Funding will be provided through the National Development Plan.
The government is to introduce initiatives aimed at fast tracking student accommodation.
The move comes as construction of accommodation for 521 students in Dublin City University and Maynooth University is set to get underway in the coming months.
The new long term policy will include funding for the construction of purpose built accommodation, as well as repurposing of vacant property on college lands to house students.
Funding will be provided through the National Development Plan.