University of Alberta students are shocked over the cost of rent for a new on-campus residence, Peter Lougheed Hall.

The new hall will cost students $2051.25 for a one-bedroom dorm, meal plan included and $1926.25 per person for a two bedroom.

“It’s incredibly expensive,” Francesca El Ghossein, VP for Student Life of the Student Union said. “I think that price point is restrictive for a lot of students, if not most students.”

The $40 million facility has features including a dining hall, courtyard and multiple spaces for studying and socializing. University officials said that the rent is determined by the total cost.

“Rental rates are calculated to cover the real costs of operating and constructing the building.” Geoff Rode, acting associate VP of Ancillary Services said.

The Student Union is concerned the rental price between the different residences will cause inequalities in buildings for those who cannot afford to pay more.

Room and board at Lister, an older U of A residence, costs students close to $800 less. A one-bedroom and meal plan prices out to $1,273.25and a two-bedroom $1,008.25 per student.

“Students in other residences are facing problems with different maintenance issues that are not being met,” El Ghossein said. “We’re worried about that.”

Applications for Peter Lougheed Hall just started in February so it is unclear how many students can afford the higher cost of living at the residence come September.

with files from Angela Jung