Education Loan for Australia

Starting June 1, 2023, student loans in Australia will see an increased indexation rate, rising from 3.9% to 7.1%. This change will impact students with HELP loans under the Higher Education Loan Programme. HELP loans do not accrue interest but are adjusted annually based on the cost of living index. 

As the cost of living or inflation rises, so does the outstanding student debt. The indexation maintains the loan's real value, aligning it with the Consumer Price Index (CPI) increase. The indexation figure is calculated each year after the March CPI announcement and added to the debt on June 1. 

Indian students with education loans from Indian banks need not worry, as indexation only applies to those with HECS-HELP in Commonwealth Supported Places. Australia's reduced inflation of 7% in 2022, compared to 7.8% earlier, makes it a favorable option for Indian students. A new education agreement, the "Mechanism for the Mutual Recognition of Qualifications," will recognize Australian degrees in India for further education. Australia's renowned universities and student-friendly policies continue to attract Indian students seeking advanced degrees.

Last Updated - 25/07/2023

The Australian Department of Home Affairs recently announced that TOEFL iBT will be temporarily unavailable for visa purposes in Australia from July 26, 2023, until further notice. The pause is a result of revisions being made to the test by ETS, the organization conducting the TOEFL and GRE exams. 

The Australian government is currently reviewing these changes to ensure they align with visa application requirements. During this period, applicants can use other recognized English proficiency test results, such as IELTS, PTE, CAE, and OET (for health professionals), for their visa applications. Test results obtained before July 25, 2023, will remain valid for visa purposes, except for applications related to certain subclasses that require scores from a single sitting. For these cases, IELTS test results with One Skill Retake (OSR) will be accepted. 

Last month, ETS introduced updates to optimize the TOEFL iBT experience, shortening the test duration to less than two hours. Applicants are encouraged to stay informed about further updates on the availability of TOEFL iBT for visa purposes as the Department of Home Affairs continues its review.

Last Updated - 28/07/2023

Australia has made substantial strides in its visa processing procedures, drastically reducing wait times for several popular visa categories. The Australian Department of Home Affairs recently unveiled streamlined visa systems, resulting in a remarkable reduction in average processing durations.

Processing time for Student Visas has been slashed to 16 days, down from the previous 49-day wait earlier this year. Likewise, Temporary Skilled Shortage 482 visas are now processed within 21 days, marking a significant improvement.

The initiative addresses concerns raised a year ago when the Department of Home Affairs faced significant delays in processing visa applications due to high submission volumes. The streamlined process is aimed at rectifying this concern.

Furthermore, the department's efforts transcend visa processing times. Permanent skilled visas are now cleared within seven months, a noteworthy reduction from the 12-month processing period in February of the same year.

The Department of Home Affairs is also actively boosting Australia's international tourism industry. The introduction of expedited online and electronic visitor visa options has led to a remarkable 140% increase in visitor visa holders. This surge greatly contributes to an industry crucial for employment generation, investment, and overall economic growth nationwide.

Last updated- 17/08/2023

Australia has taken swift action to close a visa loophole that allowed international students to enroll in cheaper vocational courses as soon as they arrived in the country. The government introduced this change to prevent misuse of the "concurrent study" rule, initially designed to help international students prepare for the job market with short courses.

Recent investigations uncovered that many students were exploiting this rule to switch from university courses to less expensive vocational options. Notably, the number of concurrent enrollments surged to 17,000 in the first half of 2023, compared to 10,500 for the same period in 2019 and 2022 combined.

Education Minister Jason Clare stated that this move aims to prevent unauthorized providers from enrolling students prematurely and emphasized the importance of maintaining the integrity of Australia's fourth-largest export industry, international education.

Moreover, the government will increase the savings required for international students to obtain a student visa, effective October 1st. Prospective foreign students must show evidence of A$24,505 ($15,693), reflecting a 17% rise to cover higher living costs.

Last Updated -28/08/2023

Indian students preparing for the International English Language Testing System (IELTS) exam can now benefit from a valuable new feature – the "One Skill Retake." This feature, available at select IELTS Computer Delivered test centers in India, permits test takers to retake a single skill (Listening, Reading, Writing, or Speaking) if they fall short of their desired score on their first attempt.

Recognized by authorities such as the Australian Department of Home Affairs and numerous universities, the IELTS One Skill Retake promotes fairness by giving test takers an opportunity to improve their performance in a specific skill area.

Warwick Freeland, Managing Director of IELTS at IDP Education, stated that this innovation underscores IELTS' commitment to helping test takers reach their potential and assists organizations in selecting suitable candidates. Piyush Kumar, Regional Director of South Asia and Mauritius at IDP Education, noted that this feature was developed in response to feedback from test takers who preferred a targeted approach to score improvement.

The IELTS One Skill Retake is available for both Academic and General IELTS and offers Indian test takers greater flexibility in achieving their study and migration goals. Upon choosing the retake option, students will receive a new Test Report Form (TRF) containing their improved score, which can be used for migration and study purposes.

The Australian government has raised the financial requirements for Indian students applying for Australian student visas. As of now, applicants must show a minimum savings balance of $24,505, a 17 percent increase. This change is aimed at ensuring that students arriving in Australia have enough financial support during their studies and discourage immediate job-seeking.

In July 2023, 131,640 international students arrived in Australia, up by 60,420 from the previous year. To curb students seeking employment over academics, the government introduced work hour limitations of 48 hours per fortnight, effective from July 1, 2023. These restrictions followed the removal of work restrictions during the COVID-19 pandemic.

Additionally, the government plans to scrutinize high-risk international students more closely to combat fraudulent visa applications. Regulations are in development to suspend students with documentation discrepancies.

High-risk education providers will receive suspension certificates under Section 97 of the Education Services for Overseas Students (ESOS) Act, preventing them from recruiting international students. This decision comes after several Australian universities imposed bans or restrictions on students from India and other South Asian countries due to a surge in fraudulent visa applications.

Last Updated - 20/09/2023

Australian universities are making a comeback from the pandemic's impact on staff numbers. In 2022, they recovered a third of the 9,000 jobs lost during the initial COVID-19 year, with total employment at 124,000.

Recovery was strongest in major research-focused universities, boosted by Chinese student fees. UNSW Sydney, University of Melbourne, and University of Queensland each added 500+ staff, while Sydney and Monash grew by 300, signaling expansion.

However, not all universities rebounded equally; some added few staff, and Australian Catholic University (ACU) recently announced more job cuts.

Other data sources, like the Jobs and Skills Australia dashboard, showed a resurgence in online job ads for lecturers and tutors, doubling pre-pandemic levels.

This coincides with rising international student enrollments, nearing pre-pandemic levels, with 100,000 foreign students in July.

Universities may also benefit from increased domestic student fees, rising 7.8% due to inflation next year, though offset by falling enrollments.

In 2022, teaching-only academics rose by 8%, research-only jobs fell 1%, and casual work grew by 2%, surprisingly stable. Research-active teaching academics also increased over 2%, despite research funding removal from domestic teaching grants. Non-academic staff rose by 1% in 2022, reversing a 2021 decline, reflecting shifting staffing dynamics.

Last Updated - 20/09/2023

Australia is taking strong actions to stop scams involving international student visas. The Education Minister, Jason Clare, the Skills Minister, Brendan O'Connor, and the Home Affairs Minister, Clare O'Neil, are working together to address this issue after a quick review by the government, which was reported by the Xinhua news agency.

They are changing the rules outlined in the Education Services for Overseas Students Act 2000. These changes will make sure that only good and trustworthy institutions can provide education to international students. Also, they will prevent education providers from having too much influence from middlemen.

To protect the quality of education, private colleges will not be allowed to pay middlemen to convince international students to choose them over other schools.

Australia is also planning to closely watch the attendance of international students to make sure they're not just using student visas to work. There has been a big increase in the number of student visa holders in Australia - it reached 660,765 by June, which is 203,000 more than at the start of 2023, as reported by the Australian Financial Review.

International education was a big contributor to Australia's economy in 2022, bringing in A$26.6 billion ($17 billion). It was the fourth-largest source of income for Australia, after coal, iron ore, and natural gas.

Last Updated - 04/10/2023

Starting October 1, 2023, international students applying for Australian student visas must show savings of $24,505, a 17% increase from 2019 levels, accounting for inflation. This requirement applies to the student alone, with higher financial criteria for dependents.

This change aims to ensure students can support themselves during their studies and reduce the risk of exploitation due to job pressure. The government will scrutinize high-risk applicants and demand extra documentation to prevent fraud.

Financial requirements for the Australia Study Visa remained unchanged from 2019 due to the pandemic, unlike the pre-pandemic annual updates.

Australia has closed a loophole allowing quick shifts from study to work-focused arrangements for students in the country for under six months. In 2023, concurrent enrollments surged to 17,000 in the first half, compared to 10,500 in 2019 and 2022 combined.

To maintain the international education system's integrity, the government announced measures to support genuine international students and protect its reputation as the fourth-largest export. Minister for Home Affairs Clare O’Neil affirmed a crackdown on exploitation, stating that "the party is over" for those plaguing the system.

Last Updated - 10/10/2023

Australia has implemented new regulations affecting international students planning to study there. Under these rules, international students can no longer enroll in two courses simultaneously within the first six months of their primary course. This means they must wait for six months before starting a second course. These changes aim to maintain the integrity of Australia's education system by addressing unethical practices by some institutions that exploited concurrent enrollment policies.

Concurrent enrollment allows students to sign up for two programs at once, subject to specific eligibility criteria. The primary goal of this alteration is to enable students to focus on their primary field of study during the vital initial months, reducing academic stress, and promoting a deeper understanding of their subjects. 

Existing students already enrolled in multiple courses won't be affected. However, students who want to enroll concurrently after completing the initial six months of their primary course will require approval from their educational institution.

Some exceptions to these rules exist. Students can still concurrently enroll in courses that are part of an approved combined or double degree program. Additionally, students facing exceptional circumstances or requiring concurrent enrollment for valid reasons may request an exemption from these regulations.

Last Updated - 17/10/2023