The National Union of Students has expressed its anger at the problems for overseas students at the university and warned of a "potentially catastrophic" threat to the international appeal of the UK's higher education sector.
There have been calls from MPs for a rethink on the removal of existing overseas students from London Metropolitan University.
As well as preventing the university from recruiting new overseas students, it will also mean that about 2, 600 existing overseas students will have to leave and find an alternative place.
Jeremy Corbyn called on the immigration minister to allow overseas students already studying at the university to complete their degrees.
There have been warnings about the impact of the high-profile case of London Metropolitan University being barred from recruiting overseas students - and concerns about difficulties over student visas.
The Home Office's recent decision to strip London Metropolitan University of its right to sponsor overseas students has prompted concerns among MPs about how students are treated within the immigration system.
The UK remains second only to the United States in terms of the strength of its university system and we attract more overseas students than almost any other country in the world.
The UK Border Agency had found students at the university without any right to remain in the UK, some without adequate English language skills and claimed that the university was failing to monitor the attendance of overseas students.
Educators feared that all courses below university level might be ruled off limits to overseas students, even though between 40% and 50% of foreigners at British universities had taken an earlier course in Britain, usually to hone language or study skills.
The UK Border Agency said it took the action because the university was not making proper checks on its overseas students - that it did not keep records of whether they had the required standard of English to be given a student visa or whether they were attending lectures.
And he warned that the loss of income from overseas students "throws into jeopardy the future of the university".
In September, the courts gave the university a partial reprieve, allowing it to teach existing overseas students until the end of the academic year.
But he emphasised the necessity to implement the immigration rules - telling MPs that the university had "significant systemic problems" in its recruitment of overseas students.
Last week, London Metropolitan University became the first university in the UK to be stripped of the right to sponsor overseas students.
University leaders and the chairs of five parliamentary select committees have called for overseas students to be removed from such targets, raising concerns that legitimate students could be deterred from applying to UK universities.
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