Student Start-up Scholarship (SSS) payment and coding 010-07030030

The SSS is intended to assist with the up-front costs of tertiary study, such as textbooks and specialised equipment.

From 1 January 2016

SSS was replaced by a voluntary Student Start-up Loan (SSL) which must be repaid through the tax system once the recipient’s taxable income reaches a certain threshold. Grandfathering provisions apply for students who received an SSS or Commonwealth Education Costs (CECS) Scholarship before 1 January 2016 and meet the eligibility criteria for the Scholarship payment. See Student Start-up Scholarship (SSS) eligibility for information about eligibility for this payment.

Students who receive an SSS as a grandfathered customer are not eligible to apply for a Student Start-up Loan for the same period. If a previously grandfathered customer returns to a student payment after a break in eligibility, they may no longer qualify for the scholarship under these provisions, but they may apply for a Student Start-up Loan/s for the remainder of their course. See Student Start-up Loan (SSL) for information about eligibility for this payment.

From 1 July 2017

SSS grandfathering provisions ceased and therefore no SSS will be paid from 1 July 2017 even if they are grandfathered.

The SSS effectively replaces the university offered CECS. CECSs are now only offered by universities as a limited program for Indigenous students.

Students cannot receive CECS and SSS in relation to the same period, however, a customer may choose to relinquish their existing CECS in order to receive an SSS.

If the student is paid both CECS and SSS for the same period, the SSS payment will become an overpayment.

Note: students who qualify for CECS in a particular period but do not receive their full entitlement due to suspension of the scholarship (such as due to poor study results) cannot qualify for SSS for the same period.

Grandfathering provisions ceased from 1 July 2017. Customers were grandfathered if they had received an SSS or Commonwealth Education Costs Scholarship (CECS) before 1 January 2016 and has been continuously in receipt of a student payment (Youth Allowance (YA) as a student, Austudy or ABSTUDY Living Allowance) since they received their most recent SSS/CECS payment. See Student Start-up Scholarship (SSS) eligibility for information on grandfathering.

SSS was paid automatically to eligible students twice a year, usually around the start of each semester, based on a traditional 2 semester academic year. However, from 1 July 2017 no SSS payment will be made, including customers who were previously grandfathered.

Receipt of basic benefit is a qualification requirement for Services Australia Scholarships. This means SSS is not payable if the student's reported income reduces the person's basic benefit to zero. Receipt of Rent Assistance (RA) and/or Pharmaceutical Allowance (PhA) or other supplements do not qualify the student for Services Australia Scholarships.

For continuing students who qualify for SSS, the payment was usually issued in late February or early March for the first period of the year, and in late July for the second period.

A letter from the agency will be sent to advise customers of the expected pay date for their scholarship.

SSS payments are:

• a non-taxable payment that is not means tested
• for income managed customers, income managed at 100%
• not included when calculating a customer's advance payment entitlements
• not treated as income for Social Security purposes

An SSS debt may be raised only if a customer had no entitlement to an SSS during the entire period for which that payment was made (SSS periods are 1 January to 30 June, and 1 July to 31 December each year).

If a person is found to have been ineligible for SSS in relation to a particular SSS period, the full amount of SS paid for that period is raised as a debt. It is not possible to raise an SSS debt for a proportional amount.

Some debt shells will be automatically raised based on coding on the Customer Study Details (EDC) screen in Process Direct or on the Education Course Details (EDC) screen in Customer First. Where a debt shell has been created due to the student not studying an approved scholarship course on Day 35, Service Officers must check the providers actual start date and the student's actual qualification before raising an overpayment. For more information, see Scholarship study requirements.

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights