Student payday loans

Payday loans for students

Information verified correct on December 7th, 2016

Studying and need extra cash? Short-term loans could be the fast and convenient solution you need.

Payday loans for students are short-term loans designed to loan cash to cover your financial commitments until your next payday. These types of loans are offered anywhere from $100 to $2,000 to help students deal with different financial situations. This could include paying for your phone bill or emergency costs.

Find out how these loans work and if they are an option for you to consider.

Sunshine Short Term Offer

Sunshine Short Term Offer

This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to get approved for up to $2,000.

  • Loan Amount: $2,000
  • Loan Term: 9 weeks
  • Turnaround Time: 30 Minutes - conditions apply
  • Total Cost of Borrowing $100: 20% of borrowed amount + 4% of borrowed amount each month
  • Bad credit borrowers OK
  • Quick and Easy Approval
  • No Credit Checks - Must be employed

    Comparison of payday loans for students

    Rates last updated December 7th, 2016
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    Warning about Borrowing

    payday-warningDo you really need a loan today?*

    It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

    Check your options before you borrow:

    • For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
    • Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
    • If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94

    The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.

    * This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.

    How does a payday loan work for students?

    Payday loans for students are designed to offer emergency funding for students. Most students do not have steady income and may have a problem getting approved for standard loans. Payday loans offer short-term financing with lenient lending criteria and very short approval times, allowing students to access emergency funds that they can repay when they get income from other sources.

    Students need to provide their identification details and show that they can repay their loans by providing 90 days worth of bank statements to be potentially approved for a payday loan. The online application and approval process removes the need for any paperwork or face to face meetings, ensuring that you might get your cash faster. Remember that you may be required to pay for the loan in less than a month depending on the terms of your particular loan, and that the interest rates are a lot higher than what you’d normally find in a personal loan.

    Interested in a student credit card instead?

    How much will the loan cost?

    It's important to educate yourself before taking out a payday loan. It can seem an easy thing to do, but you need to be aware of restrictions that lenders have in terms of interest and fees so you don't get ripped off. For loans of under $2,000 that have terms of between 16 days and one year, here are the fees they are able to charge:

    • A one-off establishment fee that is 20% of the principal amount borrowed
    • A monthly account-keeping fee that is 4% of the amount borrowed
    • Relevant government fees/charges
    • Enforcement expenses if you fail to pay back the loan

    Are students eligible for payday loans?

    To be eligible for a payday loan you need to be over the age of 18 and in receipt of a regular income. But what about:

    • If you're a casual employee. Lenders need to see evidence of a regular income, but some will accept casual employees. You need to show that you've been in receipt of an income for at least three months to be eligible.
    • If you receive Centrelink. Many lenders consider those receiving Centrelink benefits for short-term loans. You may need to earn less than 50% of your income from Centrelink, but you may still be eligible if you're unemployed.
    • If you have bad or no credit. Payday lenders are very flexible when it comes to your credit situation. Many will accept your application if you have a default or even two. If you're unsure, it's best to check before you apply.

    How students can compare their options

    • Loan term. 
      Being a short-term loan, a payday loan for students will usually have a term of between 16 to 30 days depending on how much you borrow. When choosing a payday loan, consider when you are likely to get your next income so that you can match your repayments to that and avoid late payment penalties. Most payday loans will have terms of between 16 days and one year so go for a term that suits your finances.
    • Approval time. 
      The whole point of applying for a payday loan is to avoid waiting around for approval and to hopefully get your cash instantly. It's important to compare your options and choose a payday loan company with a fast and easy online application process which allows you to apply and get approved for a loan within a few minutes, with no paperwork, meetings or judgments required. Of course, it will always come down to your financial needs and goals.
    • Interest charges. 
      The fees and charges of a payday loan can work similar to an interest rate calculation. Compare the APR on different payday loans for students to ensure you avoid paying exuberant fees especially if you miss a repayment. Payday loans usually have high interest charges, so be extra careful when settling on a particular one and take time to shop around to get a relatively cheaper short-term solution to your financial burdens.
    • Late payment fees. 
      While shopping around for a payday loan, be sure to read the fine print to avoid being caught off guard by crippling late payment penalties. Borrow what you need and be sure that you can manage your repayments to avoid falling into lender’s trap and having to pay outrageous amounts in penalties and interest fees.
    • The application process. 
      You should consider a lender with a reputation, a simplified online application process and an approval that allows you to find out if you have qualified for your loan in minutes. Funds should also be preferably sent to your bank account that same day if approved.

    Peter's payday

    student thinking about a loanPeter got a nasty shock when he checked his bank balance on Tuesday morning. He had spent a lot of money on food and petrol and had bought his roommate an expensive birthday present – more expensive than he could afford. It was still two weeks until he got paid from his part-time job and three weeks until he receives his next Centrelink payments, and the money he had in his account wasn't going to be enough for his rent and everyday expenses.

    His employment situation and income meant he wasn't eligible for a credit card or personal loan for a bank, and they wouldn't be approved by the time he needed it. He considered a payday loan as a one-off, short-term alternative. He found that he was eligible for a few different payday loans, so he compared his options and found one that could get him the money he needed. He submitted his application online and received his loan a few hours later.

    What are the risks in obtaining a student cash loan?

    • Unable to make your repayments. It is important to keep in mind that like all short-term loans, payday loans for students always have high interest rates. This could mean that by the time you’ve paid off your payday loan, there won’t be enough funds in your account to carry you to the next day. This cycle can be very unhealthy for your finances.
    • Overcharged with fees. If you are to take up a payday loan, be sure to make your repayments in time, as such loans usually carry heavy penalties for missed repayments. Paying exuberant fees for late payments is already a big problem for people with regular income let alone students, and it can suck you into a cycle of debt and even ruin your credit rating, making it harder to access a mortgage in future.

    Frequently asked questions

    How much can I borrow?

    Most such loans will allow you to borrow anywhere from $100 to $1000 to be repaid on a term of 16 to 30 days. The length of your term is partly determined by your loan amount and the length of your pay cycle i.e. monthly, fortnightly.

    What information is required with your application?

    For most payday loans for students, you are required to be an Australian citizen or have a student’s Visa, and you are also required to upload bank statements with your application as proof that you will be able to handle the required repayments.

    When will the funds be available?

    Once approved, the funds should be wired to your bank account that same day (if you apply before 15:00) or no later than the next business day. Processing and approval of the loan usually takes less than 60 minutes, but this can vary depending on the lender.

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