Naomi Long said she has "huge sympathy" for students who lost money after a business advised by an Alliance MLA went bust owing more than £64,000.
The Alliance leader expressed concern over young people being left out of pocket, but stressed her party was not involved in the company for which Patrick Brown was a paid consultant.
She said that "businesses go out of business sadly every day" and the matter was now "in the hands of a liquidator".
