Voluntary Since 1 January 2016
Student Start-up Loans (SSL & ABSTUDY SSL)
A loan you choose to take if you are on Youth Allowance, Austudy or ABSTUDY Living Allowance while studying in higher education. It replaced the Student Start-up Scholarship in 2016 — and unlike a scholarship, it has to be paid back.
The one thing to get right
A Student Start-up Loan is voluntary — a HELP loan is not.
A HELP loan is attached to your enrolment; if you are eligible it happens automatically. An SSL is a separate decision. It is a debt collected through the tax system, so take it only if you need it.
- Eligibility is tied to your income support payment — you must be receiving Youth Allowance, Austudy or ABSTUDY Living Allowance, and studying in higher education.
- It is a loan, not a scholarship. The Student Start-up Scholarship it replaced did not have to be repaid. This does.
- Services Australia pays it; the ATO collects it. Two different agencies, one debt.
- There are two versions — Student Start-up Loan and ABSTUDY Student Start-up Loan, both started on 1 January 2016.
How it is repaid
From the 2025–26 income year you only make a compulsory repayment once your repayment income exceeds the minimum threshold — $69,528 for 2026–27 — and the repayment is calculated only on the portion of your income above it.
Once you are working, you tell your employer about the loan on your tax file number declaration or withholding declaration, and they withhold the extra amount along with your tax. The withholding is only applied to the balance after you lodge your return and the compulsory repayment is calculated.
Because this loan is taken while you are on a low income and repaid later when you are earning more, the practical question is not "can I get it" but "do I need it now, at the cost of a debt plus indexation". Indexation is applied to the balance each year — see how indexation works.
Frequently asked questions
What is a Student Start-up Loan?
A voluntary loan for eligible higher education students who receive Youth Allowance, Austudy or ABSTUDY Living Allowance. It started on 1 January 2016 and replaced the Student Start-up Scholarship payment.
Is it voluntary?
Yes — that is the main thing to understand about it. Unlike a HELP loan, which is attached to your enrolment, an SSL is something you choose to take. If you do not need it, do not take it: it is a debt that will be collected through the tax system once you are earning above the repayment threshold.
Who administers it?
Services Australia administers the payments, because eligibility is tied to the income support payment you receive. The debt is then collected by the ATO through the tax system, the same way as HELP.
Does it affect my Youth Allowance or Austudy?
It is a loan, not income support, so it is not a payment that replaces or tops up the rate of Youth Allowance or Austudy. You need to be receiving one of those payments, or ABSTUDY Living Allowance, to be eligible in the first place.
How much do I repay?
From the 2025–26 income year you only make a compulsory repayment once your repayment income exceeds the minimum threshold — $69,528 for 2026–27 — and the repayment is calculated only on the portion of your income above it. The same scale applies to study and training support loan debts, which is what the repayment calculator works from. Your loan balance is a separate factor — it does not affect the compulsory repayment.
Is an SSL the same as ABSTUDY SSL?
They are two related schemes: Student Start-up Loan and ABSTUDY Student Start-up Loan. Both started on 1 January 2016 and both are for higher education students on income support — the ABSTUDY version is for Aboriginal and Torres Strait Islander students receiving ABSTUDY Living Allowance.
Related
- All study & training loan schemes
- Repayment thresholds 2026–27
- Voluntary repayments — paying the debt down faster
Scheme rules from Australian Taxation Office, checked 12 October 2026.