Proof Of Funds When Planning to Study in Australia
- August 26, 2022
- Posted by: admin
- Category: Study in Australia
One of the main reasons people get their visas denied is because their finances are not in order.
As a student visa applicant to Australia, you should prove that you can pay for the first year of your program. The ability to pay for more than one year is a bonus. You should also be able to prove that you will neither starve nor be homeless during that first year.
Visa officers in developing countries are usually on high alert to fraud when it comes to this. When an applicant brings a bank statement that shows funds transferred to their account a few days or weeks before their interview, it raises red flags. Are the funds truly available to cater for their education, or did an uncle lend them 50,000 AUD to help them get their visa, then they return the money afterwards? Parent-sponsors holding poorly-paid government positions may be subject to skepticism as well. Friends, who are sponsors may also raise questions: how strong is the commitment of this family friend? How well do they know this uncle-sponsor? When was the last time they saw him?
So, how much do you need to prove you have when applying for your visa?
First, your school fees would range anywhere from 20,000 – 50,000 AUD per year, depending on the degree program you choose. There are cheaper diploma programs but be careful when you choose them because they might raise doubts about whether you are a genuine student. Second, you will need 21,000 AUD to cater for your first year’s living costs. Third, you also need 2,000 AUD to cater for your travel expenses. On average, you need to prove that you have about 50,000 AUD. If you have dependents, say a husband or child (under school-going age), the amount increases respectively by 9,400 AUD and 4,200 AUD.
That is a lot of money! Approximately 4 million Kenyan Shillings today (September 2021). Most young people seeking to study abroad do not have that kind of money readily available.
How then do you get a hold of such funds or provide evidence of access to such funds?
If you go the sponsor way, where your parents or relative pledges to pay for your expenses, you need to prove their ability. If they expect to receive money from a business or their salary, you will need financial documents to prove this. You will also need identity documents to show your relationship. Note that your sponsor’s bank statements have to make sense. If your fee is 20,000 AUD per year and your sponsor is earning 25,000 AUD a year yet they have a family and bills to take care of, it would mean that they are spending only 20% of their income on their family and 80% on you. If your sponsor is also sponsoring others with their limited resources, it might raise eyebrows whether they can genuinely fund your studies.
If your sponsor decides to deposit the money in your account, the transaction should be three months or older. They should also show how they obtained it if asked, say from the sale of a car or a piece of land.
In some instances, you could be earning money either from wages, rental property or a business. You should explain deposits made to your account from these sources. You should be able to provide evidence including, bank statements, receipts, tax returns etc. Such funds are helpful when proving how you’ll cater for your living expenses where you already have a loan or sponsor to cater for your fees.
Loans from the government or financial institutions would also work. The government loan should cover your tuition and or living expenses. You need to provide evidence of the terms and the total amount of the loan to be disbursed. If the loan is from a financial institution, you should show proof of collateral used, the terms of the agreement and the ability to cover ongoing costs. The best evidence of access is disbursement.
There is also an annual income option. It requires an applicant to provide evidence of a personal income of at least 62,222 AUD a year. The demonstrated amount must be your parents’ or spouse’s who will not come with you. You can click here to find out more.
I have also seen some students borrow money from family and friends, then deposit it in a money market fund or any high yield fund where it gains interest daily but is withdrawable at any time. They then use this as their proof of funds, and once a year elapses, they return the money to the lenders with interest. The money has to be in your name and accessible by you. It is also only possible if the people around you trust you.
Most people consider studying abroad or educating their children abroad as an investment. In the beginning, they spend a significant chunk of money to get there. However, once they complete their education, the gains are numerous. Another advantage of studying in Australia is that you can work 40 hours a fortnight on a student visa, with the minimum wage being around 20 AUD an hour. Meaning that if you are lucky enough to work all the 40 hours and earn minimum wage, you can make up to 1,600 AUD a month, enabling you to pay your rent and cater to your everyday needs.
After graduation from a degree program, you are also eligible for a minimum 2-year temporary graduate visa. It will allow you to gain work experience, which is profitable if you decide to move back to Kenya. If you took a loan, you’d likely be earning decently high wages that will enable you to pay it back.
At the end of the day, if you are determined to study abroad and can afford it even if through a loan, go for it. Apply, ask if there are scholarships. Partial scholarships also go a long way. Talk to your family members and ask for support. You never know. It could be the best thing you ever did for yourself.