April Sheppeard is achieving high distinctions at university, but when an unexpected study bill hits, or childcare fees are due, it can mean relying on food vouchers to eat.

She counts herself lucky.

Sheppeard, 24, has no family to turn to. After growing up in out-of-home care, she was living in a refuge with a baby when she enrolled in TAFE.

A wraparound service for homeless youth, which found her a place in community housing, and a caseworker offering emergency phone credits, has been vital to her academic success since, she says.

"Housing is my biggest issue," she says.

"I stress too much, because I only want stability for my son. I was struggling heaps with childcare and was behind. I had assignments due."

The support of LaunchPad "has been a weight off my shoulders".

NSW Budget boost

The Baird Government will commit $40 million over four years in next Tuesday's NSW Budget to a new fund to help young people leaving out-of-home-care find housing, education and jobs.

Sheppeard's success - she was awarded the Aboriginal and Torres Strait Islander Student of the Year at South Western Sydney Institute, and won a scholarship to study social work at university - may be replicated on a wider scale if it works.

"Most young people nearing adulthood have safe homes and secure families that help them to transition to independence and adult life," said Premier Mike Baird.

"But for those who don't, the trauma and disadvantage of becoming homeless at an early age can have devastating consequences throughout their lives."

Minister for Family and Community Services Brad Hazzard said young adults aged 19-24 have the highest rate of homelessness, and account for one in four people accessing homelessness services.

"It is so critical that we do what we can to prevent vulnerable youth from ending up on the streets," he said.

Sheppeard is aiming higher, and is confident she will get there. "I want my son to have his own home by the time he is 18," she says.

She describes her upbringing as rough, but it has inspired her to pursue a career in social work.

"I want to be there for other kids. Not just professionally, I want to be there as a friend and showing them the right way. I will be open, so they have someone to talk to."

There was "no one much" for her to talk to as a child.

"Every time I was told to see a counsellor, I shut down completely. Why should I speak to someone like that?"

Eventually, one lady at DOCS broke through.

"She could see how strong-minded I was, and that I took an interest in her work."

When TAFE held its gala dinner last year for award winners, other students attended with their families.

"I didn't have mum and dad," says Sheppeard.

So she asked her support worker to come. "She was proud of me - I know that," she says.

Launch Pad caseworker Angela Buckfield says: "April is a smart girl, so with that extra bit of support, she is going to be a star."

"With her trauma background and chaotic life, she still manages. It is really impressive. She has good, hard solid goals, and I reckon she will achieve them."

Almost two-thirds of young people entering homelessness services have been in out-of-home care, the government said.

The new funding will see $10 million allocated in 2016, to cover more transitional housing, mentoring support and working with Out Of Home Care providers to ensure housing is a priority when young people leave care.