Centrelink’s $1,321 Payout for Students Shocks Aussies: Many Australians were surprised to discover that Centrelink offers a $1,321 payout for eligible students not just once, but twice a year. This financial boost, officially known as the Student Start-up Loan (SSL), is part of a broader initiative by the government to ease the burden of education expenses for students receiving government support. With the ever-increasing costs of textbooks, tech tools, travel, and basic living expenses, the SSL can provide meaningful relief — yet many students are unaware of it or unsure about how to claim it.
Whether you’re a university student juggling tuition and part-time work, a parent supporting a child through higher education, or a professional looking to retrain through study, understanding how the Student Start-up Loan works is essential. In this comprehensive guide, we’ll break down everything you need to know: who qualifies, how much you can get, how to apply, and whether it’s the right move for your situation.
Centrelink’s $1,321 Payout for Students Shocks Aussies
| Feature | Details |
|---|---|
| Loan Name | Student Start-up Loan (SSL) |
| Amount | $1,321 per loan period (up to $2,642 per year) |
| Eligibility | Students receiving Youth Allowance, Austudy, or ABSTUDY (Living Allowance) |
| Frequency | Two payments per year (Jan-June, July-Dec) |
| Repayment | Loan, repayable through the HELP system once income exceeds the threshold |
| Application | Through Centrelink via myGov |
The Centrelink $1,321 Student Start-up Loan is a powerful tool that provides vital financial relief to eligible students. While it’s not free money, its deferred repayment structure and inflation-only indexation make it one of the most accessible and supportive student finance options available in Australia.
If you are studying full-time and receive Youth Allowance, Austudy, or ABSTUDY, applying for the SSL could help you cover education-related expenses, reduce stress, and stay focused on your studies. Remember to mark your calendar for each loan period and double-check your Centrelink and myGov accounts for notifications.
What Is the Student Start-up Loan?
The Student Start-up Loan (SSL) is a voluntary, interest-free loan indexed to inflation, available to students in higher education who receive certain Centrelink payments. As of 2024, eligible students can receive $1,321 twice a year — once in the January to June period and again between July and December. That means a total of $2,642 per year.
This money is meant to help cover essential education-related expenses such as:
- Textbooks and academic supplies
- Laptops and software
- Study-related travel costs
- Home internet and utilities
- General living costs associated with studying full-time
It is not a grant, which means it needs to be paid back eventually, but it functions similarly to other HELP loans. You won’t need to pay a cent until your income exceeds a certain level, and there’s no interest — just indexation.
According to Services Australia, over 400,000 students accessed the SSL in 2023, demonstrating the critical role it plays in supporting students nationwide.
Who Is Eligible for the SSL?
To be eligible for the Student Start-up Loan, you must meet the following criteria:
- Be receiving one of these Centrelink student payments:
- Youth Allowance (Student)
- Austudy
- ABSTUDY Living Allowance
- Be enrolled in an approved full-time higher education course
- Attend a recognised higher education provider such as a university or accredited institution
- Not be enrolled solely in Vocational Education and Training (VET) courses unless they meet specific criteria
You must also be studying full-time, though exceptions may apply if you have a registered reason for a reduced study load, such as a disability or caring responsibilities.
Example:
Sarah is a full-time university student studying teaching. She receives Youth Allowance (Student) and is attending an approved public university. Sarah qualifies for the SSL and can apply in January and again in July, receiving a total of $2,642 annually to help her with books, transport, and a new laptop.
How and When Is It Paid?
The SSL is available in two separate payment periods:
- 1 January to 30 June
- 1 July to 31 December
You need to manually request the SSL through your myGov account during each loan period. Once Centrelink confirms your eligibility and enrolment status, the loan is usually paid directly into your bank account within a few business days.
It’s worth noting that you must request it each period — the loan does not roll over automatically. If you forget to apply, you won’t receive the payment for that term.
Do I Have to Repay the Loan?
Yes, the SSL is a loan, and like other forms of HELP assistance, it must be repaid through the tax system once you earn above the repayment threshold.
For the 2024-25 financial year, the repayment threshold is $51,550 (source). That means if you earn below that amount, you won’t make any repayments yet. Once your income crosses that threshold, repayments are automatically deducted from your salary via the Australian Taxation Office.
The loan is indexed annually according to the Consumer Price Index (CPI). While there’s no interest charged, this indexation can still increase your total balance over time.
Should You Take the SSL? Pros and Cons
Taking on a loan, even a government one, is a personal decision. Here’s a breakdown to help you weigh the pros and cons:
Pros:
- Immediate financial support when you need it most
- No interest, just CPI indexation
- No repayments required upfront
- Helps reduce stress and financial pressure during study
- Easy to request online through your existing Centrelink setup
Cons:
- It’s a debt that adds to your overall HELP balance
- CPI indexation may increase your total owed over time
- Requires action every six months to request the loan
- Could impact your future borrowing capacity depending on financial institutions
For many students, especially those from low-income backgrounds or with few other options, the SSL is a lifeline that provides flexibility and peace of mind during their studies.
Apply for the Student Start-up Loan
- Link Centrelink to myGov: If you haven’t done this already, go to myGov, create an account, and link your Centrelink profile.
- Confirm You Are Eligible: Make sure you’re receiving Youth Allowance, Austudy, or ABSTUDY and are studying full-time in an approved higher education course.
- Log In and Request the Loan: During the loan period, log into myGov, go to the “Payments and Claims” section, and choose “Student Start-up Loan” to submit your request.
- Update Your Details: Ensure your banking and contact details are accurate in your Centrelink profile. Incorrect details can delay your payment.
- Verify Your Enrolment: Your university or education provider will usually send confirmation directly to Centrelink. In some cases, you may need to upload or confirm documentation manually.
- Receive the Payment: Once approved, the payment will be processed within a few business days and deposited into your nominated bank account.
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FAQs On Centrelink’s $1,321 Payout for Students Shocks Aussies
Can I get the SSL if I study part-time?
Generally, no. The SSL is only for full-time students. However, exceptions can be made for students with approved reasons for reduced study loads, such as a medical condition or caring responsibilities.
What types of courses qualify?
Only higher education courses approved by Centrelink are eligible. Most university degrees qualify, while many TAFE and VET courses do not.
Do I need to reapply every 6 months?
Yes. Each loan period requires a new request. If you forget to apply during the designated window, you will miss that payment.
Will the SSL reduce my other Centrelink payments?
No. The SSL is considered separate from your ongoing payments and does not impact your Youth Allowance, Austudy, or ABSTUDY amounts.
Can I use the SSL for things like rent or groceries?
Yes. Although the loan is intended for study-related expenses, Centrelink does not audit how you spend it. Many students use the funds for general living costs.
