The federal government has given $115,500 to Charles Sturt University (CSU) in Dubbo to fund three scholarships.
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They will go to domestic students with federal Member for Parkes Mark Coulton's blessing.
The MP is keen to see more students study at the campus in Tony McGrane Place.
"Our region has a great story to tell and Dubbo is a hugely attractive destination for domestic students," Mr Coulton said.
"Bringing more students to study in this region will be positive for our community, for local businesses and for tourism."
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Mr Coulton said Dubbo was competitive in the education sector and "the same applies for health".
He said the federal government's backing of the planned Western Cancer Centre, an MRI licence for Dubbo Hospital and the University of Sydney's Rural Medical School program signalled "this regional centre is going from strength to strength".
"That's why I have worked alongside the education minister to secure these scholarships for CSU's Dubbo campus," the MP said.
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The $115,500 was provided through the $93.7 million Destination Australia program.
Destination Australia provides scholarships worth $15,000 a year to students who study at a regional university or vocational education provider.
"Our government's Destination Australia program is helping to attract more students to study in regional Australia," Mr Coulton said.
"..we can help by promoting Dubbo as a fantastic study destination because of the lifestyle, lower cost of living and smaller class sizes."
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Students can apply directly to institutions. Successful tertiary education providers can be found at www.education.gov.au/destination-australia.