Securing a Loan of $20,000 with Bad Credit: Strategies for Pursuing a Master's Degree in Australia

Introduction

Planning to study for a master's degree in Australia is an exciting next step, but the financial aspect can often be a hurdle. This guide is designed to help you navigate the complexities of securing a loan of $20,000 (AUD) despite having a less-than-perfect credit history. We will cover essential costs, including pre-arrival expenses, tuition fees, and living expenses, to give you a comprehensive understanding of the financial landscape.

Pre-Arrival Costs

Before your journey begins, several costs need to be addressed to ensure a smooth start. These include the cost of standardized tests, visa fees, and health insurance.

English Language Tests

For non-native English speakers, the cost of English proficiency tests is often the first hurdle. Key tests and their corresponding fees are shown below:

Test Cost (AUD) Cost (INR) IELTS 970 46,881 TOEFL IBT 109 5,533

Visa Fees

A student visa subclass 500 is required to study in Australia. The cost is around AUD 620 (29,187 INR), which includes the application and processing fees.

Overseas Students Health Insurance (OSHC)

OSHC is mandatory and typically costs AUD 438 (20,657 INR) per year. This provides essential health coverage while you are in Australia.

Tuition Fees and Academic Expenses

The overall cost of studying in Australia can be quite significant. For international postgraduate students, the average tuition fee is AUD 31,596 (US$22,700) annually. However, you may also need to consider:

Tuition Fee Details

Tuition fees vary by university and the specific program. For instance, ANU's typical international undergraduate degree tuition fees range from AUD 36,400 (US$26,150) to AUD 43,680 (US$31,380). Graduate programs start from AUD 36,480 (US$26,200) and can go up to AUD 45,600 (US$32,760).

PhD programs cost similarly from the lower end of the scale to the higher end, typically starting from AUD 41,280 (US$29,650).

Additional Costs: Student Services and Amenities Fee

In addition to tuition fees, you may need to pay the Student Services and Amenities Fee, which ranges from AUD 298 (US$214) to AUD 335 (US$246).

Cost of Living in Australia

Post-arrival expenses include living costs such as accommodation, food, utilities, and entertainment. Let's break down these expenses:

Average Weekly Expenses

To cover basic living expenses, you can budget around:

AUD 85 (US$61) AUD 440 (US$317)

However, these figures can vary based on your living arrangements, which can range from shared accommodation to a private rental.

Strategies for Securing a Loan with Bad Credit

Securing a loan of $20,000 (AUD) with bad credit can be challenging, but not impossible. Here are some strategies to consider:

1. Borrowing from Local Banks

Many local banks and credit unions in Australia offer student loans with flexible credit requirements. The application process often involves demonstrating your academic qualifications and financial needs.

2. Alternative Lenders

Alternative lenders may offer more flexible credit, but it's important to compare different options and read the terms and conditions carefully.

3. Government Aid and Scholarships

Explore government aid and scholarships, including the Australia Awards and other educational grants. Applying for these can help alleviate some financial burden and provide funding for tuition and living costs.

4. Part-Time Jobs and Scholarships

Consider part-time jobs to supplement your income and look for additional scholarships or grants from universities and other organizations.

Conclusion

Securing a loan of $20,000 (AUD) for a master's degree in Australia is feasible, even with bad credit. By carefully planning your finances and exploring various funding options, you can make your dream of studying in Australia a reality. Remember to start early and apply for multiple options to increase your chances of success.