Higher education students from Jersey who study in London will get an extra 10% in maintenance grants.
The increase in financial support is due to the higher cost of living in the capital and brings the island in line with similar policies across England, Wales and Northern Ireland.
It means a student whose parents' combined income is £49,999 would receive around an extra £850 for the 2023-24 academic year.
The amount will be reviewed each year and updated as needed.
Jersey's student finance calculations will also use a sliding scale from September 2023 to make the system fairer by avoiding big differences in funding if someone currently falls near the edge of a payment band.
In practice, a student would receive £1 less in maintenance for approximately every £6 increase in income, up to the £90,000 top support threshold.
"We already offer generous, means- tested, non-repayable maintenance grants," Jersey's Children & Education Minister Deputy Inna Gardiner said.
"But moving to a sliding scale model will mean that fewer students see a sudden drop off in their funding as their incomes rise."
The extra bursaries for those leaving care and going into higher education will also rise by more than £400.