The Centrelink Student Start-Up Loan is a financial support program designed to help full-time students in Australia manage their education-related expenses. In 2025, eligible students can access a loan of $1,321 per loan period to cover costs such as textbooks, technology, and other study materials. This loan is interest-free but must be repaid once the recipient’s income exceeds a certain threshold.
Eligibility Criteria
To qualify for the Student Start-Up Loan, students must be receiving a qualifying Centrelink payment, including Youth Allowance (for students aged 16–24), Austudy (for students aged 25 or older), or the ABSTUDY Living Allowance (for Indigenous students). Additionally, applicants must be enrolled full-time at an approved higher education institution and meet the residency requirements as an Australian citizen, eligible permanent resident, or qualifying New Zealand citizen.
Students who receive the Commonwealth Education Costs Scholarship or the Veterans’ Affairs Student Start-Up Scholarship are not eligible for this loan.
Loan Amount and Disbursement Periods
In 2025, students can receive up to $1,321 per loan period, with two loan periods available each year:
- First Period: 1 January – 30 June
- Second Period: 1 July – 31 December
This means students can access a total of $2,642 per year if they apply for both periods.
Application Process
Students can apply for the loan online via their Centrelink account on myGov. The application process involves confirming eligibility, submitting an application through the Centrelink portal, and monitoring the status of the request. Once approved, the loan amount is directly deposited into the applicant’s bank account. Applications can be submitted at any time during the loan period, but applying early ensures timely access to funds.
Repayment Process
The loan is repaid through the Australian Taxation Office (ATO) once the borrower’s income surpasses the mandatory repayment threshold, which is adjusted annually. Repayments are deducted automatically through the tax system. Although the loan does not accrue interest, it is indexed to inflation, meaning the amount owed may increase slightly each year. Borrowers also have the option to make voluntary repayments at any time.
Pros and Cons of the Student Start-Up Loan
The main advantage of the loan is that it is interest-free and only requires repayment when the recipient starts earning above a certain income level. Additionally, it provides crucial financial support without affecting eligibility for other Centrelink payments. However, students should be mindful that it is still a loan that must be repaid and is subject to indexation, which can increase the total amount owed over time.
Final Thoughts
The Centrelink Student Start-Up Loan for 2025 offers valuable financial assistance to eligible students, helping them manage study-related costs without immediate financial burden. Understanding the eligibility requirements, application process, and repayment terms is essential for making an informed decision about whether this loan is the right choice for your educational journey.