The principal of a Northern Territory boarding school says he fears for the future of Indigenous education after changes to federal funding for Indigenous boarding students.

Kormilda College principal David Shinkfield says the Darwin school was forced to close a section of its boarding facilities in 2011 because of funding cuts.

In 2009, changes to the school's federal funding for Indigenous students saw it lose about $650,000 a year.

Mr Shinkfield says about 860 students are enrolled at the school and, of those, 220 are boarders.

All but four of the boarders are Indigenous and are affected by the cuts to funding.

The school's board is now reviewing the rest of its boarding facilities to see if it can operate beyond this year.

Mr Shinkfield says the college is one of the largest providers of education for Indigenous students in northern Australia.

He says that without the boarding facility, hundreds of students from remote areas would be disadvantaged.

He says he has spoken to Federal Education Minister Peter Garrett about his concerns.

In a written response, Mr Garrett's office says the department does not believe the school is being disadvantaged by the funding changes.

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