1.2.7.40 Student Financial Supplement Scheme (SFSS) - Description

The SFSS

No financial supplement loans are available from 1 January 2004.

From 1 January 2004, the SFSS is closed administratively as there is no agreement with a participating corporation for the provision of financial supplement. This means that no new loans are available under this scheme from 1 January 2004.

For existing loans, a person's loan repayment arrangements will continue unchanged. Students may make voluntary repayments to the CBA during the first 5 years of their loan contract. The Commonwealth Government will then buy-back the loans and collect repayments through the taxation system. Loan recipients do not have to repay their loan until their income is above average weekly earnings.

Background information

Prior to 1 July 1998, students could access a loan under the former Austudy Scheme. The loan was previously called the Austudy Supplement. After 1 July 1998, the SFSS allowed eligible tertiary students to increase the amount of assistance they were receiving by taking out a loan under the scheme.

Under this scheme, eligible tertiary students could trade in all or part of their YA, Austudy or PES entitlement for twice the amount in the form of a loan. Full-time tertiary students ineligible for YA because of the level of their parent's income and/or family actual means could elect to access an SFSS loan of to up to $2,000 a year as long as their parents' combined income and family actual means were below a certain level. The SFSS was paid fortnightly.

Act reference: SSAct section 1061ZY Eligibility to obtain financial supplement

Policy reference: SS Guide 1.2.1.20 Youth Allowance (YA) - Description, 1.2.2.30 Austudy Payment (Austudy) - Description

Last reviewed: 5 January 2004