Otago Polytechnic course fees for domestic students will rise by an average of 3.8% next year, despite a push by some polytechnic council members for a smaller or nil increase.
At the council meeting on Thursday, student representative Meegan Cloughley called for a fees freeze, saying 43 of the 50 students she had surveyed believed they were not getting value for money for their current course fees, which averaged $3800 a year.
Students who had paid $4719 for a one-year certificate course described their fees as a "rip-off", she said.
"If students are feeling so disheartened by their courses, what sort of impact does that have within the community? Will they be encouraging their family and friends to study here?"
The students' reactions were nothing to do with the quality of the education they were receiving, Miss Cloughley said.
Instead, they felt spending so much money to obtain a certificate, diploma or degree was not worth it.
"They can't see the point of spending $15,000 or $16,000 getting a degree and coming out the other end to a $20,000-a-year job."
There was a perception that university education was worth it because university graduates were able to obtain higher-paid positions.
Miss Cloughley's motion that fees be held at 2008 levels was seconded by academic staff representative Dale Parsons, but theirs were the only voices in favour when the vote was put.
A second proposal by Ms Parsons to increase fees by an average of 2.4% was also lost 3-9.
The institution was in a "challenging financial situation", chief operating officer Philip Cullen said.
A small surplus was budgeted this year.
Speaking after the meeting, he said the surplus would be about $700,000.
That was only because of a one-off income payment.
"In real terms, we are only breaking even."
There was little option but to raise fees by the maximum allowed by the Tertiary Education Commission - up to 5% for some fees and an average of 3.8%, Mr Cullen said at the meeting.
The increase was expected to bring in an additional $407,665.
Several members said they would reluctantly support higher fees.
Dr Malcolm Macpherson said the meeting felt like Groundhog Day (a movie where the same day is repeated), as for years the council had had the same discussions about financial pressures and the need for fee increases.
"I look forward to the day we can support a zero percent increase, but we are not there yet. I am being dragged kicking and screaming towards supporting the 5% increase."
The motion to increase fees by the maximum allowed was passed 9-3.
Staff had recommended a nil increase in international student fees to ensure Otago Polytechnic remained competitive enough to attract students.
Otago's international student numbers mirrored the national trend and had dropped 46.3% in the past five years, from 231 in 2004 to 124 last month, marketing, communications and customer relations general manager Mike Waddell said.
However, at Thursday's meeting, Mr Waddell recommended Otago's international fees increase by 3.5%.
That was because of the declining New Zealand dollar, and indications other New Zealand institutions planned to increase their international fees by 4% to 9%, he said.
Miss Cloughley asked for the item to be held over until the September meeting, saying she had not been aware of the new recommendation and had not had time to discuss it with students.
Her request was granted.