Victoria is renowned in Australia as being the ‘Education State’. When it comes to taking out a personal loan to cover education costs, the state also stands tall in comparison to the others in Australia.
What Percentage of Education Loans are Settled in Victoria?
In terms of how education loans are settled across Australia, Victoria is the runaway leader, with 57.9% of all education loans issued to residents of the state.
The chart below highlights the extent to which Victoria is leading Australia in this respect. Note there is no data for Western Australia and Tasmania.
After Victoria, the next most popular state for education loans is Queensland, followed by New South Wales.
How Does This Compare to All Other Personal Loan Types?
Across Australia and the personal loan marketplace as a whole, 25.5% of all personal loans are settled in Victoria, meaning education loans are twice as popular in comparison to personal loans overall. The table below highlights this disparity as well as the trend for the other states.
While education loans are twice as popular in Victoria, we see the opposite trend in New South Wales, with the education loan figure less than half the overall loan number.
How Does This Compare to Other Loan Types?
How does this data compare when looking at other specific loan types?
Looking specifically at Victoria as a starting point, it is noticeable how the numbers compare with the other states and especially to New South Wales when it comes to home renovation, travel, and car loans.
We’ll look further at what differences between the states this identifies, but first let’s focus on why the education loan figure is so high in Victoria.
Why is Victoria the Education State?
Before we look specifically at Victoria, it’s important to recognise Australia’s growing prominence within global education in general. The Times Higher Education website, considered a global authority in this subject, now rates six Australian universities within the prestigious Global Top 100.
While it is possible that Victorians may be taking out education loans to enroll onto courses either interstate or even overseas, the presence of two of Victoria’s universities in Australia’s top five means that high numbers of students are choosing to stay at home. This is great news from an Australian perspective, as students are borrowing substantial sums of money which then go straight into these institutions that are continuing to grow and aiming to become global leaders. There’s also the chance that the education loan numbers for Victoria (and indeed across Australia) include significant numbers of ‘mature students’ who may or may not already have a degree that are looking to fund further education and learning.
Indeed, with Ray Morgan statistics indicating that 40% of education loans across Australia are issued to people earning over $50,000, this does appear to be happening, though this number is highly likely to include parents taking on borrowing for their children to attend university.
What and where are the opportunities to learn at world class universities in Victoria?
University of Melbourne
Australia’s second oldest university, founded in 1853 two years after the University of Sydney, the University of Melbourne is now regarded as the finest in the country and ranks 33rd globally.
In attending the University of Melbourne, Victorians will join over 45,000 fellow students, including 12,000 from over 130 countries around the world, who are supported by over 6,500 members of staff. Scholars at the University of Melbourne include Nobel Prize winning physiologist Peter Doherty.
The University is renowned for its research arm, spending over $1.1billion annually on research. It has also developed a number of innovations that have been commercialised, including Relenza, the anti-viral flu drug, and the rotavirus vaccine.
One final reason it is so popular and well regarded is the implementation of the ‘Melbourne Curriculum’ in 2008, which gives the university a different study path – students choose their own! – and a wider range of options to other institutions across Australia.
Monash is young for a university, having only been founded in 1961, but is already one of Australia’s best regarded educational institutions and is becoming well known globally.
In terms of student numbers, Monash is well established as the largest in Australia, home to 60,000 students. Studying at Monash may make it easier to access overseas placements as the university also has campuses in South Africa and Malaysia, as well as learning centres in Italy, India, and China.
Ranked as the fifth best university in Australia and 73rd globally, Monash ranks in the global top 50 for the Engineering and Technology, Arts and Humanities, and Clinical, Pre-clinical and Health subject areas.
What’s the Contrast Between Victoria and the Rest of Australia?
The easiest conclusion to draw, as we do in the title of this article, is that Victorians are borrowing for the future by investing their personal loans in education. Elsewhere across Australia, people in other states are more focused on living for now, and enjoying the benefits of undertaking home renovation projects, or enjoying a once in a lifetime holiday or a new car.
Though it might seem like Victorians are doing the smart thing in borrowing for the future, there’s nothing wrong with Australians across the rest of the country who prefer to live for today. If they’re happy with their job and their life circumstances, they perhaps don’t need to take out an education loan, and can instead use their loan to take a holiday, give their home a makeover, or see more of Australia or the wider world.
If you are looking for an education loan, or any other type of personal loan to help you invest in your future or to get those things you want now, then NOW Finance can help. Get started by clicking here to get your interest rate and know exactly what you’ll be able to borrow and at what rate.
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