Pursuing higher education in Australia often comes with significant financial commitments, encompassing tuition fees, textbooks, and daily living expenses.
To alleviate some of these financial challenges, the Australian Government offers the Student Start-Up Loan (SSL), providing eligible students with a $1,321 loan per period to assist with study-related costs.
Understanding The Student Start-Up Loan
The Student Start-Up Loan is a voluntary, interest-free loan designed to support students receiving certain Centrelink payments.
It aims to help cover essential educational expenses, including textbooks, laptops, and other study materials. The loan is available twice a year, allowing students to access up to $2,642 annually.
Eligibility Criteria
To qualify for the Student Start-Up Loan, applicants must meet the following criteria:
- Centrelink Payments: Must be receiving one of the following:
- Youth Allowance (for students and apprentices)
- Austudy (for full-time students aged 25 or older)
- ABSTUDY Living Allowance (for Aboriginal and Torres Strait Islander students)
- Enrollment Status: Must be enrolled in full-time study at an approved higher education institution.
- Course Requirements: Must be undertaking an approved scholarship course.
- Scholarship Restrictions: Must not be receiving a Commonwealth Education Costs Scholarship (CECS) for the same period.
- Tax File Number (TFN): Must provide a valid TFN, verified by the Australian Taxation Office (ATO).
It’s important to note that students receiving only supplementary payments like Rent Assistance or Pharmaceutical Allowance without the primary qualifying payments are not eligible for the SSL.
Loan Amount and Disbursement
The loan amount is fixed at $1,321 per loan period, with two loan periods each calendar year:
- 1 January to 30 June
- 1 July to 31 December
Upon approval, the full $1,321 is disbursed in one payment. For new courses, the loan is paid with the next regular student payment after the course start date.
For ongoing studies, payments are made with regular student payments from either 1 January or 1 July, depending on the loan period.
Application Process
Applying for the Student Start-Up Loan involves the following steps:
- Log into myGov Account: Access your myGov account linked to Centrelink. If you don’t have an account, create one and link it to Centrelink.
- Navigate to ‘Student Start-Up Loan’: Within your Centrelink account, go to ‘Payments and Claims’ and select ‘Apply for Student Start-Up Loan’.
- Verify Eligibility and Course Details: Ensure your study details and Centrelink payments are current. Complete the application form with accurate information about your course and financial needs.
- Submit Application: After reviewing your details, submit the application. Centrelink will process your request and notify you upon approval.
- Receive Funds: Once approved, the $1,321 loan amount will be deposited into your nominated bank account, typically within a few business days.
Repayment Terms
As the Student Start-Up Loan is a loan, repayment is required once your income exceeds the repayment threshold. Key aspects include:
- Repayment Threshold: For the 2024-25 financial year, repayments commence when your income exceeds $51,550.
- Repayment Method: Repayments are made through the tax system, similar to Higher Education Loan Program (HELP) debts.
- Indexation: The loan balance is indexed annually to reflect changes in the cost of living, with indexation applied once the loan is 11 months old, typically on 1 June each year.
- Voluntary Repayments: You can make additional voluntary repayments at any time to reduce your loan balance.
It’s essential to consider the long-term implications of taking the loan, as indexation can increase the amount to be repaid over time.
Key Dates
Applications for the Student Start-Up Loan are open during two periods each year.
- First Half: 1 January – 30 June
- Second Half: 1 July – 31 December
Ensure you apply within these timeframes to receive the loan for the corresponding period.
Summary Table
| Aspect | Details |
|---|---|
| Program Name | Student Start-Up Loan |
| Loan Amount | $1,321 per loan period |
| Eligibility | Full-time higher education students receiving Youth Allowance, Austudy, or ABSTUDY Living Allowance |
| Application Periods | 1 January – 30 June and 1 July – 31 December |
| Application Method | Through Centrelink via myGov account |
| Repayment Terms | Repayable through the tax system once income exceeds $51,550; indexed annually |
| Official Resource | Services Australia |
The Student Start-up Loan offers valuable financial support to eligible Australian students, helping to cover essential study-related expenses.
However, it’s important to remember that this is a loan, not a grant, and it must be repaid once your income exceeds the repayment threshold.
Before applying, consider your financial situation and future repayment obligations. For more detailed information and to apply, visit the official
FAQs
Is the Student Start-up Loan a grant or a loan?
It is a loan that must be repaid once your income exceeds the repayment threshold.
When do I start repaying the loan?
Repayments begin when your taxable income surpasses $51,550 for the 2024-25 financial year.
Can I apply for the Student Start-up Loan more than once?
Yes, eligible students can apply for the loan twice a year, receiving up to $2,642 annually.