The post from the OP shows a huge red flag. He states 'I have been a student there for many years'.

It has been rumoured for a while now that foreigners, who use a student visa to stay in china would come under scrutiny.

Not for one moment am I suggesting the OP is taking advantage, but perhaps his school have been put under pressure by the government. It must also be said that Institutions would probably not lose income voluntarily.

As it happens, this last six months has seen Thailand clamping down on exactly the same Ed Visas.

"It has been rumoured for a while now that foreigners, who use a student visa to stay in china would come under scrutiny."

More likely that foreigners who use student visa, while not studying, and stay in China, come under scrutiny.

Right? Without trying to piss anyone off here, it sounds reasonable.

We still don't know which school he's talking about. WTF!

Maybe he is afraid of retaliation, as currently it is only a threat.

First, I am not a language student, I am an undergraduate student. My school is actually a major University here and I am not "taking advantage" of anything or violating my visa terms.
The issue here is that my tuition is quite costly as is (30.000RMB/year) and now the university is changing their deadlines and issuing threats.
My concern is when and if they cancel my visa with the (*) and the 10 days to leave, if I will then be able to get a new Visa in HK and resume my studies in China. So far, one poster said it is impossible and I would need to get a new passport, while another poster was able to get another visa normally, even with the (*) in his passport. I am confused....

Reptilian: Im also confused.
Sponsor? But, as u said before,u paid half of the fee already?What is he sponsoring then? Why they have your passport? What if u want to go home on holidays?

Semester starts March ( Im in Yunnan Da Xue ), so if your school ( which u for some reason dont want to reveal ) starts same time, I dont see any reason to give payment time allowance till April. You are also saying, they changed that. When? Now, during the holidays? So those people who went home for this time they even dont know?

I don't really get it... All universities are closed now because of the winter break, Yunda, Shida, Ligong etc, there are some people on the campuses but offices are not working. So how come they are threatening you now? aren't they all on holidays? as far as I know undergrads, postgrads and so on (NOT Chinese language students) pay tuition once a year in September, why are you paying now?

or maybe there is something that you don't want to tell us? haven't you violated school rules? like for example too many absences, travelling during school term, horribly failed exams. Or you still owe them money that you should have paid in September?

Ok, I will make myself clear: the threat was issued before the holiday. We are also on vacation but I have this dark cloud over my head.

I am not the only one in danger of having their visa cancelled. I have no absences, the issue here is entirely monetary.
Alexez, I have paid last semester already, I wish they would give me at least until April like you said, but now they say if I don't pay next semester until March 1st, they will cancel the Visa.

Some of my classmates indeed have their passports and went back to their home countries, however they are retaining the passports of those who haven't paid in full.

but who pays? u said sponsor. The person who pays for u ( sponsor ) has also your passport? Let him pay for you the 1st March then. I dont really get it sorry. I dont know what kind of school u r in, but I was in Shenzen Uni, now in YunnDa, both of them always have 2 weeks allowance .

Forget about sponsor, I used this term because as a student, it is your university or school who sponsors you residence permit. I pay from my own pocket.