University students struggling to juggle unpaid placements, study and work will get a new allowance under a plan set out in the 2024 Federal Budget. But the cash injection has onerous requirements.

The financial support targets students undertaking mandatory unpaid placements in several health or teaching fields. The full payment is $319.50 a week, but not all will be eligible and it won't come into effect until next year.

Here's what you need to know about the Commonwealth Prac Payment, aimed at helping students who struggle to afford basics like food and housing after sacrificing hours of paid work for their studies.

Find out how the 2024 Federal Budget will impact you by following Yahoo Finance’s coverage here.

Am I eligible for placement poverty payment?

The initiative will be targeted at around 73,000 students facing "placement poverty" during their clinical and professional placement periods.

It will come into effect on July 1 next year, which means students currently struggling will have to endure until then.

RELATED

• $3 billion in HECS-HELP debt to be wiped for millions of Aussies - here's how much you'll save

• Medical student working 6 days a week and struggling with rising costs: ‘It’s exhausting’

• HECS debt indexation 'crisis' impacting millions laid bare as young Aussies put off having kids

The weekly payment is for students studying:

• Nursing

• Teaching

• Midwifery

• Social work

How much is the prac payment?

The payment is $319.50 a week and is only payable during placement periods.

The payment is benchmarked to the single Austudy rate. Students don't need to stress if they are getting other support payments as the new allowance won't be impacted.

The payment is set to be means tested, but the details have not been agreed upon by unions, employers or student groups.

Why do we need prac payments and does the plan go far enough?

Yahoo Finance has spoken to students forced to do unpaid placements who said the hundreds, if not thousands, of lost hours of potential work means they struggle to afford basics like food and housing.

The stipend was a recommendation of the Australian Universities Accord, which reviewed the performance and effectiveness of the higher education system.

Practical placement is a mandatory part of many university degrees, however some are far more intensive than others.

Social workers are expected to do 1,000 hours of full-time unpaid practical placements, while education students need to do at least 80 days.

Both of these fields are included in the relief package, while degrees like occupational therapy, which need 1,000 hours of unpaid work, are not.