Off-island students will get an increase of 7.2% on their grants from December to help offset the cost of living crisis.
That means students this academic year will see an overall increase to their grants of 10.1%, following a top-up of 2.9% in September by the previous Education Minister, Deputy Scott Wickenden.
The extra funds are intended to keep up with the UK's rising inflation.
Current Education Minister Deputy Inna Gardiner says university life has changed in the past decade: "There is more competition for courses, an increased focus on employability and now increases in living costs. This means it is only fair that our Student Finance system responds to these changes.
"We provide maintenance grants to support the cost of going to university so that students, including those from lower-income families, receive assistance with costs of further study.
"I know that many students and their families are concerned about the increase in the cost of living and will want reassurance now."
Deputy Gardiner is expected to sign an order in November so that the extra cash is ready by the end of the year.
Around 1,500 students benefit from the island's student finance system.
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