GIPPSLAND gap year students who looked set to miss out on Youth Allowance will now be eligible for assistance, after the Federal Government announced changes to its new Youth Allowance rules this week.
The Federal Government has bowed to public pressure and delayed introduction of its new eligibility criteria for six months, meaning current gap year students will now be able to qualify for Youth Allowance.
New criteria to qualify for Youth Allowance was announced in the Federal Budget in March, with criteria to qualify as `independent' one of the biggest changes.
The hours a student had to work during their gap year to qualify as independent were doubled, and the time frame for working lengthened to 18 months.
Local students currently on their gap year were worried the changes would stop them from going to university, but Education Minister Julia Gillard announced on Wednesday those students would be protected.
The decision means students who have taken a gap year and must move to attend university will be entitled to claim independent status for Youth Allowance under the existing system until June 30 next year.
Ms Gillard said she made the decision after meeting with young people at the student round table in Canberra this week.
"This change will mean that students will not be caught up in the transition between the old and new systems,'' she said.
But the change comes at a cost of $150 million, which Ms Gillard said the Government would recoup by putting off changes that would have allowed students to earn more while still receiving Youth Allowance.
For example, students are currently able to earn $236 a fortnight before their Youth Allowance payment is affected.
This will now rise to $400 a fortnight on July 1, 2012.
The change of heart is welcome news for local students who were fearful they wouldn't be able to afford to go to university.
Former Gippsland Grammar student Monique Lawless is currently working in the school's office for her gap year and has deferred a health science degree at Deakin University.
She said she was "ecstatic'' with the news.
"It's the best news I've heard in months,'' she said.
"Finally we've got a decision and finally I've got a direction I can head in.''
Ms Lawless said she wasn't sure what she would have done if the changes weren't made.
"I was considering taking another year off or the other option was my parents were going to try and pay for me and I would have had to pay them back, on top of my (Higher Education Loan Program).''
Gippsland MHR Darren Chester, who has campaigned extensively for the Federal Government to make provision for the current gap year students, said the decision was a victory for students.
But Mr Chester said there was still a need for reform to provide regional students moving away from home for university with more support.
"The Government needs to understand that it costs at least $15,000 more per year for a regional student to relocate and attend university compared to a metropolitan student who has the option of living at home,'' he said.
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