Managing finances as a student in Australia can be challenging, especially with the rising costs of tuition, textbooks, and living expenses.
To ease this burden, the Student Start-Up Loan from Centrelink provides $1,321 per loan period, offering students an interest-free financial boost. Available twice a year, this loan helps cover essential study-related costs.
This guide will explain everything you need to know about the Student Start-Up Loan, including eligibility, the application process, repayment details, and how to make the most of this financial assistance.
Student
The Student Start-Up Loan is a voluntary, interest-free loan designed for students receiving government financial support.
It provides $1,321 per loan period, meaning eligible students can receive up to $2,642 per year to assist with educational expenses.
Unlike traditional student loans, this loan is only repayable once your income exceeds a specific threshold, making it a low-risk financial aid option for students in need.
Eligibility
To qualify for the Student Start-Up Loan in 2025, you must meet the following criteria:
1. Full-Time Student Status
- You must be enrolled full-time in an approved higher education course at a recognized institution.
2. Receiving Government Allowances
- You must be receiving one of the following:
- Youth Allowance (for students under 24).
- Austudy (for students 25 and older).
- ABSTUDY Living Allowance (for Indigenous students).
3. Course Approval
- Your course must be recognized by Centrelink as an eligible diploma, degree, or advanced diploma program.
4. Not Receiving a Relocation Scholarship
- If you are already receiving a Relocation Scholarship, you cannot apply for the Student Start-Up Loan.
Payment
The Student Start-Up Loan provides $1,321 per loan period, available twice a year.
Payment Breakdown
| Loan Period | Loan Amount |
|---|---|
| January – June | $1,321 |
| July – December | $1,321 |
| Total Per Year | $2,642 |
This loan can be used to cover a wide range of study-related expenses, including:
- Textbooks and materials
- Technology (laptops, software, etc.)
- Transport and travel costs
- Rent and living expenses
Apply
Applying for the Student Start-Up Loan is simple and can be done entirely online through myGov.
Step-by-Step Application Process
1. Log in to myGov
- Visit my.gov.au and sign in.
- If you don’t have an account, create one.
2. Link Your Centrelink Account
- Ensure your Centrelink account is linked to myGov.
- If you are receiving Youth Allowance, Austudy, or ABSTUDY, this should already be set up.
3. Navigate to Payments and Claims
- In the Centrelink section, go to “Payments and Claims”.
4. Apply for the Student Start-Up Loan
- Select “Apply for the Student Start-Up Loan” and follow the prompts.
5. Submit Your Application
- Complete the form with all required details and submit it for processing.
6. Wait for Approval
- Centrelink will review your application and notify you once it is processed.
Repayment
The Student Start-Up Loan is interest-free, but you must repay it once your income exceeds a set threshold.
How Loan Repayment Works
- Payments are made through the Australian Taxation Office (ATO) once your income reaches the required amount.
- The repayment threshold is updated each year—visit the ATO website for the latest figures.
- If your income stays below the threshold, you won’t have to repay the loan.
Voluntary Repayments
- You can make voluntary repayments at any time to reduce your debt faster.
The Student Start-Up Loan is a fantastic financial aid option for eligible students, offering interest-free support to help cover study expenses.
Whether you need funds for textbooks, rent, or transport, this loan ensures that financial struggles don’t get in the way of your education.
If you meet the eligibility criteria, applying is simple and can provide the extra boost you need to focus on your studies without added financial stress.
