A LOOSE trailer created alarm for 19 students riding a bus home from school on the Beechworth-Wodonga Road at Leneva on Wednesday.
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Just before 4pm the tandem trailer and its hitch sheared from a northbound stationwagon towing it resulting in it being hit by a southbound bus.
Tallangatta police officer Senior Constable Ben Stewart said quick-thinking by the bus driver meant her vehicle's damage was relatively limited.
However, CFA members needed to cut tree branches to access the bus door to free the students who came from seven primary and secondary schools.
Senior Constable Stewart said no action would be taken against the car driver with the cause of the crash deemed to be a mechanical fault with the towing connection.
The incident happened near the junction with Boyes Road.
The bus will remain at the site overnight and be towed out on Thursday.