Types of loans for international students

PTE Author
PTE Author
Image- letter of acceptance, 800px
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.

Related Content

  • Image- A guy with headphones and laptop
    Listening: Self-Improvement Part 1
    By PTE Author
    Reading time: 3 minutes

    After working through the strategies to improve your English listening skills, you can work on specific areas of the test. In this part, you will need to apply a number of listening and writing skills.

    Below are improvement tips on the question types that combine writing and listening skills.

    Summarize Spoken Text

    In the Summarize Spoken Text questions you will be scored on content, form, grammar, vocabulary, and spelling.

    Content and Form

    Make sure you write a good, clear summary of all the key points in the text and also condense the most important supporting points.

    In this question, you will not be given the context of the recording before it starts. Make sure to listen carefully from the start to help understand the context and the information given.

    Some helpful tips for the content and form, to maximize your score are:

    • Take notes on your Erasable Noteboard Booklet or in the response box on the screen

    • Do not try to write down sentences (you will not have enough time)

    • Use symbols and abbreviations in your notes

    • Write down key points and their relationships with others

    • Start with an overview sentence to introduce your summary

    • Use cohesive devices to link the information as you write

    • Try to write between 50 and 70 words

    Overall, make sure you summarize the text in your own words as this will show that you have understood the purpose of the text. If you do not write in your own words, you will score zero for content.

    If you write less than 40 or more than 100 words, you will score zero.

    Grammar

    It is important that grammar is correct as you will be tested on sentence structure, punctuation and capitalization.

    Try not to be too ambitious with your grammar to avoid making mistakes. Try to use grammatical structures you feel comfortable with.

    In this question type you should:

    • Communicate meaning clearly and concisely

    • Use complex sentences where possible to score more points

    • Write sentences between 18 and 30 words – long sentences are hard to control grammar

    • Check your response for common errors before submitting

    Vocabulary and Spelling

    You will score points if you use the correct and appropriate vocabulary in the Summarize Spoken Text question type. Use words from the recording if you use them appropriately, however, try to use synonyms to replace words already used.

    You will also need to make sure to spell every word correctly to receive maximum points. Try to type as carefully as possible during this question. If you can not remember how to spell a word, guess as it is better to include the word than leave it out, even if it is incorrect.

    Don’t forget to use the space bar to show the end of each word.

    Write from Dictation

    Another question that tests both listening and writing is the Write from Dictation question type.

    In this question type, you will need to write the words in the correct order with the correct spelling in order to score points.

    Before the recording starts, place your cursor in the response box and get ready to type as soon as you hear the recording. Make sure to reproduce what you hear exactly as you heard it as the recording will only be played once.

    Remember to start the sentence with a capital letter and end it with a full stop (period).

    Type as you hear it and when finished, check for any mistakes. Always make sure that to read over your answer before clicking next.

    Continue improving your listening skills by reading our Listening: Self-Improvement Part 2 article.

  • Image- A guy with headphone 1080px
    Listening: Core English Skills Part 1
    By PTE Author
    Reading time: 3 minutes

    The last part of PTE Academic, Part 3: Listening, requires a large combination of core skills.

    The very first skill you will need to develop involves how you listen (listening methods).

    Below, is information on different types of listening and where you may need to use them during PTE Academic.

    Listening Methods

    Predicting

    One of the listening methods you will need to develop is predicting. Before listening, most people will have some idea about what they are going to listen to and prepare themselves for it. They predict.

    It helps to think about the recordings before you hear it spoken, it helps you listen more effectively.

    This listening method will help during Select Missing Word questions as the topic of the text you listen to is given in the instructions. It will also help in the Re-tell Lecture questions as the image will give you an idea of the general context of the listening text.

    Listening for Gist

    Listening for ‘gist’ will allow you to understand the general meaning of a text quickly. When someone is talking, listen in a general way and think about what the speaker is trying to communicate and how they might feel about the topic based on their tone of voice.

    When practicing, try to listen for the gist before listening for a second time more intensively for specific information.

    This reading method will help in the Multiple-choice, Choose Multiple Answer and Multiple-choice, Choose Single Answer questions. Remember in PTE Academic you can not replay the listening track.

    Listen for Specific Information

    You will also need to be able to listen effectively to find specific information. This is more detailed listening and is often used when you need to answer comprehension questions. You first need to understand what information you are looking for in the text.

    When practicing, if you listen to a text that does not have questions write some yourself. Questions that may help could be:

    • What happened?

    • When did it happen?

    • Where did it happen?

    • Why did it happen? Or, why did it happen in this way, and not another way?

    While listening for specific information, you should listen for synonyms and paraphrasing to match the meaning of the text with the meaning of the questions.  This is because you will not hear the exact words in the question.

    Listening to Infer Meaning

    At times you can understand what the speakers are saying by inferring meaning, as the information is not always stated by the speakers.

    To infer meaning, you need to listen for clues in the text or use general knowledge to guess the meaning of what the speakers are saying. Do this by working out the relationship between the speakers, the tone of voice or the words they use.

    You may need to use this listening method in the Multiple-choice, Choose Multiple Answer and Multiple-choice, Choose Single Answer questions.

    In addition to listening methods, you will also need to understand how words are pronounced on their own and together in a sentence. Read more about pronunciation in Part 2 of Core English Skills.

    Want more prep ideas?

    Explore Smart Prep, which combines all our practice materials in one place, so it's easier for you to stay on track with your PTE preparation.

    • Smart Prep is a clear path to test day, guiding you through the official paid and free resources available for your test

    • It can be accessed whether you’ve booked a test or not – just create, or sign in to your myPTE account

    • Preparation materials include guided practice tests, introductory videos, video courses and test tips.

    Ready to get started?

  • Image- Reading
    Reading: Core English skills part 2
    By PTE Author
    Reading time: 3 minutes

    Once you have practiced and improved your grammar and vocabulary, for Part 2: Reading in PTE Academic, you will need to learn reading methods and the different styles of writing.

    As the PTE Academic is an integrated skills test, the skills developed will be applicable to most sections of the test.

    Firstly, the reading methods you will need to learn and develop are:

    Skim Reading

    By quickly moving your eyes over the text you will be able to get the general meaning of the text. This is the fastest way to understand the text’s meaning.

    Scan Reading

    The fastest way to locate specific information in a text is to scan read. Scan reading helps you find the keywords in a text. Once you find the section of text needed, slow down and read intensively until you understand the information needed to answer the question.

    Intensive Reading

    Intensive reading is done at a slower pace and more carefully. After using scan reading to find the section of text containing the answer you need, you will then need to read intensively to locate the specific information required to answer the question.

    If you are unable to answer the question from the section read, go back to scan reading the whole text to find the correct section, then intensively read that section.

    Critical Reading

    To read critically, you need to think more deeply about what you are reading to understand the text at a deeper level. You will then be able to identify the writer’s purpose, as well as the organization of the text in order to make inferences or understand the textual value.

    You may have to read critically to answer the reading questions Multiple-Choice, Choose Single Answer and Multiple-Choice, Choose Multiple Answers. You may also need this skill to answer the writing question Summarize Written Text, as you will score zero points if you don’t correctly identify the purpose of the text.

    The last question type this skill is used for is the listening question Highlight Correct Summary, as you may need to clarify and organize information to identify the correct summary of the text heard.

    You will also need to be able to identify the style of writing used in the reading texts throughout the test.

    Style of Writing

    For PTE Academic, you will need to understand the style or register of English texts. The style or register refers to the way in which text, that has the same meaning, can be written in different ways.

    When writing, you will need to be able to choose the appropriate words to fit the correct style of the text, as well as understand the style of texts you are reading. For example, an email to your friend will be in an informal style. However, a journal article will be in the academic style. Abstract ideas are also usually written in the academic style.

    Two or three-part verbs (phrasal and prepositional verbs) are generally informal while Latinate verbs are formal, or academic. For example, find out (informal), pick up on (informal) and discover (formal or academic).

    You will need to be able to understand not just the meaning but also the style of a text for the Reading & Writing: Fill in the Blanks questions.