The scheme, which involves paying £30 a year in exchange for 33% off rail travel, is expected to operate in a similar way to the young person's railcard for those aged 16 to 25.
Although the age limit increase could benefit about 4.5 million people, it will still not be possible to get a discount on season tickets - with costs often running into many thousands of pounds a year.
Some of those who would be eligible for the new railcard have told Sky News they would welcome extra savings nonetheless.
"It'll give me a bit more disposable income," said Lauren Gray, 27, adding that it would help her save for a mortgage.
Anani Thomas, 21, likes the idea of the discount he currently enjoys continuing for longer.
He said: "I think I'm spending roughly £50 a week on travel, just to get to and from uni. So I think something like that would definitely be beneficial to the students and younger people."