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The Finance Ministry is nearing a compromise on the guaranteed income allowances for married ultra-Orthodox yeshiva students with three or more children. The two-year budget for 2011-2012 included a section to get around the High Court of Justice's ruling against the allowances for discriminating against university students.

The compromise will most likely include two parts, granting students with children the same allowances and making the criteria stricter.

The idea is to find ways to encourage yeshiva students to join the workforce. One possibility is limiting the allowance to a certain number of years. The second is to no longer require full-time study at a yeshiva to receive the grant, but to provide it also to those who leave yeshiva to study nonreligious subjects or learn a profession

The government might also continue to pay the allowance for a limited time even after yeshiva students find work. The idea is to encourage them to leave the yeshiva and find a job, without harming their income.

Since almost no nonreligious students will meet the criteria of having at least three children and a family income under NIS 1,200 a month, the treasury is considering granting poor students scholarships instead via the educational institutions.