In this month's budget, the Federal Government announced changes to the youth allowance qualifying criteria. From next January, students will have to work 30 hours a week for 18 months to qualify for the youth allowance under the workforce participation criteria. Under the previous arrangement, students had to earn $19,000 within 18 months to qualify.

The changes will mean students who deferred their degrees in 2009 to earn the $19,000 will have to decide whether they can afford to go to university. Because most universities, including Monash University, only allow students to defer their degrees for one year, students will either have to struggle on low incomes, juggle 30 hours' work with their study or drop out altogether.

Monash Student Association president Julian Campbell slammed the Government for introducing the change so soon.

"The Government should at least delay it until 2011.

"Those who are working now will be seriously considering staying in the workforce because they simply can't afford to study. That's a huge loss for them, but also a huge loss for our nation that misses out on their skills advancing our society."

Mr Campbell said some students would probably try to work 30 hours a week while they studied, which he described as "a real recipe for failure".

He said students from low-income families that were not poor enough to be eligible for income support would simply not be able to go to university.

Opposition spokesman for tertiary education Peter Hall said that with rising unemployment, full-time work would be harder to get and an 18-month gap period would make it more difficult for young people to return to study.

Chisholm federal MP Anna Burke said last year's Bradley review of Australian higher education found current income-support arrangements were poorly targeted with not all support going to those most in need.