Hundreds of Oxfordshire teenagers who were left strapped for cash after delays in the payments of their student grants are able to claim interim money from their colleges.

Up to 150,000 students nationwide were affected by the late payment of their Education Maintenance Allowance (EMA) after Liberata, the company hired to deliver the grants by the Learning and Skills Council, encountered technical problems with its online system and phone lines.

The grant, worth up to £30 a week, is available to 16 to 18 year olds from low income backgrounds. College principals in Oxfordshire had feared it could lead to some students dropping out.

Yesterday, the Learning and Skills Council confirmed any student eligible for the EMA can now receive interim support from their college.

Mark Haysom, chief executive of the LSC, said: "Less well-off students starting courses without funding is simply not acceptable. We've arranged for colleges to have access to funds as a matter of urgency so that no student in this situation will lose out."

He said Liberata has now taken on an extra 460 staff to speed up the manual application process.

Sally Dicketts, principal of Oxford and Cherwell Valley College, said a "high proportion" of her 3,000 students would have applied for the grant and she had already advised students to seek help from the college.

She said: "We had already offered to make some allowance and give students support which they could pay back once they receive their money."