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

From 1 July 2016, customers who receive a Student Start-up Loan (SSL) must satisfy the study requirements set out in a Ministerial Determination (Student Start-up Loan Debt and ABSTUDY Student Start-up Loan Overpayment Determination 2016).

Study requirements apply to each SSL payment a person receives. Depending on each customer's circumstances, a different study requirement may apply in different loan periods.

Where a customer applies for SSL and the information in their claim indicates they will not meet the study requirements, the loan will be rejected to prevent them incurring a Social Security debt (or an ABSTUDY debt, if the customer's primary payment is ABSTUDY Living Allowance).

Where SSL has already been paid and the customer does not meet the study requirements for a particular loan (for example if a Students Payments Review identifies that the customer was no longer enrolled in an approved scholarship course) the customer may have a Social Security/ABSTUDY debt for the amount of the loan.

Social Security/ABSTUDY debts for SSL are not repaid through the Australian taxation system. Services Australia recover them like other overpayments. Note: SSL debts automatically raise with no investigation of the debt shell. Ensure SSL debt outcomes are correct.

To be/remain eligible for SSL, a person must be enrolled in an approved scholarship course on the later of:

• the end of the 35th day after their QTD date in the loan period, or
• the end of the 35th day after the start of their course if it is in the loan period

If an SSL is paid and the customer does not meet this requirement and the exceptions below do not apply, the loan payment will become a Social Security/ABSTUDY debt.

The QTD date and QTD type (QTT) are displayed on the !SSLS screen. There are three exceptions to study requirements:

QTD Type A completing course within 35 days

• the customer's QTD type is A ('the day their claim for SSL for the period was determined'), and
• they complete their approved scholarship course within 35 days of their QTD date for that loan period

This exception only applies if the customer completes their course within 35 days, not if they withdraw, cease study, or reduce their study load within the 35-day period. The customer must also complete their course and be enrolled on the last day of the course.

If this exception applies, the customer meets the study requirement for SSL and the loan will be repaid through the taxation system as per the original loan conditions.

QTD Type B

If the customer's QTD type is B ('the last day of the approved scholarship course') there is no study requirement for that loan period. That is the customer must be enrolled and studying on the last day of the course, there is no further requirement to study after this date.

If this exception applies, the loan must be repaid through the taxation system as usual.

Exceptional circumstances, ‘maintaining’ SSL entitlement

The loan will not be a Social Security/ABSTUDY debt, if a:

• customer fails to meet the study requirement for a loan, and
• determination has been made (under 1223ABF(3) of the Social Security Act 1991 or 38A(3) of the Student Assistance Act 1973) that there are exceptional circumstances beyond their control

This is referred to as 'maintaining' the SSL.

If this exception applies:

• the customer maintains entitlement to SSL payment
• the loan will not be recovered through the taxation system, and
• the loan amount must not be transferred to the Australian Taxation Office (ATO) for recovery. No debt will be raised by either the agency or the ATO

These exceptions show that the QTD type applicable to a particular loan payment may affect a customer's study requirements for a loan payment.

If a student applies in advance for SSL for their second and/or subsequent loan period, the system starts checking their SSL eligibility on the first day of the loan period. In these cases, the QTD date will usually be:

• the first day of the loan period if the customer receives at least $1 of basic benefit (Youth Allowance, Austudy or ABSTUDY Living Allowance) on that date, or
• the first day in the loan period when they receive at least $1 of basic benefit (Youth Allowance, Austudy or ABSTUDY Living Allowance)

The system applies the SSL study requirement for the second or subsequent loan period from the customer's QTD date in that loan period.

Note: when reviewing a decision to raise a Social Security/ABSTUDY SSL debt due to a customer not meeting the SSL study requirement, the Service Officer must also consider whether any of the exceptions apply to the case.

If a customer has a change in study details, their compliance with the SSL study requirements must be checked for all loan periods for which SSL has been paid. This is because a change in study details may affect compliance with the SSL study requirements in a previous loan period. See the Resources page for examples.

SSL overpayments arising from a customer's failure to meet the SSL study requirements are raised as debts under section 1223ABF of the Social Security Act 1991 (for Youth Allowance/Austudy customers) or as debts under Section 38A of the Student Assistance Act 1973 (for ABSTUDY customers).

The date of effect for a Social Security/ABSTUDY debt of SSL is the date the loan was paid to the customer.