Students booked to live in two blocks of flats have been told they cannot go there, weeks before the new term, following concerns about fire safety.
Work to increase safety measures at Liberty Heights, in Wolverhampton, was expected to go into the new academic year, owner Liberty Living said.
The University of Wolverhampton said it had sufficient space to accommodate all affected students.
Liberty Living would not confirm how many people had paid to book a flat.
Cladding on the two affected blocks is a type of aluminium composite material that may be flammable, Wolverhampton North East Labour MP Emma Reynolds has said.
In July, Liberty Living said 70 students were being moved from blocks B and C, the two smaller towers, as a "precautionary measure".
In a letter emailed to students dated 1 August, the company apologised and said it was working with the university.
"Rest assured that we will do everything that we can to minimise any inconvenience," the letter said.
A 21-year-old student, who was about to live at Liberty Heights for a third academic year, said she was "absolutely devastated".
The student, who did not want to be named, said she might be split up from friends.
She said: "The campus, it looks [like] a prison. I know people who've stayed there and who disliked it.
"To pay the same amount as I'm paying now [about £87 per week] on the university campus, it's not worth it."
The university said it had more than 1,300 rooms across its campuses and it was working to find alternative rooms for students in its own accommodation.
It said Liberty Living, which manages and owns the blocks, had no connection to the university.
The university said it had conducted "rigorous" checks on all university-owned residences and none had been identified as being a fire risk.