A cabinet meeting, chaired by Chief Minister Pinarayi Vijayan,decided to give the financial aid to the family of the 18-year-old youth, a computer science student of the private Nehru College of Engineering at Pambady in Thrissur district.
He was found hanging in the hostel bathroom last week.
"The state cabinet decided to allow Rs 10 lakh as financial aid to the family of Jishnu," an official statement said here.
Protest marches taken out by various student outfits over the issue turned violent recently as a section of them went on a rampage in the college campus, damaging properties.
Taking a serious view of the student's death Kerala state Human Rights Commission had sought a report on the matter yesterday.
On other cabinet decisions, the release said 400 new posts of police constable drivers would be created in the home department.