The national student grants body has apologised to almost 40 students who had their funding suspended.
Payments to people studying dental nursing and hygiene courses in UCC and Trinity College Dublin were cut following a review which suggested the courses may not have met grant eligibility criteria.
SUSI has now confirmed that all grant payments will be restored.
The students had their grants approved before the start of the academic year and were in receipt of payments when they were notified that funding could be cut. They were told they would also have return the money they had already received.
Deirdre Maher, who is studying dental hygiene at TCD, welcomed the decision to restore payments, but said it had been a stressful waiting game.
"I was quite devastated because my mum is on disability and it's just her," she said. "We can't afford for me to travel in and out of Dublin everyday.
"We can't afford some of the basics so I wouldn't want her paying for all that."