The universities of Coventry and Central England are each writing to hundreds of students threatening to ban them from lectures, libraries and exams.
Students continue to face expulsion from their courses because they are unable to pay their bills.
The universities of Coventry and Central England are each writing to hundreds of students threatening to ban them from lectures, libraries and exams.
The universities say they need the money to provide their services and have no choice but to get tough.
But they are unhappy at having to become debt collectors.
'Deterrent'
Central England's vice-chancellor, Peter Knight, told BBC News: "On our present experience there is no chance of the government reaching its target for 50% of students in higher education.
"The abolition of the maintenance grant is deterring them even more. There is now genuine student poverty."
The problem was worst for those from middle income families, he said. Their student loan was not enough to meet their living expenses.
Many were working as well as studying full-time - which was going to have an impact on their grades, he said.
'Unprecedented'
"The university is not really set up, our systems aren't designed to allow us to manage the level of student debt that we are currently seeing.
"I have never been faced before with the problem that I see now, of potentially 200 students having to be excluded because they cannot afford or are unable to pay the university the fees that it is entitled to."
Universities UK, which represents vice-chancellors, said it was important that students facing difficulties got in touch with their institutions about finding ways to pay.
Higher earnings
Its chairman, Professor Roderick Floud of London Guildhall University, said: "Higher education is an extremely good investment.
"All the evidence suggests that if you do get a degree your lifetime's earnings are hundreds of thousands of pounds more than they would be if you don't get a degree."
Another leading light in Universities UK, Bournemouth's vice-chancellor, Professor Gillian Slater, has called on all political parties to debate the funding of higher education.
"The introduction of tuition fees and the replacement of student grants with loans has put students at a disadvantage," she said.
"It is only by reintroducing grants for all students that we will be able to encourage more of them to benefit from higher education."