Around 20% more regional students are receiving Youth Allowance to attend university following government reforms, figures from the Education Department show.
Analysis from the Department of Education, Employment and Workplace Relations shows 4,250 more inner regional students received income support over the last 12 months.
The number of outer regional and remote students receiving youth allowance rose by 2,150, a 27% rise, the report said.
Labor said the rise validates the controversial reforms to the system introduced after a 2008 review that found financial assistance was too often focused on students from already high income families.
Minister for Tertiary Education, Senator Chris Evans, said: "The latest analysis confirms the Gillard Government’s reforms are delivering more support than ever before to help regional students go to university."
Regional university students receiving Youth Allowance are now paid a Start-up Scholarship, worth $2,194 in 2011.
Dependent students who move away from home to study typically receive more than $6,000 during a three year degree to assist with relocation costs.
At the time, the Coalition raised concerns that the reforms, which made a distinction between 'inner' and 'outer' regional areas, would make it more difficult for inner regional students to claim the benefits.
Senator Evans added: "The Government remains committed to removing regional eligibility distinctions for Youth Allowance from 1 January next year and continuing to support regional students."
A full review of the changes, headed by Melbourne University Vice Chancellor Kwong Lee Dow, is currently underway. The committee is expected to report to the government on July 1.