Students who move from one city to another to attend university will no longer receive relocation scholarships under budget measures passed this week with the support of the Labor opposition.

The move means students who move from cities such as Newcastle, Wollongong, Geelong or the Gold Coast to study at a state capital will be about $6000 worse off over a three-year degree. The scholarships – worth $4145 in the first year of study and $1036 for each subsequent year – will now only be available to those moving to or from rural and regional areas.

"For many students this scholarship payment has made a difference in terms of their ability to move to university and get established": Lee Rhiannon. Credit:Christopher Chan

City students who currently receive the scholarships will lose access next year.

Universities had urged the government to apply the changes only to new students so current recipients do not have to reduce their study loads or increase their amount of paid work.