How a Personal Loan Can Help Uni Students
University life is an exciting journey, but it often comes with financial challenges. From covering essential school supplies to managing housing costs and unexpected expenses, staying afloat can be tough for students. Personal loans can be a flexible financial tool that may help ease this burden, allowing students to focus on their education without unnecessary stress. In this blog, we’ll break down the most common costs students face, how a personal loan can help uni students, and explore other ways to get the help you need–without getting a loan!
Overview:
- What financial problems do university students face?
- How a personal loan can help uni students?
- How to get financial support without a personal loan
What financial problems do university students face?
Before we dive into how a personal loan may benefit uni students, it’s important to examine what costs uni students face. Many students face financial hardship when accessing tertiary education, with some of the most common costs including:
School Supplies
Students are often so hyperfocused on getting the grades they need to get into university, that they may not think about the costs they’ll face once they get there. School supplies are one of the most common costs students will face, with research showing that students at the University of Queensland spend $620 – $1400 on school supplies per year. New students are often hit hard with the costs of
- Textbooks
- Laptops, printers, and other necessary electronics
- Stationary supplies
- Professional work attire for presentations, talks and networking events
- Specific supplies for their degree/major such as a quality camera for a photography student or art supplies for an art student
Housing costs
Depending on where the university is you may have the option to stay at home and save money. However, some students may need to move out of home and into university housing and there are many housing costs to consider. With the initial move students should budget for:
- Furniture
- Cleaning supplies
- Bedding
- Bathroom supplies
- Kitchen equipment
- The bond payment or any deposits needed
These initial costs are expensive but hopefully most will be a one time payment. However there are weekly costs for housing and living that every student should factor into their budget, including:
- Rent
- Utility bills such as water, electricity, internet, and gas ,
- Phone bill
- Groceries
- Transportation
- Entertainment such as streaming services and subscriptions
Some universities around Australia offer on campus accommodation or university owned apartments like UniLodge for university students. This accommodation is sometimes much cheaper than looking for private accommodation, but may be smaller, cramped and you might need to share with a roommate.
Credit card debt
As a university student entering the real world, keep in mind the importance of budgeting and not wasting all your money on pointless things. One of the easiest ways to stick to a budget is to avoid credit cards and Buy Now Pay Later options. It can be easy to get into debt with credit cards thinking you have the money to pay for everything now and forgetting you’ll have to pay everything back later.
If you are already struggling with credit card debt, check out our blog with 6 ways to improve your credit score.
Entertainment
Similar to credit cards, once you are out of your childhood home, it’s difficult to say no to things you can’t afford, such as outings with friends, takeout nights and partying. However, the cost of entertainment is a key contributor when looking at the financial struggles of many university students. If you’re wanting to enjoy uni life and go out with friends, there are ways to make going out more budget friendly.
Tips to spend less on entertainment include:
- Pre-drinks at home and only buy 1 or 2 when out
- Have a home cooked dinner party or potluck dinner
- Spend time outside to social
- Picnic in the park
- Workout with friends
- Budget one big night out once a month
- Limit take out / restaurant meal to the weekend
For more ideas check out our blog on ways it is possible to be social on a budget.
Exam block stress
Studies show that 80% of domestic students have a casual/part time job. While these jobs may help relieve some financial pressure for students , they can also add extra stress onto students. Particularly during exam blocks, students may feel the pressure of balancing work and study commitments, and need to take time off to compensate. While taking time off work allows more time to focus on studying, it can also increase financial hardship or distress. Students may be able to alleviate some of this pressure by planning for time off work during exam block in advance and budgeting accordingly.
How a personal loan can help uni students?
A personal loan can help university students in Australia by providing financial support for essential expenses such as tuition fees, textbooks, technology, or living costs. It can bridge gaps in income or funding, especially when scholarships, part-time work, or government assistance fall short. Personal loans can also offer flexibility in repayment terms, allowing students to manage their finances more effectively over time. However, students should carefully assess their ability to repay and consider the interest rates and fees associated with the loan to avoid financial strain.
How to apply for a personal loan
Once you have reviewed your individual circumstances and determined whether a personal loan is right for you, you start the process of applying for a loan. Depending on the type of loan and the lender you choose, applying for a loan generally includes these steps:
- Determine your loan needs: Identify the amount you need to borrow and ensure you can meet the repayments.
- Check eligibility: Ensure you meet the lender’s criteria, such as minimum income, credit score, and residency status. You can check out Swoosh’s eligibility criteria here.
- Compare lenders: Research banks, credit unions, and online lenders for interest rates, fees, and loan terms.
- Gather documentation: Prepare necessary documents like ID, proof of income (payslips or bank statements), and employment details.
- Submit an application: Apply online, in-person, or via phone, providing all required information accurately.
- Loan approval: Wait for the lender to assess your application, which may involve a credit check and verification of details.
- Review and accept offer: If approved, review the loan agreement carefully before signing.
- Receive funds: Once accepted, the funds will be transferred to your account, usually within a few business days.
- Repay the loan: You will need to begin repaying your personal loan as soon as you receive the funds, so it’s important to ensure you are able to make these repayments as soon as possible.
How to get financial support without a personal loan
It’s important to evaluate your individual circumstances carefully before making any major financial decisions, like taking out a personal loan. If you find that a personal loan is not suitable for you, then there are alternative ways to get financial support while you study:
- HECS-Help: HECS helps with paying off the university degree you are undertaking, effectively allowing you to not pay for the degree itself while at university instead you will be paying off your HECS over the course of your career through the ATO.
- Centrelink: Centrelink offers a range of financial support for university students, based on income and your circumstances you may be eligible for one of these student centrelink loans:
- Prac Payments: A new government payment option effective after July 1st 2025 to offer financial support for those in bachelor or masters while completing their placements. In specific fields including; teaching, nursing, midwifery and social workers.
- Scholarships: When starting university and throughout it wouldn’t hurt to look for scholarships for studies, accommodation and equipment. Most universities offer a range of scholarships depending on what your individual circumstances are.
- Family or friends: having an honest discussion with family and friends about how you’re struggling and whether they can help may be a better alternative than a personal loan or accessing government help. Ensure you are both open and honest with each other about the help you need and any expectations they may have in providing that help.
Ready to focus on learning?
Are you ready to kick your financial troubles out of your schedule and concentrate on what you went to university for? At Swoosh, we offer personal loans available to people over 18 in amounts ranging from $2200 – $5000. Our personal loans have simple, fixed term repayment schedules that you can easily introduce into your weekly budget. Apply online today!