Western Australia Student Loans

Student Loans

When it comes to going to college, securing the money required for tuition, books, room and board can be difficult for thousands of Australian students. Without the proper support, attending a university can seemingly be out of reach. While there are several ways to earn enough money to attend college, it can be very difficult to balance a full time job with excelling at your studies.

Fortunately, this is where student loans come into the picture to help students and their families pay for higher education.

What are Student Loans?

These are loans offered by banks and recognized lenders that will pay for certain college related expenses. Student loans offer substantial financial support that will pay for the tuition, books, room and board depending on how much is borrowed.

There are striking similarities in student loans to personal loans in terms of their use. However, there are substantial differences in the way that they are structured. This is particularly true in terms of how the payback is structured which may be years after the first loan is approved. But this is a necessary component of student loans and what makes them a viable option to fund your higher educational needs.

For students who are accepted at a college or university, getting student loans is fairly easy as this is the basic requirement that is needed along with having a parent or guarantor who co-signs on the loan. However, if you have already developed a poor credit history then it they may be more difficult to obtain.

Advantages and Disadvantages of Student Loans

Arguably the biggest advantage is that you do not have to payback your student loans until after you leave college and find work. This means that your future job will help you pay off the loans that have accumulated over time. This unique aspect of student loans is what has helped so many Australians and people around the world attend colleges and universities.

Fortunately, the Australian government is one of the best sources for obtaining loans as they offer very low interest rates and if you have yet to earn over a pre-set amount on your annual salary, then you will not be required to repay under those conditions. However, it must be noted that not everyone will qualify to get a student loan from the government.

Another advantage is that you do not have to rely on work to provide all the funds for your college education. Instead, you can take on a part-time job or find other ways to earn the money needed to buy food and other necessary items while the student loans take up the bulk of the payments. In addition, the interest rates are often set lower to help you pay them off.

However, the biggest disadvantage is related to the main advantage in that you must start paying off the loans at the very time when you are just starting out in the world on your own. Trying to pay off student loans while buying a vehicle, home or pay for other substantial expenses can be quite difficult.

Overall, student loans serve as an important financial tool to help you pay for college expenses that otherwise might prove to be too big an obstacle to overcome.