The Australian Greens welcome the agreement over Youth Allowance, but warn that it does not resolve the wider question of student income support in Australia.

Senator Sarah Hanson-Young, Greens Education spokesperson, says that she is happy that scholarships, while reduced, will be available for students from April 1, but has declared that the Greens are committed to run a campaign for equal treatment and support for all students up to the next election.

"We're glad that this legislation is going through, rather than being blocked all the way to an election, a result that would have hurt many more students and their families,'' Senator Hanson-Young said.

"However this is a compromise which does not deliver the support that all students need when they are trying to access university.

"In particular, many regional students who desperately want to improve their education are not going to receive support despite being forced to move out of home.

"The bottom line is that young people should not be forced to delay their studies to qualify for the support they need, regardless whether they live in a regional city or town, a remote Outback area or have to move from one city to another to access university. The Greens will continue to fight for that outcome.''

Under the proposed agreement, the former participation criteria would still apply to those in remote, very remote and outer regional areas, allowing them to qualify for the independent rate of Youth Allowance.

However many students in regional centres or non-outer regional areas will not benefit from the agreement.

"Sadly, the delays in reaching this resolution have meant that some students in regional areas have had to enrol in the hope of an agreement, while others have not enrolled because of the lack of certainty,'' Senator Hanson-Young said.

"Let's hope that these sort of delays are the exception, rather than the rule for controversial pieces of legislation in this election year.''