The Federal Government announced funding for 10 new CUC locations on Monday.
While the Deni/Finley application did not make the cut, nearby Hay was among those to receive support.
It was one of only two in NSW to be allocated funding. The other is in Tumut.
The application was coordinated by the CUC - Southern Riverina steering committee, and submitted with the support of the Edward River and Berrigan Shire councils.
It followed another unsuccessful attempt to obtain funding from the same program in 2023/2024.
That original application, which was the culmination of discussions started in 2022, was for a four-way partnership also including Moama and Hay.
CUC - Southern Riverina chair Leanne Small said the result from the most recent application was “disappointing” given the level of support shown for the project.
“We felt we had a high quality application, but obviously, there would have been a large number submitted,” Mrs Small said.
“We had a lot of support from community and industry in both Edward River and Berrigan Shire, including pledges that would have funded 25 per cent of the project for the first four years.
“We will receive feedback from the funding body shortly and will engage with both communities and councils directly about what our next steps should be.”
Mrs Small said those discussions on whether to make another application would include consulting with those who had made financial pledges.
“We only found out about the decision on Monday, so we need to meet and discuss where to go from here,” she said.
“Given the community and industry support, we could also potentially look at other funding options available to us.”
Both councils have indicated they are not willing to give up on a local CUC yet.
They say the establishment of CUC study hubs would not only provide higher education opportunities for youth in the respective councils, encouraging them to stay in the region, but would offer professional development for local workers, enhancing the skills base of the region.
Additionally, the presence of CUC hubs makes regional towns more attractive to skilled professionals, encouraging them to relocate and contribute to the economic growth of the region.
Edward River Council Mayor Ashley Hall expressed his disappointment with the announcement.
“We had a very strong application and enormous industry and community support, but this, unfortunately, was not our moment,” he said.
“We still believe our councils are well positioned to host tertiary education hubs.
“With the pledges we have so far, only a further $1.5 million is required to fund a study hub in both centres for the next four years.”
Berrigan Shire Mayor Julia Cornwell McKean agreed tertiary education opportunities are of primary importance for regional towns.
“CUC study hubs represent tremendous potential for our region, so we will not stop now,” she said.
“We, along with the steering committee, will continue to lobby for study hubs in Finley and Deniliquin to ensure our residents, especially our young people, have access to tertiary education opportunities so they can stay and build their futures here.”
Hay’s CUC will be co-located at its existing TAFE Connected Learning Centre, and is expected to open by the middle of the year.
The centre will allow students in the region to remain connected with family, friends and local employment while undertaking their studies.
In addition to Hay and Tumut, funding was also announced to establish CUCs in the Queendland communities of Hughenden and Clermont/Moranbah, Northam and Kununurra in Western Australia, Kangaroo Island in South Australia, Hamilton in Victoria, St Helens in Tasmania and at Burnt Pine on Norfolk Island.
Once established, it will bring the number of CUCs in Australia to 53.