USQ Vice Chancellor Professor Jan Thomas has labelled cuts to university funding as "unAustralian".
Professor Thomas said the cuts would cost USQ at least $3.8 million next year.
The Federal Government announced it would reduce university funding by $900 million over 2014 and 2015.
Professor Thomas said the decision meant many regional and rural students would "never" have the chance to go on to university.
She said the cuts would "significantly erode the ability of regional universities to take full advantage of the student demand-driven system, grow our student numbers, and contribute to lifting higher education participation and attainment in regional Australia".
"What the government has done has given a death sentence to regional communities already struggling with agricultural exports significantly affected by the strong Australian dollar.
"To hit out at regional students many of whom come from some of the country's poorest and most disadvantaged regions is just another body blow," Professor Thomas said.
"The cuts are a significant setback for regional universities and their students,"
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