A Sydney university is taking seven of its own students to the NSW Supreme Court in a bid to dissolve an independent student association and seize more than half a million dollars in funds.

Macquarie University will seek to forcibly close the postgraduate representative association (MUPRA) and absorb $500,000 in its reserves, according to court documents.

"Many student unions are concerned that this is the tip of the iceberg": Mia Kwok. Credit:Paul Wright

The university has also flagged its intention to claim legal costs against the seven students, all current or past elected members of MUPRA's voluntary executive if it wins the case due to be heard on Thursday and Friday.

The case could set a dangerous precedent for student unions, and ramps up a worrying trend among Australian universities, according to a peak student representative association.