COLLEGES have urged the Scottish Secretary to take action to prevent legitimate institutions being banned from recruiting foreign students.

Scotland's Colleges, which represents college principals, has written to Michael Moore, the Secretary of State for Scotland, after six publicly funded institutions were stripped of their highly trusted sponsor status.

The decision by the UK Border Agency (UKBA) is damaging because, from next month, only colleges with highly trusted status can recruit overseas students – an increasingly lucrative market.

In some cases, it also means students currently enrolled on courses will have to find new courses at different institutions or face deportation.

It is understood some demotions came after inspectors found attendance records were not being properly kept.

Other colleges were downgraded because more than 15% of overseas students had left before the end of their course – a contravention of UKBA rules.

The letter came as new figures showed that up to 50,000 migrants may have used flaws in the student visa system to come to the UK to work last year.

John Henderson, chief executive of Scotland's Colleges, questioned the fairness of the rules for smaller colleges.

He said: "The proportional measures of compliance can mean our members risk losing their status due to circumstances often out with their control."

"Only six have more than 100 international students enrolled, while many of the others have fewer than 50.

"For those colleges, a change in circumstances among a very small number of students, which will arise for entirely legitimate reasons, can then impact on a college's status."

He said the fact colleges could not appeal the decision was "unreasonable", and warned of the impact on some students currently enrolled on courses.

He said: "There has been no fault among the actions of the affected students, who have now less than 60 days to find a new sponsor or face removal, which in the current climate will likely be very challenging.

"We would hope a means could be found to enable these students to complete their current year of study at their college."

He added: "International work is of great importance to our members, though often overlooked as part of the core offering from the college sector.

"Significant time and financial investment is involved in exploring the potential markets and establishing links to the students who could come to Scottish colleges.

"The impact of these decisions creates uncertainty for colleges in knowing they will be able to continue this excellent work; it undermines the confidence of students in their institution and will, if it continues, impact on the perception of Scottish colleges, and Scotland as a whole, as a desirable place to study for the best and brightest."

The row developed after the UKBA sent inspectors into institutions as part of a crackdown on colleges being used as a front for illegal immigration.

The Government agency regularly checks on sponsors of students, and can suspend a college if it finds evidence it is not fulfilling its duties.

The recruitment of overseas students is a lucrative market for further education colleges, with 2500 students currently enrolled in Scotland. Estimates suggest these students bring in £15 million a year in fees, with a value to the wider economy of £30m.

The six downgraded colleges include Anniesland, Stow and Cardonald in Glasgow, and Motherwell in North Lanarkshire.

Meanwhile, figures show up to 50,000 migrants may have used flaws in the student visa system to come to the UK for work.

MPs hit out at the UKBA after the figures were published by the National Audit Office.

The report also said the UKBA did little to ensure foreign students leave the UK when requests to extend their stay are refused.

Margaret Hodge, chairwoman of the Commons Committee of Public Accounts (PAC), said: "The agency has done little to stop students overstaying their visas. And it is worrying the agency does not know how many people with expired student visas are still in the country."

However, the Home Office disputed the figures, saying they were not robust.