Strengthening public transport links in the Shannonside Region will be a key part in making more accommodation available for students.
Higher Education Minister Simon Harris has confirmed that his department is working to with Transport Infrastructure Ireland and Local Link among other providers to improve local routes.
Minister Harris believes improving public transport will see towns and villages that neighbour third level institutions, become a viable option for finding student housing.
Meanwhile, Cabinet has signed off on changes to the Rent a room scheme, increasing tax free earnings for those letting out a room to €14,000 a year.
The amendments to the plan will also see the earnings disregarded when it comes to being assessed for a medical card.
The Higher Education Minister says that local towns will benefit from the move as well as students seeking accommodation.