The Student Start-up Loan (SSL) for 2025 is open for application, and Australian students can use it to support their study and living costs. If you depend on government benefits, such as Youth Allowance or Austudy, this loan may appeal to you because it is free of taxes. However, before applying, there are some details you need to know to see both the positive and negative aspects of it.
Eligibility
Not everyone is eligible for the SSL, so you need to meet specific requirements: >
- You are receiving Centrelink payments. You are receiving Youth Allowance, Austudy, or ABSTUDY Living Allowance.
- You are enrolled in an eligible course. The course needs to lead to a degree or diploma, or be a preparatory course for one. You are not enrolled in a course of vocational education or training. The institution at which you are enrolled needs to be on the National Register of Higher Education Providers.
- On-time application: Applications should be submitted within the loan periods, that is, between January 1 and 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 starts.

Loan Amounts
It provides an amount of up to $1,321 twice a year, in January and June. This money can be used for any essential costs such as textbooks, travel, or even rent. While this may bring immediate relief to the pocket, it is important to understand repayment to not be harnessed towards bringing short-term solutions. >
Repayments
The catch: the SSL has to be repaid, and it comes with indexation. This means you will 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. >
Also more unsettling, any unpaid amount at June 1 each year will be indexed for inflation. Indexed for inflation means your debt may rise even if repayments haven’t kept up, while trying to pay off the debt is going to take longer to do.
Indexation Explained
The SSL, like HECS-HELP, is indexed each year. Here is a brief look at recent rates. >
- 2022: 4.7%
- 2023: 7.1%
- 2024: 4% (due to a government shift to indexation being pegged to the lower of consumer price index or wage price index)
These interest rates demonstrate how debt can compound rapidly unless controlled.

Options
Consider other sources of funding prior to entering an SSL. Services Australia recommends researching no-interest loans for small purchases or other forms of financial assistance that are not indexed.
The SSL can be of real support in the short run, though much needs to be considered about the long-term implications on the pocket.
Worth It?
The SSL is a useful tool for students who need a financial boost. However, it is not free money-it is a loan that comes with obligations. Weigh your options carefully, 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.
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.