The college van was carrying students to the alma mater in early hours of the day near Mano Chowk when a speeding oncoming bus rammed into it, resulting instant death of college bus driver alongside two students.
Rescue officials said the incident occurred due to low visibility in the wake of fog.
At least 15 of the people were also injured who were aboard the other bus.
The injured were immediately moved to Tehsil Headquarters Hospital, Phalia. Nine of the injured persons were shifted to hospitals in Lahore and Gujrat due to their critical condition.