Up to 2000 students at TAFE's Sydney Institute have not been enrolled because of continuous problems with the NSW government's $531 million bungled IT system, teachers say.

There have been delays in students' ability to borrow library books, log on to computers and access on-campus facilities such as printers because of the systems failures halfway through the teaching semester.

A leaked email chain to TAFE's new managing director Jon Black also reveals that students who graduated last year after spending thousands of dollars on their education have been unable to receive their diplomas because of the ongoing glitches.

It is the second year in a row that the system has created havoc for the vocational education provider, with senior leaders describing it as a "disaster". The EBS system is a part of the government's Learning Management and Business Reform (LMBR) program that has been rolled out across the state over the past decade. A report by the NSW Auditor-General found the program's costs had blown out by nearly $100 million last year.