What will happen if a uni is shut down

Hi to everyone reading this post. I have a question in my mind that is what if a private university or a college is declared fake or gets shut down by government, what will happen to the students of that uni or college (especially the final year students). From my college friends I came to know that they will be transferred or migrated to the different colleges in the same year that they were reading in, is this really true? Does anyone here know the answer to this