Guys!
The situation is not as bad as it seems. There is no reason for you to lose confidence.
Your student visa is valid for 16 months while your course is over in 12 months. There is no rulebook that says you cannot search for jobs while you are studying. In fact, most students start contacting consultancies, career services and employers right at the start of the 2nd term. That means, you have more than 10 months to search for a Job.
The closure of PSW is aimed at stopping the abuse of the policy wherein people come for petty english courses, acquire a PSW visa for 2 years, (obviously do not get highly skilled jobs), and then resort to menial (low-skilled) jobs.....thus affecting the demographic for which these jobs are meant.
During my recent interview, the professor from Kingston University said that people who do their MBA and eventually end up working in UK in highly skilled jobs are the ones who do so within the first 3 months after their MBA. Some people get offers even before completion. Usually the top 60% of the class does that at Kingston. Rest is luck.
Consider the scenario where a person does not get a highly skilled job within 4 months after graduating under PSW scheme: In order to survive and cover living expenses, he/she has to resort to low-skilled jobs (waiting tables, supermarket helpers, etc). And believe me, previously if a student did not get a job offer within one year in UK, it would become terribly difficult to get work even during the second year because employers will look at the student differently. Put simply, it is imperative that students find a job immediately after their course or else it is better to pack bags anyway.
Also, the UKBA has announced that for the students taking up one year courses this year (graduating next year), there will be no Resident Labour Market Test for employers if they wish to employ these students......In my opinion, this is a big advantage. It means that employers no longer need to prefer resident students ( UK and EU) as first choice, and then look at international students if they dont find resident labour for the advertised posts. This wasnt the case before.
So there is no reason to lose confidence. Trust you abilities and go for it. There is a little bit of risk, but hey! isnt that risk in everyting that we do nowadays? Rest is your luck. Do keep in mind that next year UK universities will be increasing their fees two-fold in order to match with the US universities. So, now is the right time..... All the best!