Cash-strapped students face starting the September term penniless, due to teething problems with a new online student loan system.
Some student support officers are warning that the new system is so slow that they cannot guarantee that September's loan cheques will be on time.
The new "Protocol" software has been introduced by the Student Loans Company, to enable students to apply for their loan and check its progress on the Student Finance Direct website. But so far the software has been dogged by hiccups. Last year a pilot scheme struggled with slowness in the system and the extra administrative input it requires. One official admitted that some students were left waiting until November for the loan cheques.
The threat of another computer software-related fiasco could cause further embarrassment to the government, after a series of glitches and delays to public IT projects in the past few years. The criminal records bureau, the passport office, air traffic control services and immigration services have all experienced high-profile problems with computer systems.
Protocol is being rolled out nationwide from April, but some local education authorities - whose student support officers are processing applications - say the system could produce similar problems on a national scale. The Student Loans Company admits that the scale of the project is causing "issues", but insists loan cheques will be issued on time.
Stephen Laidman, head of student supports and accounts at Durham County Council, one of the pilot areas, said: "It was a struggle last year and we didn't actually get them [loan cheques] all out, there was a backlog until October/November. My colleagues on the pilot all had a backlog which was unusual.
"This year it's been very volatile. The system is quite slow. We had a message the other day saying that they've suspended the rollout while they fix it. We've got the timetable for this year and to be honest I wouldn't commit that we can get the loans out. It all depends on this system."
Six other student support offices contacted by EducationGuardian.co.uk today reported having experienced problems. Officers reported slowness with the system, the system "timing out" while an officer is using it, and added workload caused by the extra inputting required. Officers manning student helplines reported having had their passwords since the first week of January, but being unable to use them.
Julie Atkinson, a student support officer at West Sussex county council, said they had experienced similar problems. "It depends how many people are in the system," she said. "Today most of my colleagues are on an away day so there are only four of us using the system today and it's OK. But we have been having a nightmare time with it. It's a brilliant system and it's going to be beneficial for students who will be able to tell exactly where they are - but at the moment it's wait and see."
Stuart Berwick, head of student support services at the London borough of Camden, said: "I rather hope that we can meet our deadlines, but I haven't got a crystal ball so I can't give a guarantee. I'm trying to be optimistic because I do think it has potential."
However Nottinghamshire county council, who were also part of the pilot, said that despite 5% of last year's cheques arriving late, this year things were going more smoothly and they expected to be on target.
The Student Loans Company issued a statement in response to questions from EducationGuardian.co.uk. It said: "Following a successful pilot, this system is now being rolled out to all local authorities and will be fully operational for the academic year which starts in September. Students who apply on time will be paid on time.
"In rolling out a project of this size, issues will always arise. We will continue to work with local authorities to ensure that they are resolved in good time."
A spokeswoman added: "Recently, there were some problems around system performance. Fixes have now been introduced and LEAs have confirmed that performance has improved. We would also emphasise that the rollout is being carried out at the time of the year when LEAs are at their quietest, so any issues can be addressed well before the start of term."
There would be contingency arrangements to ensure no student suffered hardship, she said.
Mandy Telford, president of the National Union of Students, said: "It has never been tougher to be a student. The student loan is the bulk of money students have coming in and, although it is way short of meeting all their costs, it is vital to pay rent and buy books at the start of the academic year.
"Historically there have been many problems with loans not arriving on time and students really struggling to get by at a time when they are trying to adjust to university life. There is still seven or eight months until term starts, so I trust the SLC will get their house in order and make sure no student is forced to wait for their loan when term starts."
Graham Lane, chair of the Local Government Authority education committee, said: "There is some evidence that there have been technical teething problems emerging. When a system such as this goes national there will always be the usual problems. I think there will be issues of compatibility to iron out. There's lots to do but it's early days yet."
