Training Incentive Allowance and Student Loan
Clients studying while getting a main benefit cannot get a Student Allowance, or Student Loan living costs.
However, some clients who get a Student Loan for course fees and course related costs, may also qualify for Training Incentive Allowance.
Student Loans for course fees
Clients do not have to apply for a Student Loan to cover their course fees, before applying for the Training Incentive Allowance.
It is up to the client to decide how to use their Training Incentive Allowance.
Note if a client has already been granted a Student Loan before they apply for Training Incentive Allowance, they can still use the Training Incentive Allowance to pay for course fees by using it to reduce their Student Loan balance.
Student Loans and course related costs
Students may get a Student Loan lump sum payment for course related costs.
Clients getting a Training Incentive Allowance may get a Student Loan for course related costs (up to $1,000), less any Training Incentive Allowance they got for one-off course related costs. Note this deduction does not include Training Incentive Allowance payments for childcare, transport and disability related costs.
This means that the order in which the client is granted each assistance can affect the maximum amount they can borrow for course related costs through a Student Loan, as in the following situations:
Training Incentive Allowance paid before Student Loan for course related costs
If a client's Student Loan has not been granted when their Training Incentive Allowance is paid, then their Student Loan course related cost payment of $1,000 will be reduced by any Training Incentive Allowance one-off payments for course related costs.
Student Loan course related costs paid before Training Incentive Allowance
If a client's Student Loan is approved and their course related costs of $1,000 is paid before the Training Incentive Allowance is granted, then their Student Loan course related cost entitlement of $1,000 is not reduced by the Training Incentive Allowance they get.
However, Training Incentive Allowance cannot be used to pay for costs that have already been covered.
Part-payment of Student Loan course related costs before Training Incentive Allowance
When only part of a client's Student Loan course related cost entitlement of $1,000 has been paid, before their Training Incentive Allowance is granted, then their remaining Student Loan course related cost entitlement will be reduced by any Training Incentive Allowance one-off payments.
Student Loan eligibility
Student Loan eligibility is limited to a maximum amount of study (generally around 7 or 8 years of full-time study per student).
It is important we explain this to clients to help them understand this, and other parts of the Student Loan Scheme to allow them to make decisions that best suit their circumstances
