Centrelink Student Loan

If you’re an Australian student who needs some funding, you’ll be able to take out a loan or living allowance that tides you over when it comes to handling your finances. 

Keep on reading to learn how you can benefit from being a higher education student with a Centrelink student loan.

What Is a Centrelink Student Loan?

centrelink student start up loan

Our findings show that, in Australia, the government helps students, trainees, and apprentices with their finances to cover everyday living costs and the expenses of studying. It could be 1 out of 4 options, divided into the following: The Youth Allowance for students and apprentices, Austudy, Abstudy, or Assistance for Isolated Children. 

These are all for students, but they vary, with some being for students younger than 24 and others being for older than 25. Some are also granted for parents or those who care for children and can’t attend school without financial help for any reason, be it a disability or geographical isolation. Also, there’s a type of loan that’s specific to start-ups.

What Are Student Start-up Loans?


start up loan centrelink

After conducting experiments with it, a student start-up loan is an optional loan that you can borrow twice a year if you’re a higher education student who’s eligible for loans on centrelink no credit check. It amounts to $1,094 for eligible students that already receive Abstudy living allowance, Austudy, or Youth Allowance.

You get two loan periods without them overlapping. Moreover, you don’t need to declare the centrelink car loan as income for a regular student payment as a student loan is tax-free.

However, you should bear in mind that once you start making a set amount of money to receive from business loans, you’ll be asked to pay back the loan. So, think about your finances in the long-run and how this loan might affect you before you make the decision to apply and take out the loan.

Who Is Eligible And Who Isn’t?

student loan centrelink

If you want to get a student start-up loan, you’ll have to meet the following requirements:

  • Getting a minimum of $1 from any of the student allowances, including Youth Allowance, Abstudy, Austudy, or Living Allowance
  • Providing your Tax File Number
  • Meeting the rules of studying
  • Applying at least 35 days before the course ends and during the loan period

Not complying with any of the abovementioned requirements, getting a student start-up scholarship from the Department of Veterans’ affairs, or getting an Indigenous Student Success Program scholarship from the NIAA (National Indigenous Australians Agency) would have you dismissed.

How to Apply?

centrelink start up loan

You can apply for the student start-up loan if you already receive student payments or are claiming them, you just have to do the following:

  • Log into your online Centrelink Account 
  • From the menu, choose “Payments and Claims” 
  • Choose “Apply for/Manage Student start-up loan”
  • Select the term or hardship centrelink loans period over which you want your loan to be
  • Carefully inspect the Terms and Conditions
  • Accept the declaration 
  • End the process by submitting the application

What’s the Best Plan to Repay the Loan?

centrelink student loans

Once your income exceeds the minimum repayment cap, you’ll start paying the loan back through the Australian Taxation Office (ATO). 

The process is similar to any other loan repayment, like the Higher Education Loan Programme (HELP) or Higher Education Contribution Scheme (HECS) debts.

Bear in mind, however, that if your circumstances change, you have to update the authorities. This includes changes to your personal or contact details, your bank information, your relationship status (if you’re separated or gotten a partner), and your study (if you change courses or make modifications to your study load).

You can do so through the online Centrelink account, the Express Plus Centrelink mobile app, or the Centrelink phone self service.

How Will I Receive My Funds?

centrelink youth allowance loan

Drawing from our experience, if you’re applying for a new course and have completed your application for the Centrelink Student Start-up loan, you’ll receive your funds for quick cash loans for single mothers with the next regular student payment. When applying for future loan periods, you’ll receive $1,094 with each set amount along with your regular student payment.

It would either be on the first of January or the first of July, with the requirement of receiving at least $1 of the regular student loan payment you get in the matter of those 2 weeks.

Final Thoughts

A student loan, especially a start-up one, is an excellent way to manage finances to better afford fast centrelink loans while you’re still completing your studies. 

The best part about the start-up one is that you’ll be able to be financially independent once your income reaches a certain threshold and you pay back the loan, while the other ones are great for those who just want to finish their studies and then concentrate on working at a well-paid job that helps them pay centrelink computer loans back.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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