Withdrawal of student loan for course transfer?

My boyfriend has decided that he wants to transfer to another course in his second year at uni, in the same department, which his lecturers have agreed to. He does have what his personal tutor has described as mitigating cirstances (financial difficulties and problems with one of his lecturers). However, someone has told him that unless the LEA accepts that he has had mitigating cirstances, he will not be eligible for a student loan next academic year, which would mean he could not continue with his studies. Does anyone know if this is the case?