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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    The great UK skills shortage: 5 occupations that can help you move abroad
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    The UK has long drawn people from around the world to live, work and study. It boasts an excellent healthcare system and impressive universities. Its countryside and cities are dotted with historic buildings and castles. Another big plus? The UK is incredibly diverse.  According to the Migration Observatory at the University of Oxford, about 14% of the UK’s population was born abroad, and 35% of immigrants live in London. And, many of the UK’s migrants come to work. In fact, in 2019 48% of EU residents moved to the UK to work, while 21% of non-EU residents did.

    So what kind of jobs are there in the UK for international applicants? The UK has a skills shortage for a long list of occupations, and professionals who can fill them will have an easier time applying for a UK work visa under the new points-based immigration system.

    In this blog, we’ll explore what top professions can help give you an advantage when applying for a UK work visa, and insight on how to get a job in the UK.

    The top jobs in the UK for international applicants 

    The UK has two shortage occupation lists. One outlines occupations in healthcare and education that need more personnel. The other list features occupation shortages from a range of different fields – including the arts, science, and IT.

    To be eligible for a Skilled Worker visa in the UK, you need to reach 70 immigration points. And working in a job on the Shortage Occupation List counts for 20 points – which can provide you with a big advantage. We’ll expand on a few top jobs on the list:

    1. Nurses

    The UK has faced a nurse shortage for a long time. Right now, England needs to fill more than 36,000 positions, making it an excellent place to look for work if you’re a nurse wanting to move abroad. Already, about 15% of nurses in the UK are trained overseas.

    However, nurses and other healthcare professionals were added to the Shortage Occupation List just this March. “Every year we welcome healthcare workers from across the world to our United Kingdom, with many having played a key role on the frontline of the NHS during the recent pandemic,” said the UK Minister for Future Borders and Immigration, Kevin Foster, in a statement.

    The move, he said, will help ensure international healthcare professionals get the immigration status they deserve.

    Learn more about how to register as a nurse in the UK.

    2. Pharmacists

    Pharmacists were also added to the UK’s Shortage Occupation List in 2021. While not as in short supply as nurses, there’s a pharmacist vacancy rate of about 8% in hospitals. Again, this means there could be of opportunity for internationally-trained pharmacists to find a job in the UK.

    To work as a pharmacist in the UK, you need to register with a regulatory body called the General Pharmaceutical Council, which you can learn more about on the NHS website. (The NHS is the UK’s publicly funded healthcare system).

    3. Engineers

    There are also plenty of engineering jobs on the shortage occupation list. From civil engineers to mechanical engineers, to electrical engineers and everyone in-between engineers from around the world are in high demand in the UK.

    Depending on the field of engineering you work in, you’ll have to make 80% of the going rate for the job to be eligible for a Skilled Worker visa.  That’s between about £26,160 and £29,600 per year.

    4. Secondary education teachers

    Secondary education teachers who teach math, physics, modern foreign languages, and computer science are some other jobs on the list. If you’re a trained teacher outside the UK, you can work without getting Qualified Teacher Status (QTS) for four years. But after that, you’ll have to become a qualified teacher in the UK.

    You can learn more about teacher salaries on the UK Department of Education website. To qualify for a visa, you’ll have to earn at least £20,480 (or more depending on where you’re located).

    5. Graphic designers

    Are you a graphic designer? Well, you’re in luck. Graphic designers are also a sought-after profession in the UK. It’s common for graphic designers to work on a freelance basis. But keep in mind: to qualify for a Skilled Worker visa, you’ll need to get a job sponsorship in the UK from an employer.

    You’ll also have to earn 80% or more of the going rate for graphic designers in the UK. This is about £18,800 per year.

    How to get a UK work visa

    Skilled Worker visa lets you work in the UK with an employer who is approved by the Home Office, which is a UK government department. As we mentioned above, you’ll have to reach 70 immigration points to be eligible. Having a job offer from an employer, professional skills, and English proficiency all contribute to your points.

    Depending on your situation, you may decide to apply for another type of visa or immigration route, such as the EU Settlement Scheme or UK Graduate visa. There is also a Health and Care Worker visa, which enables healthcare professions to work with the NHS.

    How to find a job in the UK

    So, how can you find an employer in the UK to sponsor you? There are lots of job boards that are related to specific professions. For example, the UK’s Department of Education offers a website to search for teaching vacancies by location. There’s also Nurses.co.uk, which features thousands of nursing jobs. More generally, websites like Reed and Jobsite are also good places to look for employment in the UK.

    All in all, the UK is an excellent place to call home. And better yet, there’s plenty of job opportunities to help you thrive.

    Our Secure English Language test, PTE Academic UKVI, is accepted by the UK’s Home Office for all UK visas to test your four language skills – including the Skilled Worker visa.

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    7 benefits of studying in the UK
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    Students around the world have long been drawn to study in the UK. And, it’s for a good reason. The UK is known for its world-class education, diversity, and bustling student cities – making it a great place to study abroad. 

    In recent years, the UK has also announced more incentives to attract international students – such as visa changes and friendlier immigration policies. Overall, it hopes to recruit 600,000 international students per year by 2030. In 2019/2020, international university students made up 22% of the student population! 

    So, why should you consider studying in the UK? In this article, we’ll explore 7 benefits and how studying at a UK university can help prepare you for the future.

    1. The UK is home to top universities 

    UK universities are among the most respected in the world. In fact, according to QS World University Rankings 2021, eight UK universities are ranked among the top 50 universities globally. They are: 

    Universities in the UK are well-known for their R&D capabilities, medicine, and arts and humanities courses – and there are more than 100 universities to choose from. To see which universities in the UK excel in your specific area of study, QS World University Rankings also breaks down universities by subject.  

    2. It’s incredibly diverse 

    Fourteen percent of the population in the UK was born abroad, about 9.5 million people. This means international students who move overseas to the UK could have the opportunity to learn about numerous different cultures and make friends with people from around the world. This is especially true if you’re moving to London, where 35% of the population was born outside the UK. Even more, you’ll also likely be able to stay closely connected with your own culture, through attending community events or visiting restaurants that serve food from home – things that can help with homesickness and culture shock.

    3. There is support for overseas students 

    There is plenty of support for international students in the UK. This might be online, through your university, or through the local government. For example, each university has an office set up to address international students’ needs, and answer questions about tuition, housing, and academic support, etc. You can also be in touch with this office before you apply to a university.

    The UK Council for International Student Affairs, which is an advisory body for international students, boasts lots of great information on their website for international students, as well – including resources on mental health support, housing, working, and immigration. They also have a hotline you can call with questions. Learn more here.  

    You might be interested in our articles: scholarships for international students in the UK and UK loans for international students. 

    4. Studying in the UK will improve your English skills 

    What better place to practice your English than England, where the language originated from? By studying in the UK, you’ll get the chance to hear numerous different British accents – including English, Irish, Scottish, and Welsh, all of which might sound distinct in different regions.  

    Since the UK is so diverse, you’ll also be exposed to different English accents from around the globe, giving you a real-world listening experience you might not get at home.

    5. There are job opportunities after graduation 

    This March, the government announced they’d soon open up applications for the Graduate route – a move that’s set to attract even more students to study in the UK. Starting in July, international bachelor’s and master’s students will be able to apply to stay for 2 more years after graduation, while international doctorate students can stay for 3 years. This makes it easier for new professionals to settle and begin their careers in the UK. 

    There are also lots of career opportunities, especially if you work in a job on the UK’s Shortage Occupation List. In the UK, there is a shortage of nurses, pharmacists, teachers, engineers – and more – and the government actively recruits professionals for these positions from abroad.  

    Learn more:  The great UK skills shortage – 5 occupations that can help you move abroad 

    6. It’s a great place to live

    So, what’s it like to live in the UK? According to the OECD Better Life Index, pretty good. People in the UK ranked their general satisfaction with life a 6.8 out of 10 (which is higher than the OECD average). The UK also ranks above average in things like jobs, education and skills, and social connections – all things that may be important to international students.

    7. Finally, you’ll have a lot of fun 

    From London to Glasgow, to Manchester, to Nottingham, the UK is home to a whole range of great student cities for international students to explore.

    You might want to enjoy the UK’s pub culture through university student nights or visit your new city’s world-class art galleries and museums. You’ll get the chance to tour centuries-old castles, and explore landscapes, cliff sides, and picturesque towns. Most of all, you’ll get to meet friends from around the world – and with them, enjoy all the UK has to offer. 

    PTE Academic can help you get started on your journey to the UK. Our English language test is accepted by 99% of UK universities as proof of English proficiency. 

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    The UK’s new Graduate route: post-study work visa requirements
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    International students in the UK now have the option to stay longer after graduation. 

    Back in March, the UK’s Home Office announced the Graduate route. This will let students continue living in the UK for two to three years after finishing their studies. It’s a big deal, giving students the opportunity to begin their careers, as well as set long-term goals for themselves abroad.

    “As we rebuild from the global pandemic we want the world’s brightest talent, who aspire to a career at the highest levels of business, science, the arts and technology to see our United Kingdom as the natural place to fulfill their aspirations,” said Minister for Future Border and Immigration Kevin Foster in a statement.

    In this article, we’ll take a look at everything graduates and prospective students need to know about the new UK visa.

    The Graduate route: how will it work?

    The UK hopes to welcome 600,000 international higher education students per year by 2030. The Graduate Route contributes to this plan. It is designed to attract students to study in countries throughout the UK. In fact, since the route was announced back in 2019, enrolments from students outside the EU hit a new high – increasing 17% year-over-year.

    So, how will the new UK visa work? International students who’ve completed an undergraduate degree (or above) should be able to apply. With the route, bachelor’s and master’s students will be able to stay in the UK to work or look for work for two years after graduation. Doctorate students will be able to stay for three years.

    The new Graduate route within the UK immigration system is meant to be flexible. That means you won’t need a job offer to apply. There’s no salary limit and you can change jobs whenever you want. However, if you find a job you like, you can apply for a Skilled Worker visa from inside the UK.

    It’s important to keep in mind that the Graduate route doesn’t count for settlement. So if you want to stay in the UK permanently, you may consider applying for a work visa which does count toward settlement sooner.

    Who is eligible?

    If you’ve finished your undergraduate, master, or doctorate degree and have a valid student visa when you apply, you are likely to be eligible for the Graduate route.

    People studying remotely outside the UK during the pandemic are also eligible, at least for a time:

    • If you began university in fall 2020, you’ll have until June 21st of this year to enter the UK on your Student visa. Do so and you will be eligible for the Graduate route later on.

    •  If you started in winter 2021, you’ll have until September 27th.

    How can you apply?

    The cost to apply to the Graduate route is £700 for both two and three-year Graduate route applications. On top of this, there will be an extra Immigration Health Surcharge of £624 each year. This gives you access to the UK’s National Health Service on generally the same basis as a UK permanent resident.     To discover more about the visa application process and the UK visa requirements, be sure to check the UK Visas and Immigration website.

    Other visa options

    The Graduate route is welcome news for international students in the UK. However, it’s not the only option when it comes to UK work visas. For example, after graduating you might also be able to apply for a:

    Start-up or innovator visa

    If you have an innovative business idea and plan, you might be eligible for a Start-up visa. This lets you stay in the UK for up to two years. To apply, you need to be endorsed by either a UK university or a business organization. There’s also the UK Innovator visa, which lets you stay in the UK for three years.

    Global Talent visa

    The Global Talent visa is made for people who are leaders (or potential leaders) in digital technology, arts and culture, and academia.

    Getting this type of visa isn’t easy. You need to apply for an endorsement through the Home Office, which experts in your industry will review. If you get granted the visa, you’ll be able to stay in the UK for up to five years. You will only be required to renew your visa each time you want to stay longer.

    Skilled Worker visa

    The Skilled Worker visa lets you stay in the UK for up to five years to work for a UK employer. To apply, an employer needs to sponsor you. Your job will also need to be eligible for the visa.

    That said, there is a long list of occupations in the UK that need filling including nurses, teachers and engineers so if you work in these jobs, you’ll have a big advantage when applying.

    Learn more on our blog, “The great UK skills shortage:5 occupations that can help you move abroad”.

    Why stay to work in the UK?

    There’s no doubt that having a UK degree is valuable. But getting UK work experience afterwards? That’s priceless.

    The UK is also an excellent place to settle. According to the OECD Better Life Index, the UK ranks above average in important areas like health status, civic engagement, jobs and earnings, education and skills, and environmental quality.

    Not to mention, people who work 5 days a week get lots of holiday time – 5.6 weeks a year!

    If you want to move to the UK to study and work, PTE Academic can help you get there. Our computer-based, unbiased English language proficiency test at PTE Academic is approved by the UK Home Office for all visas including student and post-study work visas.

    Learn more about PTE Academic UKVI.