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Youth Allowance for Students Who Need it Most

It is easy for students from affluent backgrounds to qualify in private schools or meet student resources, conversely students from modest backgrounds finds it rather difficult. And students who have to leave home for school are at a disadvantage point as they have to put off their studies to take a year off in order to earn money to qualify for Youth Allowance where unfortunately many have not returned for a continuing education. In this regard the Australian Government has proposed youth allowance reforms as student aids of more than 100,000. It is in contrast to the Pyne Plan which punishes students from cutting scholarships and takes almost $700 million from the student income support for over four years. It effectively takes $50 a fortnight from over 140,000 students each year at the university.

The existing system shows that around 20 percent of independent students who live at home come from families whose income range from $150,000, $200,000 and $300,000. The recent broken system has seen rural and regional participation decline through the years 2002-2007. The low income of parents has forced students to claim independence from their families and obtain a gap year virtually. Higher officials should target student assistance to students who need it most. The Government of Australia proposed changes that would look into:

  • The Youth Allowance that all university students received, both from AUSTUDY or ABSTUDY, will receive a $2,254 Start-Up Scholarship every year intended for those who are not receiving Commonwealth scholarship.

  • Families with two children who are studying away from home will have parental incomes raised, thereby will now earn more than $140,000 before cutting their allowance completely.

  • Youth Allowance for students who need to move out to study may be qualified for an added Relocation Scholarship on top of the Start-Up Scholarship worth $4,000 during the first year and $1,000 each for the subsequent years.

  • Students will be able to earn $400 a week without reducing their payments from July 1, 2012.

  • By 2012, 25-22 years will be reduced from the age of independence. It will see an independent rate of allowance to approximately 7,600 new recipients. It’s all good!

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