Reading time: 5 min

In an increasingly interconnected world, international study experiences provide students with invaluable academic, professional, and personal growth opportunities. However, perceived financial concerns from institutions and students alike are often stated to be the reason students aren’t taking advantage of these life-changing experiences. Many assume that studying abroad is prohibitively expensive, but in reality, Australia’s OS-HELP loan is one of the most progressive and accessible funding mechanisms globally. As key student loan reforms (HECS-HELP) take effect from 1 July 2025, it is time to reframe the conversation: not about whether students can afford to go abroad, but about how we can ensure they take full advantage of this opportunity.

How Australia Stands Out in Global Study Abroad Funding

Many countries offer financial support for studying abroad, but Australia’s OS-HELP stands out due to its flexibility and accessibility. A comparative look at international student funding models highlights why Australian students are uniquely positioned to benefit:

• United States: While federal student loans and financial aid can sometimes be applied to study abroad programs, they primarily cover tuition, not living or travel expenses. Additional grants exist but are highly competitive and often limited (Federal Student Aid).
• Canada: The Canada Student Loans Program allows students to use funding for international study, but it focuses on tuition rather than comprehensive costs, making it less accessible for students looking to cover living expenses.
• United Kingdom: The Turing Scheme provides funding for UK students to undertake international study and work placements, offering support for travel, living expenses, and additional costs for disadvantaged students. However, funding is allocated to education providers rather than directly to students, and institutions must apply for grants each year, making access less predictable compared to Australia’s more direct student loan support.
• European Union: The Erasmus+ program provides grants for students to study in partner countries, covering tuition and some living costs. However, funding is capped, and the availability of grants varies significantly.
• Germany & Scandinavia: Countries such as Germany, Sweden, and Norway offer tuition-free or low-cost education, but students still face significant living expenses. Additionally, there are fewer structured government-backed financial assistance programs for studying abroad.

Australia’s OS-HELP loan is uniquely positioned as a world-leading funding mechanism. Unlike grant-based programs with strict eligibility requirements, OS-HELP offers direct financial support for travel, accommodation, and associated costs – not just tuition. Furthermore, as part of the broader Higher Education Loan Program (HELP), OS-HELP repayments are deferred until students reach a certain income level, making international study more financially viable for a broader range of students.

The Positive Impacts of Upcoming Reforms

Australia’s student loan system is already regarded as one of the most progressive globally, and upcoming reforms will further enhance its accessibility and affordability. From 1 July 2025, key changes include:

• Increased Repayment Threshold: The income threshold for compulsory student loan repayments will rise from $54,435 to $67,000, allowing graduates more time to establish their careers before repayments begin.
• Marginal Repayment System: Rather than being based on total annual earnings, repayments will now only apply to income above the new threshold, ensuring a fairer, more proportionate repayment structure (Australian Taxation Office).
• 20% Reduction in Outstanding Loan Balances: All existing HELP and OS-HELP loans will receive an automatic 20% reduction before 1 June 2025, significantly lowering the long-term debt burden for students and graduates.

These changes reinforce Australia’s position as a leader in student loan accessibility. Compared to other nations, where student debt can be crippling and repayment structures are often rigid, these updates will provide Australian students with greater financial flexibility and security.

Why This Matters for Universities and Students

The misconception that international study is financially out of reach persists among both students and university staff. However, OS-HELP, combined with these reforms and current gen z trends (see article, The 2025 Student), makes studying or volunteering abroad far more accessible than many assume. With increased financial support, universities have a crucial role to play in shifting the narrative – from concerns about affordability to strategies for maximising student participation in global learning experiences.

Australian students have a rare and valuable opportunity to access international education at a level that many of their global peers can only dream of. It is up to universities, academics, and administrators to champion this message, ensuring that financial misconceptions do not prevent students from seizing these transformative experiences.