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 her approved scholarship course on 28 July 2021. She applied for Student Start-up Loan for Loan Period 2 2021 as part of her online claim. Her claim is finalised on 10 August 2021 - her QTD is 10 August 2021 and her QTD type (QTT) is A.

Aminah stops studying on 31 August 2021 as she does not want to continue to study her course.

Although Aminah remains eligible on her QTD 10 August 2021, she has not met the SSL study requirements for the loan period as she ceased studying within 35 days of her QTD and the reason was not due to exceptional circumstances beyond her 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 his approved scholarship course and his course will end on 20 November 2021. He 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 he is current on nil entitlement until 1 November 2021.

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

Sam was enrolled and completes his course on 20 November. It does not matter that this was within 35 days of his QTD as he completed his 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. Her approved scholarship course started 1 March 2020 and finishes on 28 November 2022. She applied for SSL for loan period 2 2020. Her 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 her 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 she no longer wanted to continue in her course, there were no exceptional circumstances. Even though the date she ceased studying is in loan period 1 2021, it was still within 35 days of her QTD for loan period 2 2020, meaning she has 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. Her approved scholarship course started on 25 February 2017 and finished 28 October 2019. She applied for SSL for loan period 2 2019 as part of her claim as there were more than 35 days before the end of the course. Her claim was processed on 15 November 2019.

Sophie's SSL was determined on 15 November 2019. As this is after her course has ended, her 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 she 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 he applies for SSL. His course end date is 30 November 2021.

On 15 July 2021 he 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 his course. He commences another approved scholarship course on 9 August 2021.

Despite the course change, Henry has met his study requirements for loan period 2 2021 as he is enrolled in an approved scholarship course on the 35th day after his 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 he applies for SSL. His course end date is 30 November 2022.

On 10 June 2021 he 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 he withdrew from his course on 26 June 2021 after completing Semester 1. He has enrolled in another approved scholarship course which started today. (in the next available study period following his first course) He is considered a continuing/intending student as he has 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 he 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 his 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 he is considered to be enrolled on the 35th day after his 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 he is enrolled in on the 35th day after his QTD is a different course. As the course recorded on EDC as at his QTD (01.07.2021) has now changed from Course ID 1 to Course ID 2, the system will reassess his SSL entitlement. As SSL for this loan period has already been paid, his acceptance will attach to the new course. His 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 he applies for SSL online. His course is coded for the period 17 February 2020 to 8 December 2022.

On 15 March 2021 he applies for SSL for loan period 1 2021 (1 January to 30 June). His 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 his approved scholarship course on 10 February 2021 (for example, he did not commence semester 1 2021). His education details are updated and his Austudy is cancelled from 10 February 2021 for reason Not a Student (NST).

Leslie is not qualified for the SSL he received because, as at his QTD:

• he is not a full time student, and
• is 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 he 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 his claim he 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. He has no income or waiting periods and is payable for his Austudy from 31 May 2021. He also meets SSL entitlement:

• his acceptance for this loan period will attach to the new course, and
• his 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 he applies for SSL. His course end date is 15 November 2023.

On 10 October 2020 he 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 he sustains, he will have to undergo multiple surgeries and intense rehabilitation for at least 12 months. He withdraws from his course on 3 August 2021 to focus on treatment.

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

Jackson provides a written statement outlining the accident, rehabilitation and treatment along with a letter from the hospital. As he failed to meet the study requirement due to exceptional circumstances beyond his 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.