A Sydney beauty college run by a prominent political donor and Order of Australia medal recipient has gone into administration, leaving hundreds of students in the dark and up to 80 staff rocked by dismissal letters on the day before Christmas Eve.

The Australasian College Broadway, which earned more than $10.4 million in taxpayer funded loans last year, went into administration on Friday, according to documents lodged with the Australian Securities and Investments Commission.

Maureen Houssein-Mustafa, who owns Australasian College Broadway. Credit:Ryan Stuart

The college's more than 800 students have yet to be told it is unlikely they will be able to resume their studies at the Ultimo institution after the summer break.

The 22-year-old college is run and owned by Maureen Houssein-Mustafa, a prominent donor to both the Liberal and National parties, who came 29th on the BRW rich list in 2014 after earning more than $40 million.