Dealing with disputed Financial Supplement Loan (FSL) repayments 102-15010030

The Student Financial Supplement Scheme (SFSS) was a voluntary loan scheme which gave eligible tertiary students the option of borrowing money to help cover their expenses while they studied. Students were able to obtain a FSL through this scheme.

The funds for the FSL were provided by the Commonwealth Bank of Australia (CBA). When the student applied for FSL, the student entered into a loan contract with the CBA for a contract period. All loans were administered by the Services Australia until the end of the contract period. At the end of the contract period, the outstanding loan was transferred to the Australian Taxation Office (ATO). The loan then became a debt to the Commonwealth and is repayable through the taxation system.

Note: the final balance on all outstanding loans will show as zero on the agency's system. This does not mean that the loan has been zeroed off, just that the balance has now been transferred to the ATO for recovery through the taxation system.

Disputes can arise if a customer does not agree with the remaining balance of the loan or they do not recall taking out a loan. The customer's loan record must be checked first to see which repayments the customer is disputing. If the customer believes they have made a repayment that is not recorded, they will need to give details of when and where (at which branch of the CBA or Australia Post or which Centrelink Service Centre) they made the repayment, and how much it was for.

Note: if a customer wishes to appeal their FSL decision, Service Officers should refer the case to a Subject Matter Expert (SME) and Authorised Review Officer (ARO) following local procedures.

If the enquiry is regarding a repayment that was made after the FSL was transferred to the ATO, the customer should be referred to the ATO website.

If a customer requests further information about their FSL, the Service Officer should contact the Student Programs Team. The Student Programs Team can arrange to have copies of the original loan contract and transaction history sent to the customer.

If a customer seeks a waiver of their FSL debt, this must be done under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Their request should be referred to the Department of Finance for a decision.