Clare County Council has responded to criticism over letters it sent asking 3rd-level grant applicants to prove that they have paid the household charge.
The Council has not said grants will be withheld from students who have failed to pay the charge.
However it says those who have paid will be given priority.
The Union of Students of Ireland (USI) says it is taking legal advice over the issuing of the letters and is planning a protest in Ennis.
But the Education Minister Ruairí Quinn has defended the Council saying the letters are reasonable.
The Environment Minister Phil Hogan has also defended the decision saying that the Council was following his instructions to ensure there was a higher level of compliance in relation to the payment of the €100 levy.
The Campaign Against the Household Charge has described the move as a new low for the government.
3 bus loads of students are protesting outside Clare County Council this afternoon in a bid to force the council to reverse the decision.
Joe O’Connor is GMIT Students’ Union President.
He has told iRadio that students will not be held for ransom.
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