Remove Grandfathering of Student Start-Up Scholarship Recipients

From 1 January 2015, students will be able to access the Student Start-up Loan, which replaces the Student Start-up Scholarship at the same rate of payment.

This measure started on 1 January 2016 with changes. See Student Start-Up Loan for further information.

Description of the measure

From 1 January 2015, students will be able to access the Student Start-up Loan, which replaces the Student Start-up Scholarship at the same rate of payment.

Student Start-up Loans must be repaid via the tax system once the recipient’s taxable income reaches a certain threshold. This is similar to the arrangements currently applied to the repayment of Higher Education Loan Program (HELP) debts. Students who receive a Student Start-up Scholarship prior to 1 January 2015 will not be required to repay it.

The amount of the loan is a lump sum of $1,025 payable for each six month qualifying period. The qualifying periods are 1 January to 30 June and 1 July to 31 December each year.

Eligible students will be able to claim a loan when they make a claim for a student payment (Youth Allowance (student), Austudy, ABSTUDY Living Allowance), or any time up until the end of the relevant six month loan period.

Questions and answers

Who will be affected by this measure?

If you are a student in receipt of an eligible income support payment, you will be able to apply for a Student Start-up Loan which replaces the Student Start-up Scholarship.

Students who receive a Student Start-up Scholarship prior to 1 January 2015 will not be required to repay it.

Am I eligible for this measure?

If you are a student in receipt of an eligible income support payment, you will be able to apply for a Student Start-up Loan which replaces the Student Start-up Scholarship.

When will this measure start and finish?

This measure starts on 1 January 2015 and is ongoing.

Page last updated: 23 March 2016

This information was printed Thursday 29 September 2016 from humanservices.gov.au/corporate/budget/budget-2014-15/budget-measures/young-people-and-students/remove-grandfathering-student-start-scholarship-recipients It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.