A motion presented at the meeting asked members to agree the claims of anti-Semitism within the Labour Party and by Corbyn were unfounded and part of a plot against the leader and Labour.
The Labour leader will say the move would make a "huge difference" to up to 13m young adults by saving them as much as £1,000 a year.
Loach, who has rubbished the idea that Labour has a problem with anti-Semitism in the past, said Labour would not be able to govern "if you've got two-thirds of Labour MPs undermining Jeremy Corbyn when he is prime minister".
In a letter sent to members of the Barrow and Furness Labour Party at the weekend, constituency secretary John Clark, said: "I have been asked by the Barrow and Furness Executive Committee to let you know that we have written to the Labour party secretary and the National Executive Committee for advice concerning John Woodcock's recent public comments".
Mr Loach went on to accuse the Israeli government of "infiltrating and undermining the Labour left".
Mr. Gabbay has subsequently ordered his MPs and staff to cut contact with Mr. Corbyn and his office.
"Last election, Labour promised to pay off student debt if elected and then admitted it would actually cost too much to do".
Loach told the paper that his earlier quotes "do not reflect my position".
He said: 'Re-selecting an MP should not be based on individual incidents but reflect the MP's principles, actions and behaviour over a long period. "Being an MP is not a job for life", he explained.
Mr Corbyn, a supporter of Palestinian rights and critic of Israel, has repeatedly faced accusations of turning a blind eye to anti-Semitism in the party and groups he supports.
Corbyn has stated on numerous occasions that antisemitism is a serious issue and that he will deal with it properly, but Britain's Jewish community has become increasingly ill-at-ease with Corbyn's propensity to condemn Israel without finding time to condemn genocidal terror organizations, and the repeated tolerance of members of the party members who have made antisemitic slurs and jokes.
'This is in addition to your very public hatred of the politics of the Government of the State of Israel, many of which regard the security of our citizens and actions of our soldiers - policies where the opposition and coalition in Israel are aligned'.
A Labour source said it was nonsense that the policy would cost £13bn, a sum it said was based on the assumption that every person under 25 in the United Kingdom would use a bus 10 times a week.
Corbyn said Tuesday that his party was "utterly determined in every way to drive out anti-Semitism from our society". I think they should have done me the courtesy of asking me first'.