The High Court has heard how Athlone IT was told not to proceed with a new course in audiology that has been scrapped after just one year.
Two students have taken legal action after the college failed to secure the accreditation needed to allow for placements.
Their legal team claims the Higher Education Authority, which provides funding for such courses, warned AIT not to go ahead with it.
Lawyers for the college have blamed a change in HSE policy for blocking its attempts to meet the required accreditation criteria.
