Chief executive Sarah Taylor said students in the country often had fewer chances to earn money and faced higher costs when studying away from home.

"We would love to see an increase in the rate of Youth Allowance and an extension of the number of people who are eligible to access it," Ms Taylor said. "All the students we assist with grants are working one or two part-time jobs, or sometimes three, to earn money."

Students who can prove they are independent by working full-time for 18 months in a two-year period are eligible to receive a higher Youth Allowance rate of $414 a fortnight.

Rural and remote students, including those in inner-regional Dubbo, are given two "concession" options for proving their independence through employment.

They can earn $22,239 in the first 18 months after leaving high school or work "at least 15 hours each week for at least two years".

Andrew Toole, head of the Dubbo Chamber of Commerce and Industry, said while there was part-time work available for students in Dubbo, securing it for several years would be "substantially more difficult".

"I guess probably the hard thing sometimes from an employer's view is looking at the long-term viability of [taking on a new employee]," he said. "There's a cost involved in turning staff over all the time".

John Walkom, chair of the Regional Development Association Orana Committee, said there was no shortage of work around Dubbo for energetic young people.

"There is an abundance of opportunity for those who work to seek it," he said. "I know there are numerous employers both in retail and the service industries that are looking for people."

Students whose parents earn more than $150,000 a year are ineligible to receive the independent Youth Allowance rate.

Regional students who need to leave home for study may receive a government relocation scholarship that pays $4145 for the first year and smaller amounts over the following years.

But those who have been deemed independent through their work history are ineligible.

The Department of Social Services did not provide a spokesperson to respond publicly to questions.