The University of Otago, the biggest financial contributor to the New Zealand Union of Students' Associations, is downgrading its membership.
The students' association has voted to become an associate member of the national body, ahead of withdrawing altogether.
The application to withdraw has been sent, but may take up to a year to take effect.
The president of the students' association at Otago University, Harriet Geoghegan, says its students pay out $90,000 a year to the national body.
She says it is not fair for Otago students to pay for services that they are the least likely to use.
The Otago association will maintain student services by working collectively with others around the country, she says.
