Shild- Music and problems

After emailing the bands management i was told to send them a finished copy of the film before they would decided if we were allowed to use the music in our project. I explained we are students and the project will not be profited from and only screened with in the university they still said that we had to pay £600 for the rights to the music. After telling the director this i suggested that we go with the one that has copyright free music made for us as it was just better. However she still insisted that the one she wanted to use was the bands song but was not going to pay for the music.  I  said that i would rather use the copyright free one but as that is what she wanted i could not argue against it.  So i have sent her the one she had requested but taken my name as producer away from it as i do not agree with just using the music with out permission. We have agreed that for my portfolio i am allowed to use what ever version of the film i prefer.  So although i am submitting both films to be assessed the one i will use in my show reel will be copyright free.