A PRIVATE college in Croydon "supplied misleading information" that led students to wrongly gain access to publicly-funded loans.
The Department for Business Innovation and Skills (BIS) said it had never designated ICE Academy's Norbury campus in London Road as being able to access Student Loans Company Funding (SLC).
As a result the company has closed the college, based in Windsor House, as well as campuses in Manchester and Bedford whose students were also incorrectly given student loans.
"Students at these campuses have never been eligible for student support," BIS said in a statement today (Thursday).
"ICE should not have advertised placed on these courses as being eligible for support.
"These students will not receive any further payments and fee loans paid to the College on their behalf will be recovered by the SLC."
BIS said that ICE Academy has admitted it had supplied "misleading information" to the SLC about where some of its students were studying.
"They provided details that led the SLC to believe that around 400 students studying at Manchester, Bedford and Croydon were at campuses where courses were designated for student support."
The department said it hoped ICE would help students either continue their studies at the company's other campuses, which do not have public funding, or find a suitable course with another provider.
It said it would decide whether to continue to fund the education of students on a case by case basis.
ICE has been informed that if it goes beyond its designations or knowingly misleads the SLC in the future, BIS may decide to "withdraw some or all of their designations".
ICE Academy describes itself as a college for higher education and professional studies, offering a range of BTEC HND courses in subjects such as business management, travel & tourism and creative media production.
On its website the company says students have the opportunity for "industrial placements" and some have had the chance to go to La Coruna in Spain.
In a statement, ICE Academy owner Walter Parrish confirmed the Norbury campus had closed.
"Recent action by BIS and SLC to terminate student funding and tuition fees has led to the stoppage and subsequent close of Bedford, Croydon and Manchester campuses and they have therefore stopped all operations," he said.
"Many students, their families and local communities have been severely affected by this action and we are trying to find a way forward for students and would ask everyone to help.
"We are obviously very disappointed with the BIS action, which has led us to take the necessary action in closing the centres which has been communicated to all those affected."
Mr Parrish said students had the option to transfer to another college, withdraw as a student or "choose to complete your first year".
The company also has campuses in Leicester, Smethwick and Peterborough.Did you study at ICE Academy in Croydon? Contact the Advertiser on gareth.davies@croydonadvertiser.co.uk
