Student Start-up Loan (SSL) Study requirements 010-07030090

Scenario

Description

1

QTD type (QTT) A customer does not meet study requirements

Aminah is a Youth Allowance student who starts their approved scholarship course on 28 July 2021. They applied for Student Start-up Loan for Loan Period 2 2021 as part of their online claim. Their claim is finalised on 10 August 2021 - their QTD is 10 August 2021 and QTD type (QTT) is A.

Aminah stops studying on 31 August 2021 as they do not want to continue to study their course.

Although Aminah remains eligible on their QTD 10 August 2021, they have not met the SSL study requirements for the loan period as they ceased studying within 35 days of their QTD and the reason was not due to exceptional circumstances beyond their control.

The system will raise a Social Security debt and the debt will be recovered by Services Australia. The SSL payment will not be transferred to the ATO to recover through the taxation system.

2

QTD type (QTT) A customer completes course within 35 days of QTD

Sam is completing the final semester of their approved scholarship course and their course will end on 20 November 2021. Sam uses the 'Apply for/Manage Student Start-up Loan' online service on 10 September 2021 to apply for SSL for Loan Period 2 2021 but due to reporting high income Sam is current on nil entitlement until 1 November 2021.

Sam applied for the loan more than 35 days before their course ended, so has met claim time limits. Their QTD is 1 November 2021 as this is the first day after submitting their claim that Sam is payable due to high income. Their QTD Type (QTT) is A.

Sam was enrolled and completes the course on 20 November. It does not matter that this was within 35 days of their QTD as they completed their course, and therefore has met the study requirements for SSL for this loan period.

Sam does not have a Social Security/ABSTUDY debt. The SSL will be transferred to the ATO and Sam will need to repay this loan through the taxation system.

3

QTD type (QTT) C & customer ceases course within 35 days of QTD

Jane lodged a claim for ABSTUDY on 1 November 2020. The approved scholarship course started 1 March 2020 and finishes on 28 November 2022. They applied for SSL for loan period 2 2020. Their claim was processed on 9 January 2021.

Jane's SSL was determined on 9 January 2021. This is after the loan period has ended, therefore their QTD is 31 December 2020 and QTD Type (QTT) is C, the last day of the loan period.

Jane ceased studying on 20 January 2021, as they no longer wanted to continue in their course, there were no exceptional circumstances. Even though the date they ceased studying is in loan period 1 2021, it was still within 35 days of their QTD for loan period 2 2020, meaning they have not met the study requirements for loan period 2 2020.

The system will raise an ABSTUDY debt and the debt will be recovered by Services Australia. The SSL payment will not be transferred to the ATO to recover through the taxation system.

4

QTD type (QTT) B

Sophie lodged a claim for Youth Allowance on 20 September 2019. Their approved scholarship course started on 25 February 2017 and finished 28 October 2019. They applied for SSL for loan period 2 2019 as part of their claim as there were more than 35 days before the end of the course. Their claim was processed on 15 November 2019.

Sophie's SSL was determined on 15 November 2019. As this is after their course has ended, their QTD is 28 October 2019 and QTD Type (QTT) is B (the last day of the approved scholarship course).

As the QTD Type (QTT) is B, there is an exception to the study rules and there is no study requirement for that loan period. This means that they must be qualified and studying on the QTD (the last day of the course), but has no obligation to continue studying after this to remain eligible to SSL for that loan period.

5

Change of course

Henry is already receiving Austudy and undertaking an approved scholarship course when they apply for SSL. Their course end date is 30 November 2021.

On 15 July 2021 Henry applies for SSL for loan period 2 2021, 1 July to 31 December 2021 (QTD date 15 July 2021; QTD type A; SSL for this loan period is paid 20 July 2021).

On 6 August 2021, Henry ceases study without completing the course. Henry commences another approved scholarship course on 9 August 2021.

Despite the course change, Henry has met their study requirements for loan period 2 2021 as Henry is enrolled in an approved scholarship course on the 35th day after their QTD.

He does not have a Social Security/ABSTUDY debt. The SSL will be transferred to the ATO and Henry will need to repay this loan through the taxation system.

6

Change of course and assessing study requirements for the current and previous loan periods - continuing student for SSL purposes

Shaun is already receiving Youth Allowance and undertaking an approved scholarship course when they apply for SSL. Their course end date is 30 November 2022.

On 10 June 2021 Shaun applies for SSL for the following loan periods:

• Loan period 1: 1 January to 30 June 2021 (QTD date 10 June 2021; QTD type A; SSL for this loan period is paid on 20 June 2021)
• Loan period 2: 1 July to 31 December 2021 (QTD date 1 July 2021; QTD type A; SSL paid on 3 July 2021)

Shaun contacts Services Australia on 26 July 2021 to advise that they withdrew from their course on 26 June 2021 after completing Semester 1. Shaun has enrolled in another approved scholarship course which started today. (in the next available study period following their first course). Shaun is considered a continuing/intending student as they have commenced another approved course in the next available study period. EDCH is coded as follows:

Course ID 1:

• Inst Course End Date: Remains unchanged
• Student End Date: 26 June 2021

Course ID 2:

• PSED: 27 June 2021
• Inst Course Start Date & Student Start Date: 26 July 2021

The NSS system reads that Shaun is a continuing student and therefore payable between 27 June 2021 and 26 July 2021. This is because the Course 2 PSED is coded as the day after the Student End Date for Course 1.

How does this course change affect their study requirements?

• Loan period 1: Shaun meets the definition of a continuing student for the SSL purposes as he:
• completed semester 1 in an approved scholarship course at a full time study load, and
• commenced semester 2 in another approved scholarship course at a full time study load
• This means that Shaun is considered to be enrolled on the 35th day after their QTD for this loan period. It is irrelevant that the 35th day occurs after the loan period has ended
• Loan period 2: Shaun has remained enrolled in an approved scholarship course and is considered a continuing student for the purpose of SSL. It does not matter that the course Shaun is enrolled in on the 35th day after their QTD is a different course. As the course recorded on EDC as at their QTD (01.07.2021) has now changed from Course ID 1 to Course ID 2, the system will reassess their SSL entitlement. As SSL for this loan period has already been paid, their acceptance will attach to the new course. Their QTD will move to the first qualifying day after the new course start date

Shaun meets study requirements for both loan periods. There is no Social Security debt. The SSL's will be transferred to the ATO and will need to be repaid through the taxation system.

Note: how EDCH is coded for a customer on ABSTUDY in this situation is different, see Specific coding requirements for paying ABSTUDY students over a vacation break. That is there is no gap between the student end date of the previous course, and the student start date of the new course. The system will determine they are a continuing student and can apply study requirements correctly.

7

Customer is paid SSL and later found to not be eligible

Leslie is receiving Austudy and is recorded as studying a Bachelor of Science at UNSW (an approved scholarship course) when they apply for SSL online. The course is coded for the period 17 February 2020 to 8 December 2022.

On 15 March 2021 Leslie applies for SSL for loan period 1 2021 (1 January to 30 June). Their QTD date is 15 March 2021 and SSL for this loan period is paid on 17 March 2021.

On 10 April 2021, a Student Payment Review identifies that Leslie withdrew from their approved scholarship course on 10 February 2021 (for example, they did not commence semester 1 2021). Their education details are updated and their Austudy is cancelled from 10 February 2021 for reason Not a Student (NST).

Leslie is not qualified for the SSL they received because, as at their QTD, they are:

• not a full time student, and
• not receiving a student income support payment

The SSL that Leslie received is raised as a Social Security Debt to be repaid through Centrelink.

8

Customer with an SSL debt regains entitlement later in the same loan period

Following Leslie's story (from example above), what happens if they returns to an approved scholarship course later in that loan period?

Later in the same loan period (1 2021) Leslie recommences study in an approved scholarship course and lodges an Austudy claim on 31 May 2021. In their claim Leslie advises:

• Course: Bachelor of Arts at Open Universities Australia (an approved scholarship course)
• Study Dates: 31 May 2021 to 31 March 2023
• SSL - acceptance for the following loan periods:
• Loan Period 1 2021 (01 January to 30 June 2021)
• Loan Period 2 2021 (01 July to 31 December 2021)

Leslie's claim is processed on 5 June 2021 and is granted from the lodgement date 31 May 2021. Leslie has no income or waiting periods and is payable for their Austudy from 31 May 2021. They also meet SSL entitlement:

• their acceptance for this loan period will attach to the new course, and
• their QTD for Loan Period 1 2021 re-calculates to 5 June 2021, QTT A. This is because this is the day the claim for SSL for the loan period was determined.

Because Leslie has an existing SSL debt for this loan period, when entitlement is re-established (in the new claim activity) the SSL debt will be offset.

9

Exceptional circumstances - maintaining SSL entitlement

Jackson is already receiving Youth Allowance and undertaking an approved scholarship course when they apply for SSL. Their course end date is 15 November 2023.

On 10 October 2020 Jackson applies for SSL for the following loan periods:

• Loan period 1: 1 January to 30 June 2021 (QTD date 01 January 2021; QTD type A; SSL for this loan period is paid on 5 January 2021)
• Loan period 2: 1 July to 31 December 2021 (QTD date 1 July 2021; QTD type A; SSL paid on 3 July 2021)

On 10 July 2021, Jackson is in a serious car accident. As a result of the injuries, they will have to undergo multiple surgeries and intense rehabilitation for at least 12 months. Jackson withdraws from the course on 3 August 2021 to focus on treatment.

This affects their study requirements in loan period 2, as they are not enrolled in an approved scholarship course on the 35th day after their QTD in this loan period.

Jackson provides a written statement outlining the accident, rehabilitation and treatment along with a letter from the hospital. As Jackson failed to meet the study requirement due to exceptional circumstances beyond their control and provided evidence, the loan can be 'maintained' - meaning it will not be raised as a Social Security Debt and will not have to be repaid through the ATO.