Last Updated on November 26, 2020
Studying abroad is undoubtedly a great way to develop additional social, academic and language skills, while adding unparalleled depth to your university experience. Study overseas can improve your university years as well as ultimately give you a competitive edge when it comes to your job search as recruiters are looking for those who have actively used various ways to expand their experience.
While it is true that some people would prefer to explore the US, UK, and Canada and other countries. Studying in the New Zealand offers a variety of unforgettable experiences.
New Zealand over the years has demonstrated that they are passionate about education by making various scholarships available to students, having a lesser age restriction on prospective students and some of their universities being ranked one of the best in the world they include; University of Otago, University of Aukland, University of canterbury e.t.c
Their cost of living in most cities in the country is quite affordable, with food being relatively cheap especially when visiting local restaurants. Asides these if you love adventure then there are lots of activities you can be involved in during long vacations such as; water rafting, skiing and mountain biking.
Many international students travel New Zealand for their graduate studies so that they can receive a better education than they might have at home. But as college costs continue to skyrocket, most students find it nearly impossible to pay for their education without financial aid. Sometimes, even though you may have calculated a rough budget for your expenses during your studies at school, other expenses may take the form of:
- Travel expenses
- Insurance
- Cost of books/laboratory fee
- Library/Examination fee
- Buying a new laptop
- Student field trips etc.
These unforeseen expenses can put a strain on your financial budget and if you do not have any other source of income in the form of bursaries, scholarships or part-time jobs, you may need to apply for a loan.
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What Is A Student Loan?
A student loan is money borrowed from the government or a private lender such as a bank or financial institution, or from other organizations to pay for college education.
Student loans were created to aid students who are willing to study but do not have sufficient funds due to the high tuition fees in the country.
The money can generally be used for tuition, accommodation, books, or other costs. Student loans are different from scholarships and grants which don’t have to be paid back.
How to Get Student Loans to Study in New Zealand?
Institutions who give out loans to international students are private financial firms in New Zealand. These firms work alongside schools in the New Zealand, you might have to find out which firms your school has partnered with as regards giving loans to international students.
You can also make use of internationalstudentloan.com to find out your school’s eligibility and application procedures. It is also important that you compare the interest rates, repayment terms, and duration before putting in for that loan.
How to Choose the Best Student Loans in New Zealand?
Choosing the right student loan can make a big difference when it comes to paying off your college debt. If you’re not sure what type of loan to choose, try one that offers a low interest rate, multiple repayment options, and borrower protection.
What You Would Need to Apply For Student Loans in New Zealand?
Although different banks have different requirements, here is a list of some documents that may be required:
- Admission letter from your university
- Loan application form
- Passport size photographs
- Academic documents (certificates and Transcripts)
- GMAT or IELTS results
- Proof of residency for the student and guarantor
- Statements of accounts
Is there a Minimum Amount?
The minimum or maximum amount that you may be entitled to depend solely on the bank which you have approached for a loan with interest rates and repayment plans also varying on the financial institution.
How Long Does it Take to Repay Student Loans?
Repaying student loans is quite dependent on the interest rates of the bank which you apply to. Some banks usually start collecting payments upon graduation and securing a job whilst some start collecting payments with no interests within the duration of your program. It usually takes about 10-25 years to repay student loans depending on how fast you get a job and the interest rate.
Benefits of Getting a Student Loan?
We took a look at some of the most common reasons so many people now consider a student loan to help them through university.
1. Great rates
Government student loans have low interest rates and you don’t pay back until you’re earning a certain amount. Similarly, with a private loan, you benefit from lower, capped repayments in study.
2. Chunky tuition fees
Course costs have increased dramatically in recent years and it’s highly likely you’ll need to take a loan – government or private – to afford you annual fees.
3. Living expenses
The costs of living for three years or more can soon mount up, especially if you’re studying in one of the big cities in New Zealand. A maintenance loan from the government or private student loans can help give you a decent standard of living.
4. Peace of mind
Instead of worrying about next month’s rent, a good student loan can help give you a sensible long-term finance so you can stay relaxed, energized and focused on your studies.
5. Invest in the best
Higher education is increasingly seen as an investment in your future. Why should you deprive yourself of the life and career you really want because you don’t have the money to pay for it right now? A smart, flexible student loan can help you realize your potential and achieve your goals.
Final Take: Before considering applying for a student loan, it is advisable that you exhaust all possible options such as applying for a scholarship or bursary. In a situation where these options are not viable, then I will recommend you read thoroughly the terms and conditions of the loan you would apply for. Also, you can make use of Loan comparison tools or IEFA to get the best possible deals as regards student Loans.