Yes, but he was moved to a different town to be with Fritz! The university in question was at Frankfurt an der Oder, and Fritz was at Küstrin, some 30 km north! This is why I kept emphasizing in the fic that Fredersdorf was new to town, didn't know all the stories the locals did, etc.

So even if Fredersdorf finds new students (and Küstrin is not a university town, but it does have nobles and well-to-do burghers who might want music lessons) to earn income from, his old students are still going to miss him!