However the college said that it made the decision to stop recruiting and was not forced.

From September students from outside Europe will no longer be accepted on level 3 courses – equivalent to A-level and below – at the college, which is spread across five campuses in or around Wolverhampton.

Around 25 students currently study at level 3 equating to more than £150,000 in lost fees.

“The college sends the attendance records of its international students to the Border Agency which earlier this year queried the high levels of truancy,” a source at the college told the Sunday Mercury.

“An internal investigation at the college discovered that there was inadequate systems in place to properly record international students’ attendance accurately and as a result disciplinary measures were taken against some members of staff,” she added. UKBA penalised London Metropolitan University last month over similar record keeping issues.

The agency also told the college that some of its former students had “just disappeared after completing their courses,” added the source.

“The college has made the decision not to recruit new international students”

Despite the critique, a spokesperson for the college said: “The college has made the decision not to recruit new international students (non EU) because the government has made it very clear that they are seeking to reduce the number of international students coming into the UK.

“Also the college has made the decision to focus on home based students to serve the community of Wolverhampton in a time of recession to help local people enhance their skills and gain employment.”

Students who are due to return to complete their studies in September will be allowed to do so. Those taking higher level courses at the college’s Paget Road Site which is run in conjunction with the University of Wolverhampton will not be affected.