Accommodation scholarships totalling $48,000 will be given out next month to five first-year diploma students at the Wanganui Glass School.
Mayor Annette Main said the Mayoral Accommodation Scholarships were to encourage people to come to Wanganui to study.
"Because our glass school is unique with its diploma in glass design and production ... it was just right to get on board with UCOL and assist students."
It has also meant that the chance to study glass in Wanganui has become more attractive.
UCOL communications director Christine Beech said eight first-year students had enrolled for the diploma course which starts next month.
Six were from throughout New Zealand, the others from Columbia and Malaysia.
The day after the students arrived there would be a ballot by the mayor for the scholarships, she said.
All new first-year glass diploma students were eligible for one of five individual rooms situated in one of UCOL's student flats in Wicksteed St.
The accommodation is self-contained, with individual private bedrooms and shared lounge/dining/kitchen facilities and bathroom amenities. The flat also includes a laundry, Ms Beech says.
They are close to the Wanganui Glass School at UCOL's Quay School of the Arts campus and only a short walk to the main retail area of town. Each of the five scholarships is valued at $120 a week and lasts throughout the recipients' 2012 study in the programme, Ms Beech says.
Ms Main said the costs of tertiary study and living away from home could be a significant barrier to study.
"So the accommodation scholarship initiative is one way of encouraging people to give it a go by reducing their financial pressures in the first year of study."
Glass art, design and production were an established feature of Wanganui's artistic and cultural scene and their development was important to the local economy, she said.
Wanganui was the only place in New Zealand where you could study hot glass techniques like this so it was a very specialised course.
"And I know they will have a fantastic time living and studying here," Ms Main said.