Australia’s Student Grant vs. Start-up Loan: What’s Free, What’s Not in 2025?

In March 2025, eligible students across Australia will be able to get a $1,000 Student Assistance grant. This is part of the government’s ongoing attempt to make college less expensive. This help is meant to make it easier to handle your study costs, whether you’re a full-time college student, a TAFE student, or an intern who has to pay for their training. This article will tell you what you need to do to be eligible, how to apply, and the most important things you need to do to make sure you get the money on time. With this extra money, you might be able to handle college life without breaking the bank.

The $1,000 Student Start-up Loan in Australia

That’s why the Student Start-up Loan is so important for qualified students who need help paying for school-related costs. It’s important to understand that this is a loan and not a grant, even though it helps right away. Before you apply, you should think about how much money you need right now, look into other ways to get help like scholarships or loans, and plan how you will spend the money so that you don’t end up with too much debt. Borrowing responsibly today can help you get through school without putting a strain on your future.

Feature	Details
Loan Amount	$1,321 per loan period (twice a year)
Loan Terms	– First Period: January 1 – June 30 – Second Period: July 1 – December 31
Eligibility Criteria	– Must receive Youth Allowance (students), Austudy, or ABSTUDY Living Allowance – Must be enrolled full-time at a recognized higher education provider
Application Method	Apply via Centrelink through your myGov account
Repayment Terms	Added to HELP debt; repayments begin once your income exceeds $51,550
Official Resource	Services Australia – Student Start-up Loan

Who Can Claim Australia’s $1,000 Student Support This March 2025?

The $1,000 payment is only given to students who meet the following requirements:

• Full-Time Enrollment: You must be a student at a university, TAFE, RTO, or private school that has been approved by the government.
• Apprentices and trainees: They can apply if they are full-time students in a government-approved school.
• Financial Need: Students from low-income families or those who get Youth Allowance, Austudy, or ABSTUDY are given priority.
• Residency: You must be an Australian citizen, a permanent resident, or a person with a qualified visa who lives and studies in Australia.
• Cases of hardship: Students who are having a very hard time with their personal or financial situation may get extra help.
• Adding a supporting comment to your application can make it stronger.

Who Can Get the Student Start-Up Loan?

You must be getting a qualified government payment, such as Youth Allowance, Austudy, or ABSTUDY Living Allowance, in order to be eligible. You also have to be a full-time student in an approved college study; part-time students can’t apply. In addition, you can’t get this loan if you got the Student Start-up Scholarship before 2016. The following things must be true for students to be qualified for the Student Start-up Loan:

Must Be on an Approved Student Payment

To qualify, you need to be currently receiving one of these government support payments:

• Youth Allowance (for students)
• Austudy
• ABSTUDY Living Allowance

Enrolled in a Full-Time Approved Course

You must be studying full-time at an accredited college, university, TAFE, or other recognized institution.

• Note: Part-time students are not eligible

Haven’t Received the Student Start-up Scholarship Before

• If you were granted the Student Start-up Scholarship before 2016, you cannot apply for this loan.

Additional Financial Support Options for Students in Australia

Youth Allowance

A bi-weekly government payment designed for students and apprentices aged 16 to 24 who need financial assistance. You can check your eligibility through the Services Australia website.

Austudy

A support payment was available to full-time students who were 25 years or older. Applications are processed via Services Australia.

Student Start-up Loan

This is a voluntary, interest-free loan of $1,321 per study period, aimed at helping students cover essential education-related costs. Applications must be submitted through your myGov account via Centrelink.

When Is the Student Start-up Loan Paid?

• First-time applicants: Payment is released after your course officially begins.
• Returning students: The loan is disbursed within the first two weeks of each loan period (January or July).

Important: You must be receiving at least $1 from an approved student payment to qualify for the loan.

Loan Repayment Process

• The loan is added to your HELP debt.
• It’s indexed annually (no interest charged).
• Repayments begin when your yearly income surpasses $51,550, and they’re automatically deducted through your tax return.

Common Pitfalls to Avoid

• Don’t spend loan money on non-essential items like entertainment or luxury purchases.
• Only apply if you truly need the funds.
• Be mindful that while the loan is interest-free, indexation increases the debt over time.

Other Financial Assistance Options Worth Exploring

• HECS-HELP: A government loan to help cover tuition fees.
• Relocation Scholarships: Available for students who need to move away from home to study.
• Commonwealth Scholarships: Special support programs for Indigenous Australian students.

Frequently Asked Questions

Who is eligible for the Student Start-up Loan?

Full-time students enrolled in an approved institution who receive Youth Allowance, Austudy, or ABSTUDY. Must be an Australian citizen, permanent resident, or eligible visa holder. Hardship cases may be considered.

What financial support is available for students in Australia?

Students may qualify for Youth Allowance (ages 16–24), Austudy (25+), and a $1,321 interest-free Student Start-up Loan per semester.

When is the Student Start-up Loan paid?

New students get paid after their course begins; existing students receive it in the first fortnight of the loan period (January or July). You must get at least $1 from a student payment.

How does repayment work for the Student Start-up Loan?

It’s added to your HELP debt, indexed annually. Repayments start when your income exceeds $51,550 and are deducted through your tax return.