Irish Erasmus students in EU countries on the Government's mandatory hotel quarantine list will have the cost of their stay covered by the State.
The Department of Further and Higher Education says it follows the decision to add further EU countries from Thursday.
Many students had raised concerns they wouldn't be able to afford the cost of a 12-night stay, which is over €1,800.
Junior Higher Education Minister, Niall Collins, says the State will cover the cost for Erasmus students who arrive back over the coming months.
"We have about 500 students studying int he European countries that have recently been added to the mandatory quarantine list.
"It's estimated that this will place a cost of about €1m on the Department of Further and Higher Education, incurring a cost of between €1,800-€2,000."