Study Loan Centrelink: Guide to the Student Start-up Loan (Australia)

Are you worried about how to pay for your studies in Australia?
Maybe your tuition fees are covered by HECS-HELP or FEE-HELP, but you still have many other costs. You may need money for textbooks, laptop, rent, food, internet, or travel.

For many students, managing all these expenses is stressful. That is where the study loan Centrelink called the Student Start-up Loan can help.

In this blog, we will explain:

What the Centrelink Student Start-up Loan is
Who can get it
How much you can borrow
How repayment works
Simple examples and calculations
Tips to use this loan wisely

Our goal is to help you understand this study loan from Centrelink in very simple language so you can make a smart decision.

What is the Centrelink Student Start-up Loan?

The Student Start-up Loan is a voluntary loan from Centrelink for eligible higher education students. It is designed to help you pay for your study-related and basic living costs.

Important points:

It is a loan, not a scholarship.
You will need to repay it in the future through the tax system.
You can usually get it up to two times a year (once each study period).
The loan amount is set by the Australian Government and can change over time.
To get this loan, you must already be receiving a student payment from Centrelink, such as:
- Youth Allowance (Student)
- Austudy
- ABSTUDY Living Allowance

This loan gives you extra money at the beginning of a study period so you can buy what you need to continue your education smoothly.

How much can you get from this study loan Centrelink?

The exact amount of the Student Start-up Loan changes with indexation and government rules. It is usually a fixed amount per study period, and you can receive it twice a year if you are eligible both times.

To make it easy to understand, let’s use a simple example with rounded figures (remember: always check the current amount on the official Services Australia website).

Example amount (for understanding only)

Assume you can get $1,300 per payment
You can receive this loan two times a year

So, in one year you may receive:

$1,300 × 2 = $2,600 per year

If you take this loan every eligible study period during a 3-year degree, then:

$2,600 per year × 3 years = $7,800 total Student Start-up Loan debt

This Student Start-up Loan is separate from your tuition loans (like HECS-HELP or FEE-HELP), but it is repaid in a similar way through the tax system.

What can you use the Student Start-up Loan for?

When Centrelink approves your Student Start-up Loan, the money is usually paid directly into your bank account. You can then use it for your study-related and living expenses, such as:

Textbooks, e-books and course readers
Laptop, tablet, software and other study tools
Internet and phone bills
Public transport or fuel costs
Rent and bond
Groceries and other basic needs

Centrelink does not ask for receipts for each item, but remember:

This is loan money, not free money.
You will repay it later, so try to use it wisely.

Who is eligible for this Centrelink study loan?

Not every student in Australia can get the Student Start-up Loan. You must meet some conditions.

In general, you may be eligible if:

You are a higher education student
- You are enrolled in an approved higher education course (like a bachelor’s degree or some diplomas).
- Your education provider (university/college) must be approved.
You are studying full-time
- Usually, you need to be a full-time student.
- Some students with special circumstances may get it on a reduced study load, but this is case-by-case.
You receive a Centrelink student payment
You must be getting at least one of these:
- Youth Allowance (Student)
- Austudy
- ABSTUDY Living Allowance
Your course is approved for student payments
- Your course must be recognised as an approved higher education course.
You are not on the old Student Start-up Scholarship
- Some older students may still be getting the old scholarship. If so, they usually cannot get the new Student Start-up Loan at the same time.

Quick self-check

You probably can consider applying if:

You are studying full-time at uni or higher-ed level
You already get Youth Allowance, Austudy or ABSTUDY Living Allowance
Your course is recognised and approved
You are comfortable with taking a HELP-style loan

If you are unsure, you can always check your eligibility on the Services Australia website or talk to a Centrelink officer.

How do repayments work for the Student Start-up Loan?

The Student Start-up Loan works in a similar way to HELP debts like HECS-HELP:

You do not repay while your income is below a certain amount (the repayment threshold).
When your income goes above that threshold, you start repaying a percentage of your income through the tax system.
The loan is indexed each year to keep up with inflation (like other HELP debts).
You do not make separate repayments for each loan.
- Instead, your HECS-HELP, FEE-HELP and Student Start-up Loan are treated together as your combined education debt.

Simple repayment example

Let’s use an example with easy numbers (note: these are for explanation only):

Repayment threshold: $54,000 per year
Your income this year: $60,000
Repayment rate at this income: 2%

Your annual compulsory repayment will be:

2% of $60,000 = 0.02 × 60,000 = $1,200

This $1,200 is taken through your tax return and goes towards your overall education loan, which includes:

HECS-HELP or FEE-HELP, and
Student Start-up Loan

You don’t need to manage separate bills for each loan. The Australian Taxation Office (ATO) handles how the money is divided.

How to apply for the Centrelink Student Start-up Loan

The process is mostly online and quite simple if you already have a myGov account linked to Centrelink.

If you already receive a student payment (Youth Allowance, Austudy, ABSTUDY)

Log in to myGov and go to your Centrelink account.
Open the menu and select “Payments and Claims” or similar.
Look for an option like “Apply for/Manage Student Start-up Loan”.
Read the information carefully, answer the questions, and submit your request.

If you are eligible, you should see the option to apply.
If the option is not visible, it might mean you are not eligible at the moment (for example, because of your course type or study load).

If you are applying for Youth Allowance, Austudy or ABSTUDY for the first time

When you first submit your claim for a student payment, there may be a question asking if you want to take up the Student Start-up Loan as well.

You can:

Say “Yes” if you want to receive the loan (and if you are eligible).
Say “No” if you prefer not to take on the extra debt at this stage.

Remember:
The Student Start-up Loan is voluntary. You can choose to take it or not each study period.

How much debt could you have at graduation?

Let’s combine everything into one simple, realistic example.

Example scenario

Student Start-up Loan per payment: $1,300
Payments per year: 2
Degree duration: 3 years

Student Start-up Loan over 3 years:

Per year:
- $1,300 × 2 = $2,600
Over 3 years:
- $2,600 × 3 = $7,800 total Student Start-up Loan

Now, let’s assume your HECS-HELP debt for tuition is:

$12,000 per year for 3 years

HECS-HELP total:

$12,000 × 3 = $36,000

Now add the Student Start-up Loan:

HECS-HELP: $36,000
Student Start-up Loan: $7,800

Total education debt at graduation:

$36,000 + $7,800 = $43,800

This number may look large, but remember:

You only repay once your income is above the threshold.
Repayments are a small percentage of your income at first.
Without this support, some students might struggle to stay in education at all.

Pros and cons of the Centrelink study loan

Like any loan, the Student Start-up Loan has both advantages and disadvantages.

Benefits

Helps you start each study period strongly
You can pay for textbooks, a laptop, or move into a new rental when the semester starts. This reduces stress.
No repayments while you earn less than the threshold
If you are earning a low income, you won’t have to make compulsory repayments.
Tax-free
The loan amount is not counted as taxable income, so it doesn’t increase your tax bill directly.
Works with existing Centrelink payments
It adds to Youth Allowance, Austudy or ABSTUDY, giving you more support during your studies.

Drawbacks

It increases your total debt
You will owe more when you graduate, which may take more time to repay.
Indexed each year
Like HELP debts, the loan is indexed, so the amount can grow if you repay slowly.
Not necessary for everyone
If you can manage your living and study costs without it, you may prefer not to take on extra debt.

Tips to use the Student Start-up Loan wisely

If you decide to take this study loan from Centrelink, try to use it in a smart way.

Make a small budget
- Write down all your income: Centrelink, part-time job, family support (if any).
- List all your essential expenses: rent, food, transport, phone, textbooks.
- Decide how much of the loan will go to each category.
Focus on needs, not wants
Use the loan for important costs that help you continue your course, not for luxury items or unnecessary spending.
Consider taking it only some semesters
Because the loan is voluntary, you can skip it in periods when you don’t need extra money.
Think long term
Ask yourself: “Will this loan help me complete my education and improve my future income?” If the answer is yes, the loan might be a good tool for you.

Conclusion: Is the Centrelink study loan right for you?

The Centrelink Student Start-up Loan is a useful option for many Australian students who struggle with study and living costs. It can give you:

Extra money when the semester starts
Flexible use for real-life expenses
A repayment system based on your income, not fixed monthly bills

However, it is still debt, and it adds to your total education loan.

Before deciding, think about:

Your current financial situation
Your expected future income after graduation
Whether you really need the extra funds

If you are still unsure, you can:

Check the latest rules and amounts on the Services Australia website
Talk to your university’s student financial adviser
Ask Centrelink directly for personalised information