Correct setting for college to bring peace (5)
I believe the answer is:
truce
'peace' is the definition.
(I know that truce is a type of peace)
'correct setting for college' is the wordplay.
'correct' becomes 'true' (associated in meaning).
'setting for' is an insertion indicator (inserted letters are set inside others).
'college' becomes 'c'.
'true' enclosing 'c' is 'TRUCE'.
'to bring' is the link.
(Other definitions for truce that I've seen before include "barley" , "Temporary ceasefire" , "Agreement to stop fighting temporarily" , "Cease-fire, armistice" , "Suspension of hostilities" .)