Types of loans for international students

PTE Author
PTE Author
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Reading time: 6 minutes

No matter where in the world you choose to study, it’s important to take into account the financial cost of living abroad. Tuition, rent, textbooks, and transport can all be big expenses. But because of visa restrictions, not all students are able to work enough hours to support themselves while studying. 

In this, many international students might need to take out private student loans.  So, let’s explore what loan options are available for students – including in popular study destinations like Canada, Australia, the U.S., and the U.K.  

Where can I find a private student loan? 

Many countries have student loan systems in place to help learners fund their education. However international students are usually not eligible for these loans – only citizens, permanent residents, and those with protected status in a country can apply.  

On the other hand, there are lots of private loans for international students. Your eligibility will depend on what country you’re studying in. For example, in some countries, you’ll need a co-signer. In other countries, you’ll need to show you have a regular source of income.  

Loans for students studying abroad are available from various sources, including:  

  • Local banks 

  • Non-bank lenders and private student loan programs (popular in the U.S.) 

  • Universities  

While searching for student loans, we always recommend checking with your university first, as these loans usually come with better terms. For example, the University of Sydney in Australia offers loans of up to $1000 AUD ($777 USD) that are interest-free and payable within 12 months, as well as $2000 ($1550 USD) loans that can be paid back up to two years after graduation.  

Private student loans by country 

Private student loans differ by country. So, let’s take a look at what’s available for international students in these four popular study destinations. 

Australia 

It can be expensive to study abroad in Australia. According to the Australian Government, tuition for international students perusing a bachelor’s degree can cost between $25,000 – $45,000 AUD ($19,425-$34,966 USD) a year. Likewise, the cost of living can be about $21,000 AUD ($16,317 USD) for 12 months. Of course, these costs can vary depending on your institution and where you study in the country.  

But, the good news is that on an Australian student visa, you can work up to 40 hours every two weeks

As an international student, you won’t be able to access Australia’s Higher Education Loan Program (HELP). But you can explore the following to help further fund your studies:  

  • Short-term and long-term loans from a university. Dozens of universities offer loans to international students, just like the ones from the  we mentioned above. For example,  offers students loans up to $5,000 AUD ($3,883 USD). The even gives out student loans of $200 AUD ($155 USD) in case of emergencies, like if you’ve lost your wallet or are short on cash. 

  • A secured personal loan with a private bank, in which you offer an asset as collateral. 

  • An unsecured personal loan. With these, you don’t have to offer an asset as collateral, but interest rates are generally higher. Banks across Australia offer these types of loans. One example is Westpac.  

Read more: Australian student loans for international students 

The U.K.  

On average, students in the U.K. spend about £795 ($1,100 USD) a month on living expenses, and for international students, tuition for a Master’s Degree can be between £5,000-17,000 ($6,983-$23,743 USD) a year. With Brexit, EU/EAA citizens will now considered international students.  

So, what loan options do foreign students have? 

  • A foreign-enrolled loan. Students can apply to these to fund their education abroad – but it depends on what countries you come from the U.S. and what university you’ll attend. Students from, for example, can be eligible. 

  • Bank loans for students studying abroad from your home country.

  • Private student loans for foreign learners in the UK. Future Finance, for example, offers 

    flexible loans to international students. 

Read more: UK student loans for international students  

The U.S.  

The U.S. is one of the most expensive places to study as an international student. The cost of living can range between $1,000 – 3,000 USD per month, depending on where in the country you settle. Tuition for a four-year bachelor’s degree can cost roughly $40,000 USD at a public university and can reach past $50,000 USD at a private university.  

However, there are lots of student loan options available. These loans can be quite a long-term, and students might be able to repay them over the course of up to 25 years.  

  • Banks and online lenders. Loans from these sources often require a U.S. co-signer with good credit history. Organizations like Assent and Discover provide loans to international students. 

  • An online lender that doesn’t require a U.S. co-signer. MPOWER Financing, for example, offers loans for international students without a co-signer.

Canada 

Tuition fees at Canadian universities and colleges can vary – international students can expect to pay between $1000-30,000 CAD ($794-$23,830 USD) a year for a bachelor’s degree. Living costs depend on what city you study in but can range between $800-$2000 CAD ($635-$1588 USD)  a month.  

International students in Canada have a few loan options: 

  • A bank loan from your home country. Like many countries, Canada requires students applying for a visa to show they have enough money to cover their expenses

     – making getting a loan from home a good first option.

  • A student line of credit from a Canadian bank. With these, you have a set limit (just like on a credit card) and only have to pay back the money you actually use. Learn more about the student line of credits on the Government of Canada website.   

  • Private companies. For example, MPOWER Financing also offers loans to international students in Canada without a co-signer.  

This isn’t an exhaustive list. But we hope this article provides you with a good starting point and helps you understand where to begin looking for student loans to fund your education. Remember, it’s important to shop around for the loan that works best for you – there are lots of options out there. 

Preparing to study abroad?

PTE Academic can help you get one step closer. Our computer-based, unbiased language test is accepted by governments and higher education institutions around the world as proof of English proficiency. 

Find out more about the test or book your PTE Academic test today.

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    Do you want to follow in Boyden’s footsteps? York University accepts PTE

    3. Alice Munro 

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    7 top universities in Canada for international students
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    Canada is one of the most educated countries in the world. In fact, 63% of people aged 24-34 have completed their post-secondary education; only South Korea ranks higher among OECD countries.  

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    1. University of British Columbia  

    Founded in 1908, the University of British Columbia boasts some of the most beautiful campuses in Canada. It's largest

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    Cost of living: Vancouver is the most expensive city in Canada. A one-bedroom apartment in downtown Vancouver costs about $2,050 CAD/month. Learn more about how much on-campus housing costs here.  

    Tuition: Read more about the university’s fees here.  

    You might like: How to apply for a Canadian student visa

    2. University of Ottawa  

    What better place to study than in Ottawa, the capital city of Canada? Sat on the border between Ontario and Quebec, the University of Ottawa is the largest bilingual university in the world. It was founded in 1848, and today offers more than 450 programs in French and English.  

    The University of Ottawa campus features historic buildings, is close to the famous Rideau Canal, and was named number 6 in Canada for sustainability in 2020, according to the UI Greenmetric World University Rankings.  

    In recent years, the university has also invested in five new state-of-the-art facilities and research labs - including a black box theatre and an innovative STEM complex. You can take a virtual tour of the whole campus here

    Cost of living: A one-bedroom apartment downtown costs $1,618 CAD/month on average. Check out how much on-campus housing costs here.  

    Tuition: Learn more about tuition fees with the University of Ottawa’s fee calculator

    3. University of Alberta 

    The University of Alberta is located in and around Edmonton, which is the capital city of the province of Alberta. It was also founded in 1908 and boasts 18 faculties stretched across five campuses - where students from 156 countries are enrolled.  

    According to QS University Rankings, the University of Alberta is ranked 6th in Canada. It’s also ranked among the best in the world by the Centre for World University Rankings for a range of subjects - including forestry (5), geology (5), as well as - this one is cool -  paleontology (3)! In fact, a few hours from the University of Alberta is Dinosaur Provincial Park, which has been recognized by UNESCO for containing many of the most important fossils discovered from the “Age of the Dinosaurs.” 

    Cost of living: A one-bedroom apartment in downtown Edmonton costs $1,171/month on average. Learn more about University of Alberta on-campus housing here.  

    Tuition: Learn more about tuition fees at the University of Alberta here.  

    4. Dalhousie University   

    Dalhousie University is a research-intensive university in Halifax, Nova Scotia. It was founded in 1818, and offers students more than 190 undergraduate and graduate programs. Like a few other universities on our list, Dalhousie University is part of the U15 - a group of 15 leading Canadian research universities. Nearly 20% of students at the school are international. 

    Dalhousie boasts four campuses - three in Halifax and one a couple of hours away in a town called Truro. And, the province of Nova Scotia is an excellent place for international students to call home. It’s located in the heart of the Atlantic maritime, and students here will enjoy beautiful ocean views, vibrant nightlife, great live music, and friendly people. In fact, Canadian magazine Maclean’s named Halifax the best city in Canada to live and work remotely in 2021.  

    Cost of living: Halifax is an affordable city in Canada. For example, a one-bedroom apartment downtown costs about $1,415/month. Check out how much on-campus housing at Dalhousie University costs here.  

    Tuition: Learn more about tuition fees at Dalhousie University here.  

    5. York University  

    Founded in 1959, York University is the third-largest university in Canada. It’s located in Toronto - a great student city - and is home to 11 faculties. York excels in a range of courses - from education to psychology, to business. In fact, its executive master of business administration (EMBA) program was ranked first in Canada and number 21 in the world by Financial Times in 2020.  

    York University has one main campus in Toronto, as well as a smaller bilingual campus closeby. It also boasts a Hyberbad campus, where students have the opportunity to split their two-year master of business administration (MBA) course between Canada and India, as well as Las Nubes EcoCampus, located on 414 acres of protected land in Costa Rica!  

    Cost of living: A one-bedroom apartment in downtown Toronto costs about $2,100/month on average. But since York University is located outside the city center, rent may be cheaper. You can also find out more about on-campus housing at York University here.  

    Tuition: Learn more about tuition fees at York University here.  

    6. University of Manitoba  

    The University of Manitoba is located in Winnipeg, right in the center of Canada. It was founded in 1877 - making it the oldest university in Western Canada! The university offers more than 100 programs, and more than 20% of students are international. The University of Manitoba also has one of the largest Indigenous student populations in the country.  

    The university has two campuses; the largest one features 60+ buildings spread out through 692 acres, and the second is a world-class health sciences center located downtown Winnipeg. It’s also home to the Smartpark Research and Technology Park, an innovative hub that’s home to 10 buildings and 20 companies working in areas like ICT, engineering, and health and biotechnology.  

    Cost of living: Winnipeg is very affordable. A one-bedroom apartment downtown costs just $1,077/month on average. Learn more about on-campus housing at the university here.  

    Tuition: Learn more about tuition fees at University of Manitoba here. 

    7. McGill University  

    McGill University is based in Montreal, Quebec. Founded in 1821, it’s one of the most prestigious universities in Canada - and ranked 2nd in the country by QS University Rankings (31st in the world).  

    For the last 16 years, McGill’s also been ranked by Maclean’s Magazine as the best medical school in Canada. The university also has a global research focus - for example, they have international research partners in 99 countries. If you’re interested in the research they do, you can read about the 7 themes they focus most on here

    One of the best parts of enrolling at McGill? You get to live in Montreal! McGill University boasts two campuses; the main downtown campus is filled with green space and historic buildings, while the second sits on 1606 acres about 45 minutes from the city. And with its incredible arts, culture, and diversity, Montreal was named the world’s best student city for international students this year.  

    Check out our blog: 6 reasons to study in Quebec 

    Cost of living: Montreal is also one of the most affordable big cities in Canada. It costs about 1,300 CAD/month on average to rent a one-bedroom apartment. Learn more about student residence costs here.  

    Tuition: Learn more about tuition fees at McGill University here.  

    Canada is home to many world-class universities - and we can help you earn a spot. Our computer-based, unbiased English language exam PTE Academic is accepted by the majority of Canadian universities and colleges. 

    Discover more about PTE English tests for Canada.