If you're an Australian apprentice and you need a loan you have 2 very different options:
TSLs have some obvious advantages: you receive a monthly payment and you won't get charged interest. You don't have to pay the loan back until you start earning above the income threshold (although your debt is adjusted for inflation each year).
But you might not meet the eligibility requirements, or need a larger lump sum. In this case you could look at a personal loan. You'll be charged interest and fees and you'll have to start repaying the loan right away.
Apprentices can take out loans to cover almost anything, from training costs or work equipment to daily living expenses.
It can be hard to get a personal loan approved as an apprentice because your income is likely low, especially during the early years of your training. And you may not have an established credit history yet.
If you want a TSL you'll need to be studying a Certificate II, III or IV level qualification in an eligible subject.
Apprentices can borrow up to $24,492 in total with a TSL over the 4 years of an apprenticeship. Eligible apprentices receive a monthly payment, with payments being higher in the first year and shrinking each year as your wages rise.
| Apprenticeship year | Payment (annual) | Payment (monthly) |
| 1st year | $9,797 | $816.41 |
| 2nd year | $7,348 | $612.31 |
| 3rd year | $4,898 | $408.20 |
| 4th year | $2,449 | $204.10 |
To qualify for a TSL you need to be:
A qualifying apprenticeship means you're undertaking one of the following qualifications:
Much like a university HECS-HELP loan, apprentices don't have to repay their TSL debt until they earn above the minimum income threshold. The threshold for 2023–24 is $51,550 a year.
Once you start earning this much you will have compulsory repayments taken from your monthly earnings.
TSL debts are interest-free but are indexed once a year according to the CPI. This means your debt will rise in line with inflation.
An apprentice can apply for a personal loan just like any other borrower. You could take out a personal loan to cover tools or equipment, or get a car loan to buy a vehicle so you can get to your job.
With any personal loan you borrow a sum of money and then pay it back over time. You repay the debt monthly, weekly or fortnightly and your lender charges you interest. You may also have to pay an upfront loan fee and a monthly account fee.
The amount you can borrow depends on:
Deciding between a personal loan and a TSL depends on your circumstances and financial needs. We've broken down the pros and cons of both to help you decide.
Australian apprentices who are required to move away from their family home for the first time can receive a Living Away From Home Allowance.
Eligible apprentices receive a weekly payment for up to 3 years, with the payment amount declining each year.
Eligible Australian apprentices can get up to $5,000 of financial assistance, paid out in 6-month instalments over 2 years. Payments are designed to help apprentices cover their living expenses.
To qualify for Australian Apprentice Training Support Payments you need to be studying a Certificate III level qualification or above in an occupation listed on the Australian Apprenticeships Priority List.
This payment is considered part of your taxable income.
Lenders don't offer specific personal loans for apprentices. Instead you simply apply for a personal loan that looks suitable and the lender looks at your income, spending and credit score when assessing your application.
If you've decided to get a personal loan rather than a TSL, for whatever reason, it's important to compare loans from a range of lenders.
Here are some tips:
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Hay I start my apprentice ship tomorrow as a cook and applied for student loan was wondering how long it takes to be approved thanks
Hi Boej,
Thanks for your question.
Please note that if you decide to apply for a product or service through our website you will be dealing directly with the provider of that product or service and not with us.
For more information on the status of your application, please contact the lender directly.
Cheers,
Shirley