Australian students relying on Centrelink payments now have access to a financial boost—the Student Start-up Loan (SSL), offering up to $1,321 twice a year.
This loan is designed to help cover study-related costs such as textbooks, travel, and rent.
But before you apply, it’s important to understand the eligibility criteria, repayment terms, and potential downsides. Let’s break it down so you can make an informed decision.
Eligibility
Not every student qualifies for the SSL. To be eligible, you must meet the following requirements:
| Requirement | Details |
|---|---|
| Receiving Centrelink Payments | Must be on Youth Allowance, Austudy, or ABSTUDY Living Allowance. |
| Enrolled in an Eligible Course | Must be studying a degree, diploma, or a preparatory course. Vocational courses are not eligible. |
| Registered Institution | The course must be offered by a provider listed on the National Register of Higher Education Providers. |
| Timely Application | Applications must be submitted between January 1 – June 30 or July 1 – December 31, and at least 35 days before your course ends. |
If you’re starting a new course, the SSL payment will be included in your first student allowance payment after the course begins.
Loan Amounts
The SSL provides students with up to $1,321 per semester—that’s a total of $2,642 per year if you apply for both payments.
| Payment Period | Amount |
|---|---|
| January – June | Up to $1,321 |
| July – December | Up to $1,321 |
This money can be used for study-related costs, including:
- Textbooks & Supplies – Essential academic materials.
- Transport & Travel – Bus fares, fuel, or public transport passes.
- Rent & Living Expenses – Accommodation and basic living costs.
However, this is a loan, not a grant, meaning you’ll need to pay it back.
Repayments
When Do You Start Repaying?
Repayment begins once your income exceeds the repayment threshold, similar to HECS-HELP loans. The government automatically deducts a portion of your salary when you earn above this limit.
Indexation – What You Should Know
The SSL is indexed annually, meaning the amount you owe increases with inflation. This could make your loan more expensive over time.
Here’s how indexation has affected student loans in recent years:
| Year | Indexation Rate |
|---|---|
| 2022 | 4.7% |
| 2023 | 7.1% |
| 2024 | 4.0% (due to government policy changes) |
This means if you borrowed $2,642, by the time you start repaying, the amount could grow due to these indexation rates.
Impact of Indexation
If inflation rises, indexation rates could also increase, making it harder to pay off the debt quickly.
While this is an interest-free loan, indexation acts like inflation-based interest, so you could end up repaying more than you expected.
Alternatives
Before applying for the SSL, consider other financial options:
- No-Interest Loans (NILs) – Some organizations offer small, interest-free loans for essentials like textbooks or laptops.
- University Grants & Scholarships – Many institutions offer financial aid that doesn’t require repayment.
- Casual Work or Side Jobs – Even part-time work can help cover expenses without accumulating debt.
If you don’t urgently need the extra cash, avoiding a loan might be the better financial decision.
Is It Worth It?
The Student Start-up Loan can be a lifeline for students struggling with costs, but it’s important to remember:
It provides quick financial relief.
No interest is charged, only indexation.
It increases your student debt.
Indexation can make repayments higher over time.
If you absolutely need the money and can manage repayments later, the SSL can be useful. But if you have other financial options, it might be better to avoid taking on extra debt.
How to Apply
If you decide the SSL is right for you, apply through your Centrelink online account via myGov. Be sure to submit your application within the correct time frame to avoid missing out.
By understanding both the benefits and drawbacks, you can make the best financial decision for your future.
