The annual living costs for a young regional person studying away from home are estimated between $15 000 and $20 000, plus relocation and start-up costs of $3 000 to $6 000. Most regional families cannot afford this. It forces regional young people to work very long hours while studying, or families must make significant financial sacrifices, including extreme debt. Financial difficulties are exacerbated by the drought and regional economic vulnerability. 

Many regional young people are ineligible for Youth Allowance due to stringent eligibility criteria. The income and assets thresholds for Dependent Youth Allowance are much too low for regional families, who have higher living costs and additional tertiary study expenses than urban Australians. Further, Centrelink’s definition of ‘Independence’, including the unrealistic age of 25, means that many regional young people are forced to defer their tertiary studies for one to two years to work and earn $18 525 in 18 months, to be eligible as an independent through Workforce Participation. Alternatively, some regional young people work very long hours while studying to financially support themselves and meet the criteria, significantly affecting their educational performance, health and well-being.

Regional young people receiving Youth Allowance experience significant financial stress. Current Youth Allowance rates are estimated at 20 per cent below the poverty line. Even with the maximum amount of income that students can earn before their payment decreases, $236 a fortnight (an amount that has not been indexed since 1993), students with a regional background cannot afford rising living costs. Poor health due to malnutrition was commonly reported.