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The Government was aware of potential problems with the student loans system as early as January, the Tories have claimed.
Minutes show a senior Government official was at a Student Loans Company (SLC) Board meeting when the problem of funding gaps having an effect on services was discussed, and he advised the company it may need to make further cuts.
Shadow universities minister David Willetts, who published the minutes, said they show the current delays were the result of a "toxic combination of bad Government guidance and shocking operational decisions".
The minutes, from January 27, show that SLC finance director Les Campbell told the meeting discussions were ongoing between the SLC and what was then the Department for Innovation, Universities and Skills (DIUS) about budgets.
The minutes say: "At this stage, there was a significant gap between what the company believed it required and what DIUS could provide. He added that although a number of internal factors were being analysed to try to reduce costs, it was unlikely that the savings gained would close the funding gap and, therefore, service standard levels may eventually be affected."
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The minutes also show that SLC chief executive Ralph Seymour-Jackson told the Board the SLC had never applied for resources to answer all phone calls "and accepted that at peak times, service levels would worsen".
Michael Hipkins, a senior DIUS civil servant, said "the outlook for DIUS was somewhat difficult as there are significant funding pressures and that DIUS expected efficiency savings within the company to have an increased focus", the minutes show.
It emerged on Thursday that minutes of SLC Board meetings showed there were concerns raised in January about a rise in demand, but apparent Government involvement in discussions was not previously disclosed.
The claims come as tens of thousands of teenagers are coming to terms with starting university without full funding. Numerous students have made complaints about delays in processing applications, as the SLC struggles to cope with demand.
Most English universities start their new terms over the next two weeks. The SLC has confirmed that between 50,000-60,000 students may not receive their full funding when they start university.
