What happens to students if their university closes – and why protections are ‘inadequate’

UK universities are cutting staff, closing courses and facing deficits in growing numbers. The Office for Students has confirmed that 24 institutions are at risk of insolvency within the next 12 months, and MPs have warned the government has no clear plan to protect students if one collapses.

So what actually happens to you as a student if your university closes, and are current protections enough?

All higher education institutions registered with the Office for Students are required to have a Student Protection Plan, which outlines what would happen in the event of closure, including alternative study options, how students could continue or complete their course, and refund arrangements.

However, the Education Committee found in May 2026 that current Student Protection Plans are “inadequate” and would not provide sufficient protection if a large provider became insolvent, a conclusion the Office for Students itself acknowledged.

The specific risk is what the Education Committee calls a “disorderly exit,” which is when there are no arrangements in place for students after an unplanned closure.

International students face additional risks. Because visa sponsorship is tied directly to the sponsoring institution, a university closure could put their immigration status at risk before they have completed their studies, potentially forcing them to leave the country.

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The Education Committee has called on the government to establish a special regime for insolvent universities, mirroring the existing framework for the further education sector, to ensure an orderly exit that protects students’ ability to complete their degrees.

A Department for Education spokesperson said: “This government is committed to creating a secure future for our world-leading universities so they can deliver for students, taxpayers and the economy.

“We have taken action to put the sector on a secure financial footing, including raising the maximum cap on tuition fees annually and refocusing the Office for Students to support universities’ financial stability.

“Through our ambitious reforms announced in the Post-16 Education and Skills White Paper, we will restore universities as engines of growth, aspiration and opportunity. We will carefully consider the thoughtful recommendations in the committee’s report and respond in due course.”

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