Shadow education secretary Bridget Phillipson has refused to rule out a taxpayer bailout for failing universities under Labour.
Some universities in the UK are on the brink with 40% expected to be in deficit during this academic year.
Ms Phillipson said the educational institutions “are in crisis” and she is “very concerned” about the state of their finances.
She added: “We do have to tread with real care here because universities right across our country, in our towns and cities, are really important engines of growth and opportunity and jobs. I would want to avoid any disruption happening to young people's education whether if an institution were to run into trouble, that would be the outcome.”
Ms Phillipson told the BBC's Laura Kuenssberg that Labor does not have access to the same Treasury modeling as the Tories when pressed on what her party's plan is.
The BBC journalist called the matter a “question of principle” when Ms Phillipson refused to rule out using taxpayer money.
When it was put to her again, the shadow cabinet minister said: “I don't believe that will be necessary and I think there are measures that can be taken to stabilize the sector that will be a day one priority.”
The Office for Students (OfS) is looking at how to strengthen financial regulation and oversight of the sector, the politician said.
She added: “This is a highly complex area where the modeling on this is difficult and we simply do not have the same level of access to any of the data.
When Ms Kuenssberg asked again whether Labor would allow universities to go under or do “whatever it takes” to keep them afloat, Ms Phillipson said Labor is “determined” to maintain the world leading status of UK universities.
The OfS annual report into the financial health of universities said the sector was over-reliant on cash from foreign students and many will need to make “significant changes” to avoid closure.
The Commons education committee has voiced concerns over whether institutions are overusing overseas students to cover budget shortfalls.