The college is in the middle of a major redevelopment programme
A college which caters for disabled students could be at risk after the loss of a grant of more than £5m.
The National Star College in Cheltenham said the money had been withdrawn by the Learning and Skills Council.
Kate Green, from the college, said a major redevelopment programme being carried out had had to be put on hold as a result.
"At the moment we are lobbying and doing what we can to get the decision overturned," she said.
"It does make it difficult because our facilities are outdated and in need of a major upgrade," Ms Green added.
In a statement the Learning and Skills Council said: "Many colleges have incurred development costs for projects which will not now be going ahead in the short term.
"We have a contingency fund to mitigate the impact of potential aborted costs on the financial health of colleges."