Should I apply for this student money or will it get me into more debt?

Where I live, a student can apply for one thousand dollars from the govt when studying. It is called ‘course related costs’ and is meant to be used for things that you may need to buy for your course such as textbooks, stationary, a computer etc. Some people buy new cellphones or use it towards a car, some people even just go shopping. Well. Yeah most people go shopping haha. It’s like a loan, you have to pay it back, but it’s interest-free. I am in overdraft right now as I needed an overdraft for bond for my flat. Since I’m a student, the overdraft is also interest-free so that’s a plus but when I do stop studying and if I still have the overdraft I will have to pay interest.

My question is: Should I apply for the 1K course related costs to pay off the overdraft and be able to buy a few things that I need, or should I stick it out struggling to pay back the overdraft and worrying about it everyday?

- I have a student loan of 10,000 $ anyway (it’s probably up to 11 now cause of interest actually….) so another thousand to pay off doesn’t really bother me as I have a plan as to how I’m going to pay it off later.

Another thing I’m thinking about is that I could keep some of the 1k in my savings for emergencies, because it worries me that I now have no savings.

- So, do you think I should apply for it, pay off the overdraft, get the things I kind of need, and have some savings… or don’t get it and worry a bit in overdraft?

Sorry if this is kind of confusing but I’d really appreciate anybody’s views/opinions/help.