Australia Education Student Loans Market Size (2024 - 2029)

The Australia Education Student Loans Market is projected to experience growth over the forecast period, driven by the country's appeal to international students due to its prestigious education system and quality of life. The market's expansion is supported by the government's Higher Education Loan Program, which allows eligible students to defer tuition costs until they reach a certain income level. While primarily accessible to Australian citizens and specific visa holders, universities also offer loans to both local and international students for various needs.

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Market Size of Australia Education Student Loans Industry

Australia Education Student Loans Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 54.34 Billion
Market Size (2029) USD 67.72 Billion
CAGR (2024 - 2029) 4.50 %
Market Concentration Low

Major Players

Australia Education Student Loans Market Major Players

*Disclaimer: Major Players sorted in no particular order

Australia Education Student Loans Market Analysis

The Australia Education Student Loans Market size is estimated at USD 54.34 billion in 2024, and is expected to reach USD 67.72 billion by 2029, growing at a CAGR of 4.5% during the forecast period (2024-2029).

A lot of international students want to move to Australia because the country has a world-class education system, an excellent climate, and a high quality of life. The government administers the Australian student loan system through the Higher Education Loan Program (HELP). Under this program, students studying approved higher education courses can defer the costs of tuition until their taxable income reaches a certain level at which repayments commence. HELP can only be accessed by Australian citizens or individuals who hold a humanitarian visa. Eligibility for student loans is generally restricted to Australian citizens, permanent humanitarian visa holders who usually reside in Australia, and New Zealand citizens who meet certain residency criteria.

Universities across Australia provide loans for local and international students. Most institutions offer both short-term and long-term loans; these can help students cover emergencies as well as pay for bigger expenses. About 2.9 million Australians currently owe a share of more than USD 68.7 billion under the federal government’s Higher Education Loan Program (Help), previously the Higher Education Contribution Scheme (Hecs). More than 1.3 million people last year each had student debts worth more than USD 20,000.

Australia Education Student Loans Industry Segmentation

A student loan is a specific type of loan made for students to assist them in covering the costs of their post-secondary education and any related expenses, including tuition, books, supplies, and living costs. Government agencies, private financial institutions, or educational institutions themselves typically provide these. These loans are designed to assist students who may not have the immediate financial means to cover the full cost of their education.

The Australian education/student loan market is segmented by type, repayment plan, age group, and end-user. By type, the market is segmented into federal/government loans and private loans. By repayment plan, the market is segmented into the standard repayment plan, graduated repayment plan, revised pay as you earn (REPAYE), income-based, and other repayment plans. By age group, the market is segmented into 24 or younger, 25 to 34, and above 35. By end-user, the market is segmented into graduate students, high school students, and other end-users. The report offers market size and forecasts in value (USD) for all the above segments.

By Type
Federal/Government Loan
Private Loan
By Repayment Plan
Standard Repayment Plan
Graduated Repayment Plan
Revised Pay As You Earn (REPAYE)
Income-Based
Other Repayment Plans
By Age Group
24 or Younger
25 to 34
Above 35
By End User
Graduate Students
High School Student
Other End Users
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Australia Education Student Loans Market Size Summary

The Australia Education Student Loans Market is poised for significant growth, driven by the country's appeal as a premier destination for international students. With a robust education system, favorable climate, and high living standards, Australia attracts students from around the globe, particularly from countries like India, China, and several others. The government's Higher Education Loan Program (HELP) facilitates access to education by allowing eligible students to defer tuition costs until they reach a certain income level. This program, along with various university-provided loans, supports both local and international students in managing their educational expenses. The market's expansion is further bolstered by Australia's economic stability, multicultural environment, and post-study work opportunities, making it an attractive choice for those seeking quality education and career prospects.

The market landscape is characterized by a mix of government-funded and private student loans, with key players such as IDFC First Bank, ICICI Bank, Axis Bank, HDFC Credila, and Avanse contributing to its fragmentation. These institutions offer a range of financial products to cater to the diverse needs of students. Recent developments, such as Axis Bank's integration of RBI’s account aggregator framework and Avanse Financial's substantial funding, highlight the dynamic nature of the market. These initiatives aim to enhance financial services and expand access to education financing, supporting the growing number of students pursuing studies in Australia. As the demand for education in Australia continues to rise, the student loans market is expected to experience steady growth over the forecast period.

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Australia Education Student Loans Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Education Costs is Driving the Market

      2. 1.2.2 Growing Demand for Education Is Driving the Market

    3. 1.3 Market Restraints

      1. 1.3.1 Debt Burden is Restraining the Market

    4. 1.4 Market Opportunities

      1. 1.4.1 Collaboration with Educational Institutions is Providing Market Opportunities

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Current Trends and Innovations in the Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Federal/Government Loan

      2. 2.1.2 Private Loan

    2. 2.2 By Repayment Plan

      1. 2.2.1 Standard Repayment Plan

      2. 2.2.2 Graduated Repayment Plan

      3. 2.2.3 Revised Pay As You Earn (REPAYE)

      4. 2.2.4 Income-Based

      5. 2.2.5 Other Repayment Plans

    3. 2.3 By Age Group

      1. 2.3.1 24 or Younger

      2. 2.3.2 25 to 34

      3. 2.3.3 Above 35

    4. 2.4 By End User

      1. 2.4.1 Graduate Students

      2. 2.4.2 High School Student

      3. 2.4.3 Other End Users

Australia Education Student Loans Market Size FAQs

The Australia Education Student Loans Market size is expected to reach USD 54.34 billion in 2024 and grow at a CAGR of 4.5% to reach USD 67.72 billion by 2029.

In 2024, the Australia Education Student Loans Market size is expected to reach USD 54.34 billion.

Australia Education Student Loans Market Report Snapshots

Australia Education Student Loans Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)