The Taoiseach has told the Dail that Clare County Council are not legally allowed to withhold grants from third level students.
It emerged yesterday that the Council had written letters to grant applicants asking them if they've paid their household charge.
It says it will prioritise the processing of grants for applicants who've paid their 100-euro levy.
Donegal County Council refused to rule out adopting a similer policy however Sinn Fein Councillor Jack Murray said his party had recieved legal advice that such a move would not stand up in the courts.
And in the Dail earlier today, the Taoiseach told the Sinn Fein leader Gerry Adams that councils do not have the legal power to stop people from receiving grants: