For you to be able to finance your studies many countries offer the opportunity for a student loan. Student loans often carry a lower interest rate than ordinary loans for them to be managable for you as a student. They are often issued by the government itself or by an organization in close cooperation with the government.
This text will take you through a few examples of how student loans taklen to cover tuition fees and other expences might work. These are only a few examples of systems from over the world, it may work in a different way in your home country.
Student Loans by Country
The information listed below generally applies in the student´s home country (eg. a Danish student studying in Denmark). To find out if the rules apply for abroad studies you will need to contact the organization issuing the student loans in you country.
| Australia | Australian citizens and (with some limitations) permanent residents are able to obtain interest free loans from the government under the Higher Education Loan Programme (HELP) |
| Canada |
Full citizens and permanent residents of Canada living in any province for over a year, have the opportunity to receive a student loan provided by the federal government, in addition to loans provided by their province of residence. Student loans are issued through the Canada Student Loans Program (CSLP), they are interest free for full-time students while a student is in full-time studies. Most charter banks in Canada also have specific programs for students in professional programs (e.g., medicine) that can provide more funds than usual. Students may be eligible for loans through the CSLP on top of this line of credit, as private options do not count against government loans. There are also programs to help you if you find yourself having trouble paying back your student loans after finishing your studies. |
| Denmark | In Denmark student loans are granted for university studies by an organization called the "Danish State Educational Grant and Loan Scheme Agency". The student loans have to be payed back after the studies are through, though if you have not payed it all back within 15 years the loan is "saneret" which means you don´t have to pay it back. |
| Germany |
The eligibility for student loans in Germany is dependent on parent income, as parents are required by law to fund their children's education. For low-income families, BAföG loans take over when these obligations can not reasonably be met by parents. Half of the BAföG is a loan and the other half a grant that does not have to be repayed. After two years a certain grade must be kept to keep the BAföG grant and loan and it can be received for a maximum of five years. Repayments are regulated by income. |
| Ireland | In Ireland most major banks offer loans to students, these loans generally have lower or no interests at all. |
| India |
The system is similar in India, here it it also the regular banks which provide student loans. |
| New Zealand |
In New Zealand full-time students can claim student loans for both fees and living costs while part-time students can only claim for fees. Repayment is regulated by income. |
| Norway |
Norwegian State Educational Loan Fund (Lånekassen) is the organization issuing student loans in Norway, part of the loan is converted into a grant every semester provided that the student has passed all exams. |
| Sweden | Swedish student loans and grants are issued by the Swedish government agency "Swedish National Board of Student Aid". If you want you can choose to only take the student grant, this is popular among young students who still live with their parents. |
| United Kingdom | British university students can apply for a student loan through LEA, SAAS or their local educations and library board depending on where they live. How much you are allowed to borrow is determined by a range of factros (eg. family´s economy, wheather you will be living at home etc.). |
| United Stated |
In the US there are a few different loans that can be used for your studies at a university. - Federal student loans made out to the student directly: No money has to be payed back during the time you are studying but the ammount you are able to borrow is quite limited. - Federal students loans made to the parents: Payments start right away but the limitations of the ammount is higher. - Private student loans: These can be made out to either the student or the parent, the limits here are higher and you do not have to start payments before graduating. These loans can also be used to complement federal student loans if needed. |
As you can see, student loans and their systems are very different from one country to another, if you are going off to study abroad you will most likely receive student loans from you home country and NOT from the country you are going to study in.
>> Talk to other students about financing your studies abroad!