Investing in your education is an investment in your future. A good education is rarely free. There will be tuition fees, whether you’re chasing a university degree, doing a certificate course, or even an unofficial online course of some description.
Unless you already have the money to cover the cost of tuition and other associated course expenses, you’ll need to find the funds through other means. One of the most common methods of funding education in Australia is with some form of Education Loan.
While this is all well and good and that when it comes to an Education Loan, Australia gives you quite a few options, just because you happen to apply for a loan, that doesn’t guarantee your application will be given the tick of approval by the lender.
To improve your chances of Education Loan success, let’s look at a few tips and things to keep in mind when applying for finance for your education expenses.
Be Certain You Meet the Lender’s Criteria
There’s very little point in applying for a loan with a particular lender if you don’t meet everything on their list of lending criteria. Most likely, you’ll simply be wasting your time filling out and submitting your application.
Not all lenders are the same and their eligibility criteria can differ also, so be sure to shop around, check their lists and find a lender that’s a good fit for you and your individual circumstances.
Demonstrate That You Have the Means To Repay the Loan
Unless you can provide proof to the lender – whether it be a bank or private lender – that you have the financial capacity to repay the borrowed funds over a set period of time, you’re going to be hard pressed to get approved for an education loan.
When you borrow money, the lender is taking a chance that you’re faithfully and reliably going to pay back the borrowed amount in instalments every week, fortnight or month. Essentially, they are taking all the financial risk in the equation, so they’re going to want to know that they’ll be able to recover the funds, plus interest and any associated fees.
Generally, in order for a lender to approve a loan application, they will require proof of income in the form of recent payslips from your employer, or business details from your accountant if you’re self-employed or contracting.
Compile All of the Required Paperwork and Supporting Documentation
It would be a very rare occasion indeed where you could apply for some form of financing and not need to supply any supporting documents. At the very least, you’ll need to be able to prove your identity, supply proof of income and maybe even submit recent bank statements as well.
Each lender will be a little different, so determine beforehand what a particular lender requires regarding paperwork and collate all the documentation before filling out the application form.
Don’t Borrow More Money Than You Really Need
When applying for a loan, it can be tempting to borrow more than you need, but try to resist this urge. Remember, whatever amount you do borrow, you have to repay that amount with interest attached. You want to give yourself every chance of approval and if you only borrow what you need, you increase your chances of success.
For one, a lower loan amount is more likely to get the nod. Also, the less you do borrow, the more manageable the repayments are going to be, so demonstrating your ability to repay the funds is also improved as a result.
Apply Online for Convenience and Speed of Process
If you can apply for Education Loans online, it provides a more convenient solution when you can do the entire process from the comfort of home or wherever you happen to be at the time. An online application process can also help to speed up the entire process, providing you with the outcome sooner than if you were to do the process at the physical branch of a bank, for example.
The Takeaway
If you need to apply for a loan to fund your education expenses, follow the tips in this article to improve your chances of success.