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Failed Foundation and uncertain if denied funding for retaking year. Please advise.

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TSR's new app is coming! Sign up here to try it first >> 17-10-2016
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    I have just today found out i've been slated to repeat my 3 year Engineering degree's foundation year course (making it 4 total), and just got a letter in the post today stating that SFE will not be paying for the 2016/17 because I am "repeating my foundation year for the first time" and excepting compelling personal reasons the decision is final. The problem being is that the letter (transcribed below) is vague and contradictory. I did also attempt a degree for modern history in 2012, but left partway through.

    Dear <Sir>,

    Assessment of Application for Student Finance Academic Year 2016/17:

    Thank you, for your application for student finance. I am writing to you regarding your support for the 2016/17 academic year.

    All students who are eligible for full support are entitled to receive a tuition fee loan for the length of their proposed course plus an additional year. All part years of attendance on any previous higher education course are counted as a whole year.

    Due to the fact that you are repeating your foundation year for the first time, you will not qualify for fee support in the 2016/17 academic year. May I explain that students are entitled to the length of their course plus one additional year. As this is your first repeat, you have used up all of your entitlement for this year of your course.

    Eligibility for the maintenance grant/special support grant is assessed using the same calculation and therefore you will also be ineligible to receive a maintenance/support grant. You are however, eligible to receive a maintenance loan, and your application has been assessed accordingly to reflect your circumstances.

    If you believe there were Compelling Personal Reasons (CPR) causing you to repeat a period of your course, it may be possible to offer you an additional year of fee support. In order to be considered for this we require you to provide us with independent evidence of the circumstances which led you to repeating a period of study. Acceptable evidence can be a doctor's letter or a letter from your University detailing the reasons why you have had to repeat.

    So, my first question is what exactly this letter means for me since the letter isn't very clear. And assuming my desperation is causing me to believe that I might not be completely out of luck when in fact I am; What alternative means are available to me as a 23 year old, seeing as I still wish to study the full course?

    Please respond in detail, as this is understandably important.

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Updated: September 3, 2016
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