Victoria University is offering free accommodation to students it forced to move into shared rooms at the last minute.
A leaked email sent to several students by Katharine Jermyn Hall revealed students who had signed up - and paid for - private rooms would have to share rooms with bunk beds.
The email said the students, who are due to move into the hall on Sunday, would be offered a discounted rate of $220 per week.
When a single room became available, the hall said students would receive the discounted rate for a further four weeks "as a thanks from us". A private single room cost $359.
However, the university has now said the students will receive free accommodation until a single room is available.