What You Need to Know About Study Abroad Loans

Sharing some of the practical posts from my IG with everyone

Can student loans really take the pressure off?

Have study abroad costs ever made you want to give up? Maybe you could try......

Common types of study abroad loans

1. Ministry of Education study abroad loan

Eligibility

You must be a Taiwanese national, and the school you plan to attend must be one recognized by the Ministry of Education.

Annual household income of NT$2 million or less, or at least two people among the student and their siblings going abroad to study.

A high school or university diploma, or documentation of equivalent qualifications.

Studying in mainland China, Hong Kong or Macau is not covered by this loan.

Q: Can I apply for a study abroad loan to study in mainland China, Hong Kong or Macau?

A: No. According to the Ministry of Education, “abroad” does not include mainland China, so students at universities in mainland China, Hong Kong or Macau cannot apply for this loan.

Q: Can I apply for a study abroad loan for a study tour, continuing education, an internship or a student exchange?

A: No. The Ministry of Education's study abroad loan is only for going abroad to earn a master's or doctoral degree. I'll do an episode on the “學海飛颺” scholarship for exchange students later.

Q: How much can I borrow?

A: NT$1 million for a master's, NT$2 million for a PhD. Each can be applied for only once.

2. Bank study abroad loans

3. Taipei City Department of Education Hope Project

Offers interest-free study abroad loans to young people. What's special is that besides master's and doctoral students, it also covers students going abroad for professional or technical certifications (professional or technical programs of 6 months or longer). Interest for the first 10 years of the loan is subsidized by the Taipei City Department of Education, either fully or by half depending on your income tax rate.

Eligibility and conditions

Borrowers must be Taiwanese nationals with household registration in Taipei City for at least one year before the application date.

Age limit: young people aged 20~45.

The student, or the taxpayer who claims the student as a dependent, must have a net consolidated income for the most recent year, as assessed by the tax authority, below the 30% tax bracket or below the filing threshold.

Only for students applying to full-time master's or doctoral degree programs or professional/technical certification programs.

Mainland China, Hong Kong and Macau are not covered.

Any existing government or Ministry of Education student loans must be paid off.

Recipients of government-funded scholarships or study abroad grants whose funding period has not yet ended.

My thoughts~

It really comes down to two camps: government vs. banks. The biggest difference, in my view, is that government loan amounts are clearly lower, they're limited by whether you already hold other government funding or scholarships, and they can't be used in mainland China, Hong Kong or Macau. Bank loan amounts, on the other hand, are usually a bit higher with relatively few other restrictions, but it still depends on which option suits your situation best!

I've said before that a year in the US costs us at least NT$1.5~2 million on average, maybe more or less depending on how you spend. I didn't know much about this myself; it was because you said you were interested that I did my homework, asked people who had applied, gathered information and so on. Only after making this episode did I realize that the 2 million over three years from student loans is definitely not enough. So this is just to give you an idea of what options are out there, but honestly, relying entirely on student loans is unlikely to work.