Figure of speech used around university group (6)
I believe the answer is:
troupe
'group' is the definition.
(troupe is a kind of group)
'figure of speech used around university' is the wordplay.
'figure of speech' becomes 'trope' ('trope' can be a synonym of 'figure of speech').
'used around' means one lot of letters goes inside another.
'university' becomes 'u'.
'trope' going around 'u' is 'TROUPE'.
(Other definitions for troupe that I've seen before include "travelling band" , "Group of touring players" , "Acting company" , "Travelling company of performers" , "tour?" .)