The 2025 Student Start-up Loan (SSL) is now open for applications, offering Australian students up to $1,321 twice a year to help cover essential study and living expenses.
If you’re receiving Centrelink support like Youth Allowance, Austudy, or ABSTUDY, this tax-free loan might seem like a great way to manage your finances.
However, since repayment is required, it’s important to understand the benefits, drawbacks, and alternatives before applying.
Who Is Eligible?
Not all students qualify for the SSL. To be eligible, you must:
- Receive Centrelink payments – You must be on Youth Allowance, Austudy, or ABSTUDY Living Allowance.
- Be enrolled in an eligible course – Your course must lead to a degree or diploma or be a preparatory course for one. Vocational education or training (VET) courses do not qualify.
- Attend an approved institution – The institution must be listed on the National Register of Higher Education Providers.
- Apply on time – Applications must be submitted within the loan periods:
- January 1 – June 30
- July 1 – December 31
- Applications must be at least 35 days before your course ends.
If you’re starting a new course, the SSL payment will be included with your first Centrelink student payment.
How Much Can You Get?
The SSL provides up to $1,321 per loan period, meaning eligible students can receive up to $2,642 per year.
| Loan Period | Amount |
|---|---|
| January – June | $1,321 |
| July – December | $1,321 |
| Total (Annual) | $2,642 |
This money can be used for textbooks, travel, rent, or other study-related expenses.
Repayment Terms
While the SSL offers immediate financial relief, it must be repaid, and it is subject to indexation (inflation adjustments).
- Repayment begins when your income exceeds the repayment threshold (similar to HECS-HELP loans).
- A percentage of your wages will be automatically deducted once you reach this threshold.
- Any outstanding amount as of June 1 each year will be adjusted for inflation, increasing your total debt.
Indexation Rates in Recent Years
| Year | Indexation Rate |
|---|---|
| 2022 | 4.7% |
| 2023 | 7.1% |
| 2024 | 4% (due to a government adjustment) |
This means that if your loan remains unpaid, the total debt increases each year, making it harder to repay over time.
Alternatives to the SSL
Before applying for the SSL, consider other financial aid options that don’t come with indexation or repayment obligations:
- No-Interest Loans (NILS) – Available for smaller expenses without interest.
- Scholarships & Grants – Many universities and organizations offer non-repayable financial aid.
- Casual or Part-Time Work – A flexible job may help cover study costs without accumulating debt.
Is the SSL Worth It?
The Student Start-up Loan can be a lifeline for students struggling with costs, but it’s not free money. Since repayments are required, and the loan is indexed annually, it’s important to:
- Calculate how much you really need before applying.
- Consider alternatives like grants, no-interest loans, or part-time work.
- Plan for repayments to avoid long-term financial strain.
If you’re confident it’s the right financial decision, apply within the deadlines to secure your payment.
For more information, visit the Centrelink SSL official website.
