Picture this: you check your bank app and see a surprise deposit of $1,321. While that might sound like a lucky fluke, it’s actually a reality for many Australian students receiving the 2025 Student Start-up Loan (SSL)—a government-backed support to help ease the rising cost of studying. So, who’s eligible for this handy cash injection, and how do you get it? In this guide, we’ll walk you through everything about the $1,321 payment—from who can claim it to how and when it’s paid—plus tips on how to use it smartly and avoid pitfalls.

What Exactly Is the $1,321 Payment?

The $1,321 support payment, officially known as the Student Start-up Loan, is an interest-free, optional loan offered by the Australian government through Services Australia. It’s there to assist full-time students with study-related costs such as textbooks, laptops, public transport, and everyday living expenses. Unlike a grant, though, this is a loan—you’ll have to pay it back once your income hits a certain level, much like the HECS-HELP scheme.

This loan is distributed twice a year, meaning eligible students can receive up to $2,642 annually ($1,321 per semester). It’s a much-needed boost for those juggling tight budgets. Just ask Sarah, a 22-year-old Melbourne nursing student, who used her SSL funds to purchase a new laptop and cover her rent during work placements. “It allowed me to stay on track with uni without the stress of bills piling up,” she shares.

Why Was the Student Start-up Loan Created?

The SSL was introduced to provide extra financial support for students receiving Centrelink payments such as Youth Allowance, Austudy, or ABSTUDY Living Allowance. Services Australia’s goal with the SSL is to remove financial hurdles that may keep students from completing their education. With living costs soaring in 2025—especially rent increases in cities like Sydney and Melbourne—the SSL is more important than ever.

Who Can Get the $1,321 Loan?

The SSL isn’t available to everyone. You’ll need to tick specific boxes set by Services Australia. Here’s a snapshot of the main criteria:

Eligibility Requirements

• Full-Time Enrolment: You must be studying full-time at an eligible institution (university, TAFE, or private college) in a course that leads to a degree or diploma.

• No Other Scholarship: You can’t receive a Commonwealth Scholarship at the same time.

• Tax File Number: A valid tax file number is required for loan processing.

• Study Conditions: You need to still be enrolled and meet all requirements by the 35th day of your course.

Take James, for instance. He’s a 19-year-old engineering student in Sydney who qualifies because he studies full-time and receives Youth Allowance. His friend Emma, though, is on a Commonwealth Scholarship, so she’s not eligible.

Who’s Not Eligible?

If you’re only studying part-time, not receiving Centrelink benefits, or your course isn’t approved, you won’t be eligible. It’s always best to double-check your status with Services Australia before applying.

When Will the $1,321 Land in Your Bank Account?

Timing is crucial for getting your hands on this loan. The SSL is available twice a year, coinciding with the university semesters:

• January 1 – June 20: For the first half of the year.

• July 1 – December 31: For the second half.

You must apply at least 35 days before your course ends. If approved, the payment usually arrives alongside your regular Centrelink deposit. Services Australia urges students to apply as early as possible—especially around the start of semesters in January and July—to avoid processing delays.

2025 Expected Payment Timelines
Payments follow Centrelink’s usual fortnightly schedule. For example, if you apply and are approved in January, you may see your payment by mid-February depending on your pay cycle. Just make sure your banking info on MyGov is correct. Sarah, the nursing student mentioned earlier, got her payment in March 2024—just in time to buy textbooks for her upcoming exams.

How to Apply for the Student Start-up Loan

If you’re already on Centrelink and connected through MyGov, applying is pretty straightforward. Here’s how:

1. Log into MyGov: Head over to my.gov.au and sign in. If you don’t have an account yet, set one up and link it to Centrelink.

2. Update Your Details: Make sure all your study and payment details are accurate.

3. Find the Loan Option: Go to “Payments and Claims” and then click on “Apply for/Manage Student Start-up Loan.”

4. Fill in the Form: Enter your study and financial info carefully.

5. Submit and Wait: After submitting, Centrelink will assess your application and notify you via MyGov once it’s approved.

James applied in December 2024 and had his funds cleared by February 2025. “The process was simpler than I expected,” he said. “Just make sure all your details are spot-on.”

Pro Tip: Avoid Application Delays
A mismatched tax file number or outdated study info can hold up your application. Double-check everything to avoid last-minute stress.

Repaying the Student Start-up Loan

Remember, the SSL isn’t free cash—it’s a repayable loan through the ATO. You’ll start repaying once your income exceeds the set threshold, which is around $54,435 in 2025 (adjusted annually for inflation).

Repayments work similarly to HECS-HELP, deducted as a percentage of your income. So if you earn $60,000, you might repay around 2–3% of your yearly income. You can also pay extra voluntarily to clear the debt faster.

Journalist Lenore Taylor advises students to think long-term before applying. “The SSL is helpful in the short term, but always consider what it means for your future finances,” she explains. Services Australia also encourages students to explore grants and scholarships first before committing to a loan.

Real-World Example: Mia’s Story

Mia, a 26-year-old teaching student on Austudy, took out the SSL in 2024 and received the full $2,642. After graduating, she began a job earning $65,000. Her repayments came to roughly $1,300 per year. “It helped me when I really needed it,” she said. “But looking back, I probably should’ve applied for scholarships too.”

Pros and Cons of the SSL

The Student Start-up Loan has its perks, but there are trade-offs. Here’s a breakdown:

Benefits

• Immediate Help: Covers critical needs like textbooks, laptops, and rent.

• No Tax Impact: It won’t affect your taxable income or other benefits.

• Flexible Spending: You can use the funds however you see fit—just be smart about it.

Risks

• Repayment Required: You must repay the full amount, and indexation may increase it over time.

• Potential Debt Buildup: Repeated borrowing could lead to a larger loan balance.

• Budget Pressure: Without careful planning, repayments may squeeze your budget post-graduation.

Services Australia recommends exploring other funding options first and only applying if the loan truly meets your financial needs.

Tips from the Experts: Make Your Loan Count

Financial planner Claire Mackay advises students to think tactically. “Use your SSL for high-priority study costs—like a dependable laptop or transport for placements—not takeaway food or impulse buys,” she says. She also recommends setting a clear repayment plan and tracking spending.

Sarah did just that—she used the loan for her essential expenses and stuck to a budget. “It helped me build better habits and focus on what I needed most,” she said.

FAQs: Your Questions About the $1,321 Loan Answered

Q: Who can apply for the Student Start-up Loan?
A: Full-time students who receive Youth Allowance, Austudy, or ABSTUDY Living Allowance and aren’t on a Commonwealth Scholarship.

Q: When are the 2025 payments made?
A: Payments go out twice a year, around February/March and August/September, depending on when your application is approved and your Centrelink cycle.

Q: Is repayment mandatory?
A: Yes, the SSL is a loan and must be paid back once your income crosses the repayment threshold (around $54,435 in 2025).

Q: Can I use the loan for personal expenses?
A: Technically yes, but it’s meant for study-related costs. Financial experts urge responsible use.

Q: What if I don’t repay the loan?
A: The debt will continue to grow with indexation, and the ATO may take recovery action. Talk to Services Australia if you face difficulties.

Final Thoughts: Should You Take the $1,321 Cash Boost?

The Student Start-up Loan offers a timely boost for students who need extra support to manage their education expenses. Whether it’s buying a laptop, paying rent, or affording materials, the SSL can help take some pressure off. But it’s not a decision to make lightly—accumulating debt has long-term effects.

Think carefully: could a scholarship or part-time job meet your needs instead? Are you prepared for repayments down the track? By approaching it with a plan like Sarah, James, or Mia, you can make the most of the SSL—without setting yourself back financially.

If you’re ready to take the next step, head to MyGov or check the Services Australia site for details. Don’t miss your chance to lighten the load on your 2025 study journey!