Student Finance Payment blocked

Basically I did my Foundation Year at University of Reading and then transferred to Queen Mary University of London for my BSc. Apparently, I have applied for Student Finance as a continuing student at Reading and then changed my university to Queen Mary after everything has been confirmed.
SFE sent me a letter stating they have received my withdrawal from University of Reading on the 2nd of September. I thought that everything was ok, I have received my Maintenance loan right on time. But on the 4th of October, 12 days before the tuition payment to the uni is due, they blocked all further payments. I called them up and they said I have to apply as a new student again and cancel my previous application. So basically the whole thing all over again and the payment us due in 11 days.
Will I not be able to attend university until then? My midterms and important coursework are coming up. Am I supposed to just drop out for the year because of that?
What's most important,why tf would they not block it on the 2nd of September when I would have plenty of time to sort the whole thing out.