I think Switzerland put some limitations to free movement recently. The EU retaliated by removing access to student programs like ERASMUS for Swiss citizens. A nasty story.
If this is true, it's quite counter-productive. It's in EU interest to send as much people as possible on Erasmus and be pro-EU. Banning will backfire on the long run. I hope some kind of solution for UK students can be forged. Majority of young ppl in UK voted remain, is would be terrible to punish them.