Father unhappy with $500 university hostel instalment fee

AUT charges an additional $250 per semester if students pay for their hostel accommodation in fortnightly installments rather than upfront. Photo / RNZ

The man, who has asked not to be named, said AUT's charge was a poor tax.

He said he noticed the $250 per semester fee when he was helping to organise his daughter's hostel booking for 2020.

"It's a poor tax. Anyone who doesn't happen to have a spare $11,000 in the bank to give to the university for advance rent gets hit an extra $500. I think it's inequitable and unfair," he said.

The man said he had not complained to the university directly because he did not want his complaint to have any impact on his daughter's experience at AUT.

He said people from rural areas had little choice about accommodation in university cities and no university should be penalising students for paying their fees in installments.

The university said the fee covered administration costs.

"An additional fee for those wishing to pay by installment is standard practice and covers administration costs. We are not aware of any students struggling because of this, but do provide support to assist students who have any type of financial hardship," it said.

RNZ inquiries indicated some other university hostels also charged students more if they paid their fees in installments, but many did not.