The National Union of Students organised Friday's protest to call for a public inquiry into what it calls the "failings of the student support system" and the SLC.

Andrew Pakes: "This is the second time the SLC has got it wrong"

It says about 40,000 loans have been delayed this term, and loan cheques have been cancelled.

It also says the SLC's helpline has been "no help at all", with some students kept waiting on the telephone for up to 45 minutes, only to be referred back to their college or local authority.

The BBC's James Westhead: "The problem is the system is so complicated"

The union says the action follows the failure of the SLC's chief executive Colin Ward to respond to its letters and lobbying.

It wants to highlight how problems with loans, which have now completely replaced grants, have contributed to student hardship.

David Baxter: "I haven't been able to devote the time to my course"

One student still waiting for his loan cheque is David Baxter, who is studying art at Goldsmiths College in London.

His application has only just reached the SLC, after being held up by computer problems at his local council, which has to assess each application.

"They've said it's because of the computer problems, the bureaucracy that they're now having to deal with," he said.

"They've been very apologetic, but at the end of the day I've been having to worry about whether I can buy materials for my course, and all the worrying about whether I've got to borrow money from my parents again has meant that I haven't been able to devote the time to my course that I need to."

At the end of last month, the University of Plymouth reported that many of its students had been experiencing problems with their loan applications.

It says that one in seven students have still not received their loan cheques.

The government says that once applications reach the SLC, they are being processed quickly - most within a fortnight.

But students say the system has been lengthy and confusing every step of the way.

NUS national president Andrew Pakes said: "For the second successive year, the student support system has failed in its promises to students.

Hardship loans

"Throughout the summer, the NUS warned the SLC to get its act together.

"We recognise that efforts have been made, but the reality is that tens of thousands of loans have been delayed, cheques have been cancelled, and the SLC helpline has been no help at all.

"We are calling for a public inquiry into the failings of the student support system and the workings of the SLC."

Education Minister Malcolm Wicks said "Almost 400,000 students have applied for a loan, and seven out of eight have got their cheques."

He said many students had applied late, and that the scheme was "by and large a success".