University chiefs want the federal government to provide scholarships and other special support for regional universities as it seeks to deregulate the sector.
A bill to deregulate university fees, raise interest rates on student debt and cut per-student funding has passed the lower house and is set to be debated in the Senate in October.
Education Minister Christopher Pyne is being lobbied by senators representing states with regional universities to ease the pressure of the changes.
Adding to the push, the Regional Universities Network and Group of Eight said on Monday the laws should be made fairer for regional students.
A higher interest rate on student debts would badly impact on low-income earners, particularly women.
RUN chairman Peter Lee said while the student fee changes would help universities, extra support was needed for regional universities as they adjusted to the new system.
"Targeted support for regional universities will help a diverse and competitive market to develop, and support these institutions to offer attractive options to students," Professor Lee said.
Group of Eight chairman Ian Young said the bigger universities recognised regional universities faced problems in raising revenue and delivering services and were happy to forgo some funding to help smaller universities.
Labor frontbencher Kim Carr said the renewed lobbying effort was an "admission of the inequality" at the heart of the plan.
"Now that his strongest supporters have recognised that regional universities would be seriously disadvantaged by letting it rip on deregulation, Mr Pyne needs to admit it is time to go back to the drawing board," Senator Carr said.
Mr Pyne said he was open to negotiations with Labor or the crossbench to pass the legislation.
"I will consider any proposal that is put to me ... but fundamentally the universities are united in supporting and believing these reforms should be passed and I agree with them," he said.
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