Catharine,
Test anxiety is not uncommon. Students with severe cases may need to be referred to a mental health professional. Your campus should work to idenify local professionals who can help these students.
Most of the time, practicing taking tests is an effective way to address this situation. It may help if you develop practice tests so that students can get a feel for how they will be evaluated. If it is a content mastery issue, students may benefit from well-designed study guides and extra review sessions.
These are many sites on the net that you can look at for study tips you can provide to your students.