Australian students are being forced into poverty and are at risk of dropping out of university because of major delays in processing their Centrelink applications.
Most universities close for the mid-year break next month but many students who applied to Centrelink for financial support at the start of the year are yet to receive a payment.
Student advocates say the government welfare agency refuses to provide a timeline for Austudy, Youth Allowance and Abstudy applications, while "huge delays" are leading to a surge in student loans and emergency relief.
"It's across the board," said Stuart Martin, chairman of the national Student Financial Advisers Network. "This is significantly worse than previous years. I've heard cases of [students waiting] even 12 and 14 weeks."
Mr Martin said students were struggling to pay for textbooks, class materials and student fees and in the most serious cases could not afford their rent, food, utilities and travel expenses.
"Most young people are relying on a very small amount of money to come and the response is that they will get back-paid, but that doesn't help you if you're homeless," he said. "For a reasonable amount of students, it means they can't continue their studies."
Mr Martin, who is also a student welfare officer at Victoria University, said there had been a "deliberate breakdown" in Centrelink's communication with universities in recent years, making it difficult for them to advocate for students who met financial hardship provisions.
Universities echoed these concerns, saying they were unable to get claims for distressed students fast-tracked because lines with the agency's processing teams had been cut, and that call wait times had blown out to 90 minutes.
Some institutions have, for the first time this year, recommended students lobby their local MPs about the psychological stress caused by the delays in a bid to put pressure on the government.
RMIT student wellbeing adviser Georgie Larkins said there had been a 300 per cent increase in emergency assistance vouchers provided to students this year.
The university's total Centrelink inquiries from students rocketed 60 per cent to 561 in the first three months of the year.
Ms Larkins said the number of students reporting Centrelink delays as the sole reason for needing food and transport vouchers rose fourfold, and they were also being blamed for a sharp increase in hardship assistance grants of up to $1000.
"Our emergency assistance has skyrocketed," Ms Larkins said. "There are expected delays but it's really out of control this year and it's happening all around Australia."
University of Melbourne psychology student Nadege Hamdad has not received an Austudy payment this year despite applying to Centrelink in February, before starting her course.
The 30-year-old, who relocated from interstate to study, was initially told there would be a maximum six-week wait. However, more than 10 weeks later, she has not been given a firm date.
"They continually say this is due to an unprecedented number of applications and that they are taking one week to process a day's worth of applications," she said.
Ms Hamdad, who does not receive financial assistance from her family, this week applied for a student loan after maxing out her credit card.
She said her studies had suffered because she was forced to increase her work hours in hospitality while juggling her full-time course load.
Had she known about the delay, she said she would have deferred enrolment.
"I only undertook this course knowing that I was eligible for some assistance from Centrelink, which would be subsidised with my part-time job. I feel embarrassed having to ask for money and anxious not knowing when I can expect Centrelink to come through."
A University of Melbourne spokesman said the delays had affected students nationally and staff were helping students write to local members about their concerns.
The Department of Human Services said during peak periods, including the start of the year, student claims could take longer to process, and encouraged people in financial hardship to contact Centrelink.
"Many of those that are still outstanding require further information from the student, and the department has made contact with these people to request the missing details," a spokeswoman said.
"Once their claim is granted, eligible students will be paid for the period they're entitled to, including back payments if necessary."
