Massey University Council members will vote tomorrow on whether to raise student fees by 10 percent.
Student president Paul Falloon is organising a protest on campus and expects at least 300 people to express their anger at paying more to study.
For a vet student the fee increase would amount to an extra $700 per year, he said.
Mr Falloon said students have resigned themselves to a small increase, but 10 percent was ``certainly unpopular.''
``No increase is sustainable.
``We're just easy targets to fund a government shortfall.''
The Government is increasing its universities' funding next year by 2.8 percent, Mr Falloon says.
``This doesn't even cover inflation.''
Chancellor Nigel Gould defended the increase as necessary to keep the university financially viable.
The university must adhere to Ministry of Education's income guidelines, which stipulates a 3 percent profit is the minimum return.
Massey University was the only institution which failed to achieve this target last year.
``The university has a significant deficit this year,'' Mr Gould said.
He declined to elaborate on how much.
Domestic fees are currently significantly lower than other universities, he said.
``Even if we increased the fees by 10 percent, we will still be below others which have increased their fees by 5 percent.
``A 10 percent increase is misleading.''
Massey is working within rigid constraints for funding students, research grants and the Government, Mr Gould said.
Massey is looking at all areas of its business to find ways to cut costs, Mr Gould said.
Last year, the Tertiary Education Commission (TEC), canned Massey's request to increase fees by 10 percent, but the ever-widening gap between Massey and other institutions may just tip the scales and seal approval this time, he said.
Massey University students face a 10 per cent fee increase if the Tertiary Education Commission (TEC) approves it.
An application was made to the TEC yesterday, after university council members voted for the increase.
University Chancellor Nigel Gould is confident the application will be approved, even though last year the application for the same fee rise was rejected.
He said the university had run out of options for funding.
A 10 per cent rise would raise about $3 million from students, beginning next year. However, the university needs a further $14 million to adhere to Ministry of Education guidelines that say a 3 per cent revenue surplus must be maintained.
Council members voted 9-5 to raise fees, amid a whisper of "shame" from student reps.
Council member Liz Gordon said she is concerned that if the fee rise is successful, it will set a precedent for other institutions to follow.
Another member, Professor Ngatata Love, suggested more staff cuts could help relieve Massey's ailing bank balance.
Prof Love also questioned Massey's asset base and whether any surplus could be sold, such as property in Hawke's Bay bought when there were plans to expand there.
This is expected to be considered at the next council meeting in December.
Mr Gould said Massey, similar to last year, was facing a significant deficit.
That's blamed on a drop in international students.
However, student president Paul Falloon argued it is foolhardy to rely on international student income.
He said it is "irresponsible and unjustified" to expect students to meet a shortfall.
Mr Gould said a student fee increase will only go part way to alleviating Massey's money woes.
Vice-Chancellor Judith Kinnear agreed and said government funding was "pathetically low".
Prof Kinnear said institutions should band together to seek better funding from the Government.
Mr Falloon said some students had reported that the quality of their courses had deteriorated.
But Mr Gould said without a fee increase further investment in IT and refurbishing the university's library would be compromised.
Most councillors were sympathetic to students' concern over increased fees, but agreed an increase was necessary.
If the TEC rejects the 10 percent fee rise, Massey will ask for a 5-percent increase, in keeping with other institutions. Council member Brenda Tipene- Hook said an increase will put extramural study further out of reach for second-chance learners, such as single mothers.
Ms Tipene-Hook said it takes single mums, on average, 15 years longer to pay off their loans.
"This debt just burdens future generations, think, whole tribes."