haves” (like holidays or festivals), you can end up paying for it long after the good time is over.
Read Also: Should you take out a personal loan?
Am I eligible for a personal loan?
Eligibility criteria for personal loans can vary from lender to lender, but common requirements include:
- Being 18 years or over
- Being a permanent Australian resident
- Having a regular income
- Having a good credit history for the last five years
- Passing the lender’s credit and affordability checks
Once it’s time to apply for a personal loan, read the documentation before you sign anything, because as soon as you take out the loan, the “fun” part begins: paying it back.
In the market for a personal loan? The table below features personal loans with some of the lowest interest rates on the market.
| Lender | Car Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Interest Type | Secured Type | Early Exit Fee | Ongoing Fee | Upfront Fee | Total Repayment | Early Repayment | Instant Approval | Online Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.24% p.a. | 6.95% p.a. | $389 | Variable | Unsecured | $0 | $10 | $495 | $23,334 | |||||||||||
5.95% p.a. | 5.95% p.a. | $386 | Fixed | Unsecured | $0 | $0 | $0 | $23,171 | |||||||||||
5.76% p.a. | 5.76% p.a. | $384 | Fixed | Unsecured | $0 | $0 | $275 | $23,066 |
|
A quick note on credit checks (and why it matters)
When you apply for credit, lenders will look at your credit report and your ability to repay.
Also, negative events can stick around for a while. For example, bankruptcy can remain on your credit report for two years from when it ends, or five years from when it started (whichever is later).
If you’re unsure, check the lender’s requirements before you apply, because too many applications in a short period can make you look desperate for credit (and can hurt your chances).
How to compare personal loans
Before deciding on a personal loan, make sure you compare a range of different products based on the following:
Can you actually afford the loan?
Even if you can get approved for a high loan amount, you need to decide how much debt you’re comfortable taking on and whether you can afford to repay it. Run the numbers. If your income is casual and shifts vary, build a buffer so you’re not panicking every fortnight.
You may consider using a personal loan calculator to work out if this debt is something you can reasonably afford. If not, you may decide it’s better to save up or borrow money from a family member or friend.
How much can you borrow?
If you only need $2,000 for a laptop and textbooks, borrowing $10,000 “just in case” can be a slippery slope.
Be careful with high-cost, short-term credit. If you’re short on cash, it can be tempting to look at payday loans or other high-cost credit. But these products can be expensive and hard to escape if you fall behind.
Read Also: Payday loans vs personal loans: Which is right for you?
A credit card is another product that can be used for short-term borrowing, as long as you understand the pros and cons, while a few banks offer credit cards solely for students.
If you only need a small amount, consider safer options first, like NILs, Student Start-up Loans (if eligible), or speaking to your uni’s financial wellbeing team. If possible, take on a few extra shifts at work and save up if you can.
Are the interest rate and fees competitive?
You obviously don’t want to pay more for a personal loan than you need to, so it’s important to compare a bunch of them and see how the interest rate and fees on each loan stack up.
Keep in mind that your interest rate can also be determined by factors such as your risk as a borrower and whether you take out a secured or unsecured personal loan.
Are there restrictions on what you can use the loan for?
Most personal loans can be used for lots of things, but some lenders restrict certain uses (like business/startup expenses).
Savings.com.au’s two cents
If you’re a student, it’s safe to assume you’re probably on a tight income, so taking on debt deserves a proper think.
If you’re not confident you can repay a personal loan (even when your shifts drop off), it may be worth looking at alternatives first, like Centrelink support, Student Start-up Loans, or no-interest NILS loans for essentials.
But if a personal loan is the right option for you, compare carefully: interest rates, fees, repayment flexibility, eligibility criteria, and the amount you actually need.