Friday 29 September 2017
Applying for a student loan may have just got a whole lot easier with a new type of fintech that’s set to shake up the market.
It’s called Study Loans and is said to be the first online platform dedicated to providing loans to students for both vocational and higher education.
Working closely with education providers, the fintech will track student performance and provide funds as you study through ‘tranches’ - which are based on the number of units you do and when they are completed.
Think of tranches as a ‘pay as you go’ kind of deal. So whether you pass one unit or four, Study Loans will release the funds according to your course progression.
“We want to be able to help people start their career, learn a new skill, or continue to advance their career through upskilling, by being able to provide loans specifically for that education, rather than having to take out a personal loan that could be used for any number of things,” said CEO and Co-Founder, Brett Shanley.
Study Loans has raised $5 million debt equity so far, which is ready to be distributed as the first tranche to Aussie students who have already applied through the platform.
Students looking to apply for the loan should head to Study Loans’ website to check out the 20 participating course providers. But don’t worry if you don’t see your future course provider, as Study Loans are looking to expand in the near future.
While Study Loans revs up to hit the market, there are plenty of other financing options for students looking to take on vocational or higher education study.
Financing options for students:
Student loans - Student personal loans are designed to help fund your education. They often have a more lenient application criteria and have lower interest rates than standard personal loans. But you are expected to make monthly repayments - so you’ll need to make sure your budget can handle the amount.
Peer-to-peer lending -This form of lending is similar to a traditional loan, but it brings together those looking for a loan with Aussies who have money to invest. By cutting out the middleman, these loans keep costs low for borrowers, which is good news for cash-strapped students.
HECS-HELP - This is a Government funded scheme for students enrolled in Commonwealth supported institutions with no real interest charged on the loan. You won’t have to pay your student fees upfront, however, you are expected to make repayments once you start earning a salary of $54,869.
Thinking of getting a loan to study? Check out our student personal loan comparison tool.