The University of Cambridge's veterinary school has been accused of overlooking racism and student welfare.
The course has had its professional accreditation downgraded following an investigation by the Royal College of Veterinary Surgeons (RCVS).
It found the course failed to meet 50 out of 77 accreditation standards.
The university said it would immediately bring in external experts to address the issues raised.
Staff told investigators that students needed to "man up" on work placements instead of reporting issues, the RCVS's report found.
When students from black, Asian and ethnic minority groups experienced discrimination on placement, the locations remained on the department's database, it added.
The course is the highest-ranked veterinary school in the UK, according to the Complete University Guide.
It already had full accreditation, but now has only conditional accreditation.
If adequate improvement is not made by September, the RCVS says graduates will not be awarded their licence to practise veterinary medicine.
Instead, after six years of studying, they would have to complete the same exam as overseas students.
"The main concern is that it's going to make the school look bad and make getting jobs harder," a fifth-year student told PA Media, speaking anonymously.
"We're just as competent as everyone else but this news makes it seem like the vet school isn't as good."
An RCVS spokesman said its committee members "firmly agreed" they needed to continue supporting existing students and future applicants to the school.
Head of department in veterinary medicine, Prof Mark Holmes, and acting head of school of biological sciences, Prof Jon Simons, said in a joint statement: "To address the serious issues raised, the university will immediately bring in external expertise.
"We will do everything we can reasonably do to support students to complete their course and receive full accreditation."