3.8.16.20 Payability of Student Start-up Scholarship

Qualification & payability

The student start-up scholarship will be paid in a maximum of 2 half-year instalments in a calendar year. An instalment is payable if the person:

• is qualified for and receives at least the minimum basic rate of YA or Austudy and is studying full-time in an approved scholarship course,
• is expected to commence or continue undertaking the course in the period of 35 days immediately after payment qualification for the student start-up scholarship payment,
• is not likely to receive a Commonwealth Education Costs Scholarship (CECS) in the next 6 months,
• has not qualified for a student start-up scholarship, or similar scholarship payment in the preceding 6 months. This can be shortened to a period of at least 2 months if it allows a person to receive their next instalment around the time they commence their next semester of study, provided they do not receive more than 2 payments in a calendar year.

Similar scholarship payments are:

• ABSTUDY student start-up scholarship,
• DVA student start-up scholarship payment,
• start-up scholarships under the MRCA,
• CECS, provided the person has received the amount or was entitled to it but full entitlement was not received as the scholarship was suspended.

Example: Kathleen lodges a claim for YA which is granted in April 2010. Kathleen is already enrolled in an approved course so receives the first instalment of student start-up scholarship on 20 April 2010. If she continues full-time study in the second semester of 2010, it may be determined that she will be eligible to receive her second instalment in July 2010 even though 6 months has not elapsed since her last payment, because that will allow her to receive her second instalment around the time she commences study in second semester.

Act reference: SSAct Section 592F Qualification for student start-up scholarship payment, section 592G Circumstances in which person is not qualified for student start-up scholarship payment

CECS & student start-up scholarship

A student cannot qualify for a student start-up scholarship if they are likely to receive a CECS in the same period.

If a student has received a student start-up scholarship on the basis that they were not likely to receive a CECS in the next 6 months and they are subsequently made an offer of a CECS for that period that they intend to accept, then the Secretary may review the original decision and find that the student did not qualify for the student start-up scholarship at the qualification time.

Overpayments

If a student is paid an amount of student start-up scholarship to which they were not qualified, or cease to be qualified for, the amount paid will be a recoverable amount and an overpayment may be raised.

Unless exceptional circumstances apply which are beyond the student's control, a student will cease to be qualified for student start-up scholarship if:

• they do not commence full-time study, or
• they started the course but are not undertaking the same course, or another approved scholarship course, as a full-time student at the end of 35 days after the course commences, or
• they were undertaking a course but are not undertaking the same course, or another approved scholarship course, as a full-time student at the end of 35 days after payment qualification.

Where a person has received a CECS and a student start-up scholarship for the same period, the student start-up scholarship would normally be raised as an overpayment, unless the CECS was paid in error.

Act reference: SSAct section 1223ABE Debts in respect of scholarship payments

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Last reviewed: 3 January 2012