A NEW education initiative with the potential to boost the lives of Indigenous students at Dubbo is in jeopardy because the federal government has not signed off on funding.

Dubbo College was encouraged to come up with a new mentoring and scholarship concept after the Dubbo component of the Australia-wide Indigenous Youth Leadership Program (IYLP) was axed last year.

Teachers, students, parents, education groups and community members lodged protests with the federal government and asked for continued support for a program that had assisted more than 150 Dubbo students since 2009.

Attempts to reverse the government decision failed but Dubbo College was able to secure a reduced amount of money to allow existing senior students to complete the final year of IYLP in 2016.

Dubbo College Senior Campus principal Andrew Jones said IYLP had helped students develop as leaders and achieve success in tertiary education and the workforce.

The most recent IYLP graduates included 2015 school captain Michael Jeffery who was named Dubbo's Young Citizen of the Year on Australia Day and Nathan Bryon who received assistance to travel to America to participate in a Washington State Opera training program last year. Mr Bryon will begin studying at Sydney Conservatorium of Music next month.

Mr Jones was pleased when the Office of Prime Minister and Cabinet encouraged Dubbo College to develop a new Indigenous education program.

"We believed the reworked program named Marambang (Wiradjuri for really good or really well) can make an enormous difference," he said.

"A submission was lodged in August but nothing has been heard from Canberra.

"I am very concerned about where the program is going and what can be put in place when the reduced IYLP funding allocation ceases at the end of the school year."

Member for Parkes Mark Coulton said the Dubbo College submission had his support and the support of the Dubbo Office of Prime Minister and Cabinet.

"I too am waiting for a call from the minister's office," Mr Coulton said.

"I am told the Dubbo College submission is still going through an assessment process."

Mr Coulton said it was important for the government to direct funds to programs to help alleviate Aboriginal disadvantage.

"Speaking nationally and generally, some programs work and some don't," he said.

"Large sums of money cannot be ticked off for programs without a thorough assessment."