rejection help

I applied for student finance under the long residency criteria , Which I was deemed eligible , SFE just need confirmation of my status ( 3 years legally ) ; which SFE sent for a home office checks, I was told my finance was rejected because a home office rep stated I didn't make an in-time application ( please note once you make an application to renew visa it has to be done around 2 weeks before the expiry of current visa. I asked the the adviser form student finance what the home office letter stated and he stated below : ILR granted 06-9-2013 -18/03/2016 application made 2/03/2016 and rejected on 27/07/2016 ( home office rejected my application due to the fact I didn't have a passport, they then stated I had a month to reapply failure to comply with this request will result with my application being rejected. application made 23/08/2016 IRL granted 14 march 2017 until 2019 for some reason home office has then suggested I didn't make an in-time application. which SFE has now used that information to reject my application ( stating that as there wasn't an in-time application I was technically illegal (now have gaps) from the 18/03/2016 to 23/08/2016 . which is devastating as I did make an in-time application on the 2nd of march which I also stated the letter from home office stated that I made an application clearly before my visa ran out. now SFE is telling me now that they can only go from what the home office states and they stated my application wasn't time which contradicts there letter as it says I made an application on the 2nd of march 2016. I am already at uni and all this is bringing me anxiety and stress .I am looking to appeal this ; As this doesn't make any sense. can any one help?