Centrelink Announces $1,321 Cash Grant for Thousands – Here’s How You Can Benefit

Good news for Australian students! Centrelink has launched the application for the 2025 Student Start-up Loan (SSL). This loan offers students government assistance with finance to cover study and living costs. But is it suitable for you? Let’s look a bit closer at this scheme.

What is Student Start-up Loan (SSL)?\

SSL is a one-off loan provided to students who are getting Youth Allowance, Austudy or ABSTUDY Living Allowance. It is a tax-free loan and can be accessed twice a year (January and June).

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Eligibility Requirements

The following criteria need to be fulfilled in order to access SSL:

• Receiving Centrelink payments – You should be getting Youth Allowance, Austudy, or ABSTUDY Living Allowance.
• Course enrollment in an approved course – The course should be connected with a degree, diploma or associated preparation program. Courses under vocational education are excluded for this scheme.
• Application on time – Applications should be submitted between January 1 and June 30 or July 1 and December 31. The application has to be submitted at least 35 days prior to the course finish date.
• Payment of loan with first scholarship for new course – You will be paid this scheme amount along with your first scholarship when you join a new course.

Loan Amounts and Payment Procedure

This scheme offers support twice a year:

• $1,321 in January
• $1,321 in June

Students can avail this money to spend on books, travel cost, rent, or other personal needs. It is a temporary relief, yet one should always remember the terms of repayment.

Repayment of loan

Repayment of SSL is compulsory and is an indexed loan. In other words, you are to repay more than the initial amount of the loan.

How and when to repay?

• When your salary is above a certain threshold, deductions are automatically taken from your pay.
• If you cannot repay the loan quickly enough, it continues to rise based on inflation.
• Indexation is applied to the balance of the loan on 1 June each year, which can make your overall loan bigger.

What is indexation?

SSL loan rises annually similar to HECS-HELP loan. The growth rate over the last few years has been as follows:

• 2022: 4.7%
• 2023: 7.1%
• 2024: 4% (The government has decided to lower it on the basis of the Consumer Price Index or Wage Price Index)

This explains that if you cannot pay in a hurry, your debt can grow in a hurry.

Are there other alternatives?

If you are considering taking SSL, think of alternatives first:

• No-Interest Loans – This can be a good choice for minor expenses.
• Other government financial assistance schemes – indexation does not apply.
• Part-time job – If you can, you can cover your expenses by working a few hours.

Is taking SSL the correct choice?

SSL can be an option for students who require instant financial help. But this is not free money, but a loan that must be returned.

Before you apply, think about these things:

• Will you be able to pay it back soon?
• Are there other choices for you?
• Will you have to pay higher interest rates in the future?

How to apply?

If you have made up your mind that SSL is the best choice for you, remember the following:

• Fulfill the eligibility criteria.
• Apply within the given time frame.
• Evaluate your future financial position.

Conclusion

Centrelink’s $1,321 SSL loan is an accessible option for students, yet a loan which will be of a burden financially in the long run. We need to consider all the terms and risks associated before we actually apply. In case you want to take it, use it prudently and pay back as early as possible.

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