The Federal Government yesterday welcomed an agreement with the Opposition that means students in remote and outer regional areas will be eligible for the benefit under the existing independence test.

However, Ballarat students are classed as "inner regional'' and will therefore have to meet the new criteria.

Instead of working up to 15 hours a week over two years or earning almost $20,000 in 18 months to be classed as independent, they will be required to work an average of 30 hours over 18 months to qualify.

The University of Ballarat yesterday welcomed the new legislation, in particular a $20 million funding package for regional students, but concerns have been raised about eligibility requirements.

The university's Student Support and Services vice-president Darren Holland said students in Ballarat, Stawell, Ararat and Maryborough would have to meet the same requirements as students in Sydney and Melbourne to access youth

allowance.

He said there was often greater youth unemployment and disadvantage in country areas making it harder for these students to qualify.

Pro-Vice-Chancellor Professor Anne Cummins of the Australian Catholic University said she was pleased to see legislation passed that would give students access to scholarships and clarity about eligibility requirements.

But Professor Cummins said it was disappointing that students from regional areas such as Ballarat and Bendigo would face more restrictions on their eligibility.

Ballarat MHR Catherine King said more students in Ballarat would qualify for youth allowance under the revised parental income arrangements.

"These students will now also be eligible for start-up scholarships and if relocating for university, relocation scholarships,'' she said.

"This provides certainty and improved income support for rural and regional university students."

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