The 2025 Student Start-up Loan (SSL) application window is now open, offering Australian students a way to cover study and living expenses. If you’re relying on government assistance like Youth Allowance or Austudy, this tax-free loan might seem like a helpful option. But before signing up, let’s look into the details to ensure you understand both the benefits and the potential drawbacks.
Eligibility
Not everyone qualifies for the SSL, so you’ll need to meet specific requirements:
- Receiving Centrelink payments: You must be on Youth Allowance, Austudy, or ABSTUDY Living Allowance.
- Enrolled in an eligible course: The course must lead to a degree or diploma, or be a preparatory course for one. Vocational education or training courses don’t qualify, and the institution must be listed on the National Register of Higher Education Providers.
- Timely application: Applications must be made within the loan periods—January 1 to June 30 and July 1 to December 31—and at least 35 days before your course ends.
For new courses, the SSL payment will be included with your first student payment after the course begins.
Loan Amounts
The SSL provides up to $1,321 twice a year, in January and June. This money can be used for essential costs like textbooks, travel, or even rent. However, while this may offer short-term financial relief, it’s important to know how repayment works to avoid long-term challenges.
Repayments
Here’s the catch: the SSL must be repaid, and it comes with indexation. This means you’ll pay back more than you borrowed over time. Repayment begins once your income exceeds a certain threshold, with a percentage of your wages automatically deducted to cover the loan.
Even more concerning, any outstanding amount as of June 1 each year will be adjusted for inflation. This adjustment can increase your debt if your repayments haven’t kept up, making it harder to pay off in the long run.
Indexation Explained
The SSL, like HECS-HELP loans, is indexed annually. Here’s a snapshot of recent rates:
- 2022: 4.7%
- 2023: 7.1%
- 2024: 4% (thanks to a government change tying indexation to the lower of the consumer price index or wage price index)
These rates highlight how debt can grow quickly if not managed carefully.
Alternatives
Before committing to an SSL, think about other funding options. Services Australia suggests investigating no-interest loans for smaller expenses or other financial support programs that won’t accrue indexation.
The SSL can provide immediate help, but it’s essential to consider how it might affect your finances in the long term.
Is It Worth It?
The SSL is a useful tool for students who need a financial boost. However, it’s not free money—it’s a loan that comes with obligations. Carefully weigh your options, consider how the repayments and indexation will affect you, and look into alternatives before deciding if the SSL is the best choice for your situation.
If you’re confident it’s the right move, be sure to meet the eligibility criteria and apply within the specified periods to avoid missing out.
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FAQs
How much can I borrow with the SSL?
You can borrow up to $1,321 twice a year in January and June.
Do I need to repay the SSL?
Yes, you’ll repay it with indexation when earning above a set threshold.
Can I apply for the SSL if I’m not on Centrelink?
No, you must receive Youth Allowance, Austudy, or ABSTUDY.
When is the application deadline for the SSL?
Apply at least 35 days before your course ends within the loan period.
What courses are eligible for the SSL?
Only degree, diploma, or preparatory courses at approved institutions qualify.
