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

  • Group of friends taking a selfie.
    Your guide to PTE test centers in Perth
    By PTE Author

    Whether you need to prove your English for an education, work, or migration visa application, we’re here to make your PTE test booking in Perth quick, easy, and stress-free.

    Find your perfect test center in Perth

    Perth offers multiple test centers equipped with modern facilities to ensure a smooth testing experience. Popular test centers include:

    • Navitas English Perth on Newcastle Street

    • Pearson Professional Center on William Street

    • New North Perth test center on Fitzgerald Street!

    Wherever you are in Perth, there's a PTE test center near you — check availability and book now.

    Why choose PTE?

    PTE is the faster, fairer and simpler English language test.

    • Get your results typically in just 2 business days

    • Our unique combination of AI scoring and human expertise reduces the risk of bias

    • Test all your language skills in just one short, computer-based test

    Tips for success

    Prepare for your PTE test like a pro:

    • Arrive at least 30 minutes before your test time

    • Bring a valid ID for verification

    • Practice with mock tests to build confidence

    • Stay calm and focused – you’ve got this!

    Don't wait — book early!

    Popular test dates fill up fast so book your PTE test in Perth today! Secure your spot at a convenient location and start the journey to your education, work, or migration aspirations.

  • [Asset] Friends walking along a beach
    G’day opportunity: Why so many people are moving to Australia
    By PTE Author
    Reading time: 5 minutes

    From world-famous beaches to stunning coral reefs, hopping wildlife to bbq-loving locals, it’s no wonder that Australia claims two top ten spots in the Global Liveability Index. 

    Whether you’re looking for bustling cities or quiet countryside, Australia is full of potential, with education, career opportunities and a sense of community being the biggest draws.  

    But how did people choose their new life down under? We talked to over 3000 PTE test takers who’ve migrated to Australia to find out why they made the move and what they love about their new home.  

    High-quality education

    According to our survey, over 64% identify Australia’s high-quality education system as a major pull. Australia takes in a huge number of international students, with over 810,000 enrolled to study in Australia from 2023.  

    A warm welcome and support for their existing international student population only encourages more to apply, creating a strong international community.  

    Those looking to study in Australia have a choice of more than 40 universities offering huge choices in academic programs.  

    On a student visa, you have the option to work part-time during your studies, allowing international students to support themselves while learning, and making Australia an affordable option for those looking to study in an English-speaking country.  

    Career opportunities

    One of the most appealing aspects of moving to Australia is the number of career opportunities. Top sectors shaping the economy and providing great employment opportunities include mining (14.3%), health and education (12.8%), and finance (7.4%).  

    Our PTE test takers told us they were able to find well-paid work, with some even going on to start businesses and buy a home down under. More than nine in ten (91%) are working full-time, with 72% employed in skilled professions with a median income of $93k.  

    Over 87% said they were looking to progress their careers in Australia, suggesting they’re feeling fulfilled in their work and optimistic about their long-term career options in the country. PTE Academic is recognized by a wide range of professional bodies for their skills assessments, including engineering, nursing and midwifery and accounting to name a few. This opens many doors for pursuing a career in Australia.   

    Sense of community

    A warm welcome and sense of community are what makes a new place become home. Beyond education and career opportunities, social integration was one of the main advantages of migrating to Australia.  

    We found that 84% of people that had moved to Australia say they’ve successfully built community connections, with 89% having experienced acts of kindness from others. Movers also report wanting to contribute to their new communities, with more than 1 in 10 taking part in volunteer activities.  

    This two-way integration makes Australia an attractive place to put down roots and become a part of the country’s diverse social fabric.

    A long-term move

    So many respondents shared their positive experiences of moving to Australia, with 8 in 10 saying Australia met or exceeded their expectations and 9 in 10 encouraging others to make the move and join them.  

    Many see it as a long-term move with 70% wanting to stay and gain permanent residency.   

    From education and employment opportunities to vibrant international communities, it’s easy to see why so many English-speakers are saying “G’day” to a new chapter in Australia.  

    Making it happen with PTE

    It takes ambition and commitment to start a new life abroad — along with the right support.  

    Our survey found that 66% of migrants felt their success at work in Australia was down to their English language skills.  

    PTE Academic is recognised by the Australian government for all visa categories and is accepted by 100% of universities in Australia.

    Designed to be faster, fairer, and simpler, 87% prefer PTE over similar tests. So, if the Great Australian Dream sounds like the right fit for you, take the first step with PTE.

  • [Asset] Smiling student
    Practice for PTE with Smart Prep’s Guided Practice Tests
    By PTE Author
    Reading time: 5 minutes

    Are you preparing for the Pearson Test of English (PTE) and looking for an effective way to practice? Look no further! Smart Prep’s Guided Practice Tests are your ticket to a more confident test day. These free mock tests are designed to give you a realistic experience of the PTE, helping you understand the test format and identify areas for improvement.  

    What Are Guided Practice Tests?

    Smart Prep offers Guided Practice Tests for both PTE Academic and PTE Core. Each category includes five tests: one short test that provides a condensed version of the exam, and four other tests focused on individual skills — speaking, writing, listening, and reading. These tests are available for free through Smart Prep as long as you create a myPTE account. Each skill-specific test contains the same number of questions as the actual exam, guiding you through the process with sample answers and feedback. 

    How to use Guided Practice Tests effectively

    For Speaking and Writing questions:

    1. Create an exam-like environment: 

    • Remove any distractions from your workspace. 

    • Ensure your microphone is working properly. 

    • Start the test in a quiet setting.

    2. Read the introductory page: 

    • Understand how many questions are in each section. 

    3. Follow instructions carefully: 

    • Pay attention to any preparation time allowed for each question. 

    • Record yourself during the preparation time if applicable. 

    4. Record your answers: 

    •  Stick to the time limits (e.g., 30-40 seconds for Read Aloud). 

    5. Self-review: 

    • Listen to your recorded answer. 

    • Note what you did well and areas for improvement. 

    6. Compare with sample answers: 

    • Click on the sample answer button to listen to and read the sample response. 

    • Compare your answer with the sample, focusing on aspects like fluency and content.   

    7. Iterate and improve: 

    • Move on to the next question and repeat the steps. 

    • Give yourself ample time to review and understand the sample answers. 

    For Reading and Listening questions:

    1. Read instructions carefully: 

    • Understand what each question is asking for. 

    2. Attempt the question: 

    • Submit your answers after completing each question.   

    3. Review feedback: 

    • Check which answers were correct and which were incorrect. 

    4. Revise incorrect answers: 

    • Try to understand why your initial answer was wrong. 

    • Re-attempt the question until you get it right.  

    5. Analyze your performance:

    • Note any patterns in the types of questions you find difficult. 

    • Focus your study time on these areas. 

    The Benefits of Guided Practice Tests 

    Practicing with Smart Prep’s Guided Practice Tests will help you: 

    • Identify weak areas: Understand which types of questions you find challenging. 

    • Improve skills: Focus your preparation time on areas that need the most work. 

    • Build confidence: Familiarize yourself with the test format and question types. 

    • Enhance performance: Use sample answers to learn what a good response looks like and how to achieve it. 

    Why Smart Prep? 

    Smart Prep offers a structured, comprehensive, and user-friendly approach to PTE preparation. By using Guided Practice Tests, you’ll gain valuable insights into your performance and know exactly where to focus your efforts. Whether you find reading difficult or struggle with speaking fluently, these practice tests will guide you on your preparation journey.

    So, what are you waiting for? Start using Smart Prep’s Guided Practice Tests today and take the first step towards acing your PTE!

    Happy studying, and good luck on your PTE journey!