A leading performing arts college and Epsom's MP are pulling out the stops in a bid help devastated students after their housing benefits were axed.

Last week financial support was cut off for around 140 students living in Epsom and studying at Laine Theatre Arts in East Street, Epsom, with some now on the brink of dropping out as a result.

Their courses had been considered as further education until last month when a judge ruled that they were in fact higher education so councils must stop housing benefit to students.

Peter Barlow, consultant at the college, said: "Laine Theatre Arts is doing everything we can to find alternative means of funding to cover the shortfall. We are in contact with various agencies."

Epsom and Ewell MP Chris Grayling said he was trying hard to work with colleagues in the government’s business department to find a way round for students.

Mr Grayling said: "It’s very unfortunate. It’s not something anyone was expecting to happen. It seems to be on a technicality. I’m trying to do everything I can to get it changed."

He said it was difficult to resolve because the change stemmed from a legal decision. He said: "The problem is the decision was made in the courts so you can’t just wave a magic wand.

"I don’t think people in the middle of courses should be made to drop out because of a change in rules."

Upper Tribunal Judge Bano dismissed an appeal against a decision of the First-tier Tribunal, which had upheld the rejection of a claim for housing benefit.

The claimant was one of seven appellants studying in Sidcup for a National Diploma in Professional Theatre accredited by Trinity College, London.

The first tribunal had found the course to be higher education rather than further education but said the conclusion was 'unsatisfactory' because the claimant, unlike others in higher education, was not eligible for a student loan.

In his decision Judge Bano said he shared the concern that the claimant did not not 'fall within the scope of any scheme of support for students'.

Nick Woodford, a student at Laine Theatre Arts, said he has contacted fellow students about starting a campaign to raise awareness of their plight.

Mr Woodford, who has written to Mr Grayling and Number 10, said: "Everyone is trying to do something. It is such a blow to the college."

He has been contacted by more than a dozen students who have been left in serious predicaments, with some fearing they have no other option but to drop out.

Bronte Lavine, 19, said she felt shocked and panicked because she had no idea how she could support herself through college.

Ms Lavine said: "If I were not in college I would be given council accommodation, income support or jobseekers allowance, plus any other benefits however because I am trying to continue study and become a professional I am penalised for this!

"If I attended university I could claim a student loan which would be interest free and would give me flexibility on repayments, however again I am penalised.

The only option I may have is to try to get a bank student loan which charges interest and repayments start two months after I leave college.

"Someone somewhere, please explain how this system is fair and how can I manage?"