Otago Polytechnic Students' Association (OPSA) president Meegan Cloughley wants the organisation to withdraw from its national parent body, the New Zealand Union of Students' Associations (NZUSA) and has the support of her executive.
Students will vote in an email referendum next week.
Ms Cloughley told the lunchtime forum NZUSA did not provide value for money for OPSA's $31,000 annual expenditure on levies and meeting attendance costs, needed to improve its financial accountability, and should spend more on proactive campaigns on student issues.
She was also frustrated by the lack of communication from the NZUSA, and its slowness in responding to requests for financial information or explanations about budget overruns.
"I honestly believe [pulling out] is in the best interests of Otago Polytechnic students."
Among the visitors were NZUSA co-president David Do, of Wellington, NZUSA finance committee chairman Max Hardy, of Wellington, former OPSA president Rachel Dibble, of Dunedin, and Otago University Students Association (OUSA) president Harriet Geoghegan.
The out-of-town speakers and Ms Dibble urged students to stay with NZUSA.
NZUSA was a strong national voice for students, Mr Do said, "but we can only continue to be that if we stick together".
He acknowledged the organisation had had some administrative, accounting and communications issues, but said those were being worked on.
"We're not perfect, but we're on our way."
Ms Dibble said the referendum was about "the future, not the today".
It cost students about $4 each to be part of NZUSA and that was money well spent.
Ms Geoghegan said OUSA also had concerns about whether being part of NZUSA was value for money and was considering withdrawing.
OUSA paid more than $90,000 in levies annually, money which she said could better be spent on providing student services on campus.
OPSA members "should listen really carefully to what your own executive is telling you", she said.