Invest in the next skill without putting the next move on hold.
Private courses, licences, certifications and professional development do not always qualify for government-supported study loans. Loan Location can help you compare whether a personal loan could fund the opportunity while keeping the repayment, fees, loan term and total cost clear.
Quick answer
What is an education or upskilling personal loan?
An education or upskilling personal loan is a personal loan used for approved study, training or professional-development costs. It may be considered where the course or expense is not covered by a government-supported loan, employer assistance or provider payment plan.
The loan provides an approved amount with regular repayments over an agreed term, subject to lender assessment.
What can it fund?
Common education and training expenses
Personal loans may be used for a range of approved education and upskilling purposes, depending on lender policy.
Private courses
Approved courses delivered by private education or training providers.
Professional certifications
Industry qualifications, accreditation and recognised professional development.
Licensing requirements
Approved licences or qualifications required for work or career progression.
Short courses
Skills-based courses that may not qualify for government-supported study finance.
Equipment
Certain approved equipment required to complete study or training.
Course materials
Approved textbooks, materials or other required study expenses.
Trade upskilling
Approved technical training, tickets and additional qualifications.
Career development
Other eligible education costs connected with professional growth.
Why some borrowers use them
Not every useful course comes with government study finance
Government-supported study loans do not cover every education provider, course or training expense. Some private courses and professional programs require full or staged payment directly to the provider.
In those situations, a personal loan may provide a structured way to fund approved costs rather than delaying study until the entire amount has been saved.
Start with the outcome, not the loan: consider the course cost, expected benefit, repayment and other available funding before taking on new debt.
HELP & HECS considerations
Should you use a personal loan to repay HELP or HECS debt?
Some borrowers ask whether replacing some or all of a HELP debt with a personal loan could improve cash flow or help with another lending goal. It is not a decision that should be made from the HELP balance alone.
HELP debt is different from ordinary commercial debt. Compulsory repayments are linked to income, while voluntary repayments can be made directly to the ATO. HELP balances are also indexed rather than charged a standard personal-loan interest rate.
Income-contingent study debt
- Compulsory repayments depend on income
- Voluntary repayments can be made directly to the ATO
- Indexation is applied under government rules
- No ordinary fixed personal-loan repayment schedule
- Treatment by lenders can vary when assessing borrowing capacity
Commercial borrowing
- Regular contractual repayments
- Commercial interest and fees apply
- Repayment continues regardless of income changes
- Creates a separate liability for future lending assessments
- May cost more than leaving the HELP debt in place
Do not assume replacing HELP debt improves borrowing capacity. Different lenders assess HELP and personal-loan commitments differently. Any strategy should compare the actual lender assessment, repayment difference, interest, fees and long-term cost before proceeding.
The bigger picture
Education finance should fit the plan after the course
Education may be intended to improve skills, income or career options, but the finance used to pay for it can affect the household budget before those benefits arrive.
Before you borrow
Important things to consider
Interest and fees
Personal loans are commercial debt, so interest and lender fees increase the overall cost of the education.
Repayment while studying
The loan repayment generally continues even if study temporarily reduces your available income.
Future financial goals
The new liability may affect later home-loan, refinance or other borrowing plans.
Other support may exist
Employer support, provider payment plans or government-supported options may reduce the amount that needs to be borrowed.
Other funding options
Alternatives to an education personal loan
Government-supported study finance
Eligible courses may qualify for HELP or another government-supported education funding arrangement.
Employer-funded training
Some employers contribute towards courses, qualifications or professional development relevant to the role.
Provider payment plans or savings
Instalments, staged payments or delaying study while saving may reduce the amount that needs to be financed.
How Loan Location helps
Start with the course and the wider financial plan
You do not need to know which lender or finance structure you want before speaking with us.
Loan Location can help review the course cost, available funding alternatives, your existing commitments and how a personal-loan repayment may fit with your broader financial goals.
Define the study cost
Review tuition, required materials, payment dates and other approved expenses.
Check other funding
Consider government support, employer assistance, provider plans and savings.
Compare suitable lending
Review personal-loan rates, fees, terms, repayments and lender criteria.
Consider what comes next
Make sure the loan fits both the course and your future financial plans.
Common questions
Education and upskilling personal loan FAQs
Can I use a personal loan to pay for a course?
Potentially. Approved course and training costs may be an acceptable personal-loan purpose depending on the lender and application.
Can I use a personal loan for professional certification?
Potentially. Some lenders may accept professional-development, accreditation or licensing costs as an approved purpose.
Can I use a personal loan for equipment and study materials?
Potentially. Acceptable related expenses vary between lenders, so the equipment or materials would need to fit their loan-purpose rules.
Can I use a personal loan to pay HELP or HECS debt?
A borrower may be able to use personal funds to make a voluntary HELP repayment, but replacing income-contingent HELP debt with commercial personal-loan debt should be compared very carefully. Interest, fees, contractual repayments and lender treatment of both debts need to be considered.
Does paying off HELP improve home-loan borrowing capacity?
It can affect a lender's assessment, but there is no universal answer. Lenders assess HELP obligations and personal-loan repayments differently, so the actual borrowing outcome should be modelled before changing the debt.
How much can I borrow for education or training?
The amount available depends on the lender, your income, expenses, liabilities, credit position, loan purpose and serviceability.
Thinking about the next qualification or skill?
Tell Loan Location what you are studying, what it costs and what other funding options are available. We can compare suitable personal-loan options and help you understand how the repayment may fit with the bigger plan.
Note: This is general financial information only and does not take into account your personal objectives, financial situation or needs. Lending criteria, rates, fees, approval timeframes and product availability can change. Approval remains subject to lender assessment. HELP and other government study-loan rules can change over time. Check current Australian Government and ATO information before making decisions about voluntary HELP repayments or replacing government study debt with commercial borrowing.