Prime Highlights
- Spark Finance increased its funding facility to $35 million.
- Maximum student loan size has risen to $200,000.
Key Facts
- Spark Finance is a Sydney-based education lender.
- Permanent residents can now access its loan programmes.
Background
The student finance industry is getting a small push with another $25 million flowing into Sydney’s Spark Finance lending facility, bringing the total pledged money to $35 million all up. The rise is indicative of rising investor confidence in education-related lending despite the current uncertainty in the international education market.
With the growth in funding, Spark Finance will be able to raise the maximum loan amount from USD 150,000 to USD 200,000. The company has also broadened its criteria, allowing permanent residents of Australia and New Zealand to apply for loans, alongside citizens.
The development coincides with the growing expenses of education and tougher financial conditions associated with education in Australia among students. Availability of funds has now become a key factor for students who are not eligible for a loan or other financial products because of insufficient credit history or a lack of guarantors, industry observers say.
Many of the international students it has attracted are taking courses related to Australia’s skills shortage areas, such as healthcare, engineering and technology, Spark Finance said. They continue to be key areas of interest for policymakers looking to fill workforce gaps and boost economic prosperity.
The education sector’s funding growth also reflects ongoing strong investor confidence in parts of the Australian education sector in the face of regulatory changes, visa-related pressures and changing student preferences.
Discussions of student migration and policies for it have been dominated by issues of student caps and compliance, while the cost of education has not been discussed as much.
This is being filled in with specialist education financing providers that provide specific loans for domestic and international students. Demand for such products is said to be on the rise as it is aligned with the changing needs of students seeking higher education in Australia.
The investment marks the latest in a string of long-term investments in education finance, especially in education sectors that dovetail with national workforce interests.
