What should I do if my institution is closing?

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Most students complete their studies in the UK as normal, with no issues around their visa or Tier 4 sponsorship.  However, occasionally a Tier 4 sponsor may have a problem with its licence to sponsor international students.  If a Tier 4 sponsor has its licence revoked, this will affect students currently studying in the UK under their sponsorship.
An institution that has a problem with its Tier 4 licence, or that has other business or operational problems, may close.  This will affect the Tier 4 visa of any current students.
Next Step:
This explains your options if you stop studying at your sponsor institution, either because your leave has been curtailed, or because the college has closed, or because you have chosen to stop studying there while they have a problem with their Tier 4 licence. It is very important that the Home Office has your current UK address otherwise important letters may not reach you; see our information about reporting a change of address to the Home Office.
If your leave has already been curtailed with immediate effect (not curtailed to 60 days), if you used deception or false documents in a previous application, or if you have breached your immigration conditions, this information does not apply to you. You should seek immigration legal advice before making any new application.
If you choose to leave the UK rather than moving to a new Tier 4 sponsor, do this before the end date of your current leave. If the leave has been curtailed (shortened) to 60 days, your curtailment letter from the Home Office will give the new end date. If your leave has not, or not yet, been curtailed, the end date is as printed on your vignette or Biometric Residence Permit.
Once your leave has been curtailed it will lapse when you leave the UK. Therefore you must not leave the UK and try to re-enter using the same visa once your leave has been curtailed. Instead you should apply for a new visa before you return to the UK. Likewise, even if you have not yet been informed by the Home Office that your leave has been curtailed at the point at which you leave the UK, you should not try to re-enter the UK using leave that is due to be curtailed.
It is important to understand what having your leave curtailed to 60 days means, and does not mean:
  • If your sponsor has closed or lost its licence, this does not in itself mean that you have breached your Tier 4 immigration conditions or committed any immigration offence
  • Having been sponsored in the past by an institution that has closed or lost its licence is not a breach of your conditions or an immigration offence  
  • You are not being formally removed or deported from the UK.
  • Having your leave curtailed does not in itself have any repercussions for future UK immigration applications.
This explains the options for those who wish to stay in the UK and switch to another Tier 4 sponsor. You do not have to wait to receive a curtailment letter from the Home Office before you make arrangements to switch to another Tier 4 sponsor. If your new Tier 4 sponsor wants more information regarding your situation (including whether your leave has been or is going to be curtailed) then you should give them your permission to make enquiries with the Home Office.
Source :http://www.ukcisa.org.uk/Information–Advice/Visas-and-Immigration/What-should-I-do-if-my-institution-is-closing#layer-3927

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