The Australian Government’s Services Australia has announced that applications for the 2025 Student Start-up Loan (SSL) program are now open. This financial assistance program offers eligible Australian citizens the opportunity to receive payments biannually.
Qualified recipients who currently receive Youth Allowance, Austudy, or ABSTUDY Living Allowance may be eligible to borrow $1,321 in both January and June. Services Australia confirms this tax-free loan can assist with educational materials, transportation costs, and living expenses.
However, Services Australia emphasizes the importance of understanding the financial implications of accepting this loan.
The loan requires repayment of the principal amount plus indexation, which may accumulate significantly over time. This system operates similarly to HECS-HELP loans, which have presented repayment challenges for many Australians.
Repayment Structure:
Loan repayments commence once the recipient’s income exceeds the designated threshold, with deductions made directly from their salary. Annual indexation occurs on June 1, adjusting outstanding balances according to inflation rates.
Recent legislative changes have implemented a more favorable indexation calculation method, using the lower rate between the Consumer Price Index and the Wage Price Index. This resulted in reduced rates of 4 percent for 2024 and 3.2 percent for 2023, compared to previous rates of 4.7 percent and 7.1 percent in preceding years.
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Eligibility Requirements:
Applicants must:
- Be current recipients of specified Centrelink payments
- Submit applications during designated loan periods
- Apply at least 35 days before course completion
- Be enrolled in qualifying degree or diploma programs
- Attend approved institutions listed on the National Register of Higher Education Providers
The loan periods operate from January 1 to June 30 and July 1 to December 31. For new students, disbursement occurs with their next scheduled student payment following course commencement.
Services Australia advises potential applicants to carefully consider their long-term financial position and explore alternative options, including no-interest loan schemes for smaller expenses.
