The Union of Students in Ireland (USI) has informed the Department of Education it has run into financial difficulties.
A spokeswoman for the Minister for Education, Mr Dempsey,confirmed last night that officials met USI in recent days to discuss the problems and contact was "ongoing".
Mr Will Priestly, president of USI, confirmed that eight USI officers were to be made redundant because of a cash crisis at the organisation. USI represents more than 250,000 students in over forty colleges in Ireland.
Mr Priestly told The Irish Times he was confident the organisation could meet its financial responsibilities. He said a new structure for the organisation was being contemplated, with only a president and deputy president holding paid positions.
He said regrettably the positions of welfare officer, education officer, lesbian and gay officer and several regional officer positions would no longer be paid. He said many of these people would remain involved in the organisation on an unpaid basis. Four office staff would remain on the payroll, he said.