Protesters have clashed with police on the steps of Victoria's Parliament during a protest against the Federal Government's plan to deregulate student fees.

Almost 2,000 people marched from Melbourne's State Library to the Parliament on Spring Street chanting, "No ifs, no buts, no education cuts".

As crowds were leaving Parliament, a group of about 20 students took over the intersection of Bourke and Spring streets.

Protesters scuffled with police as they dragged the group off the road and one girl was pushed to the ground.

At least 13 people were arrested; they are expected to be charged on summons with blocking a roadway.

Michael Deurwaarder, who studies arts at La Trobe University, said he joined the rally because he thought the budget was threatening higher education.

"It'll lead to a more US-style system, and that's definitely a bad idea, because they've got one of the worst systems in the world," he said.

Chloe Fuller, who studies arts at Monash University, said the Federal Government's proposed changes to youth allowance would hurt her peers.

"They're essentially going to be starving because - what are they going to do?" she said.

Pensioners say budget cuts will drive them closer to poverty line

Earlier today, several hundred pensioners also rallied in Melbourne to protest against the Government's budget cuts.

The Fair Go For Pensioners Coalition organised the rally at the State Library to highlight the plight of vulnerable people affected by the budget changes.

The Government plans to index the pension to the consumer price index (CPI), rather than to average male earnings.

Protest organiser Roger Wilson said the $7 co-payment to see a doctor and cuts to pensioner concessions would also hit people hard.

"I think this drives most pensioner recipients closer to the poverty line," he said.

Organisers estimate up to 800 people have joined the protest, the biggest turnout of its type in seven years, and that underlines the anger and disappointment felt by pensioners.