22,000 students told to pay back ‘mis-sold’ maintenance loans
22,000 students told to pay back ‘mis-sold’ maintenance loans
Over 22,000 students have been informed they were incorrectly awarded maintenance loans and grants, requiring them to return the funds immediately. The affected individuals, enrolled in weekend-based courses, received notices from the Student Loans Company (SLC) or their institutions stating their programs were not eligible for financial support. A letter from the SLC, shared with the BBC, highlighted that universities provided inaccurate data, failing to disclose students only attended classes on weekends.
Affected Institutions
Several universities and colleges, including London Met, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes, are involved. These courses featured in-person instruction on weekends and, in some cases, online classes during the week. Students enrolled in these programs had taken out maintenance loans and, for some, childcare grants. Universities UK, in a joint statement, attributed the error to a sudden government policy shift, suggesting potential legal action.
The Department for Education, however, blamed the students for “incompetence or misuse of the system.” Maintenance loans are distributed in installments to cover living expenses, like rent and food. Unlike tuition fees, which are paid directly to institutions, maintenance funds go to the student. Repayment begins after graduation, provided their earnings exceed a specific threshold.
Financial Impact
Some students also received childcare grants, which are not repayable. The SLC advised those facing repayment challenges to seek assistance, noting universities could offer support. Khawaja Ahsan, a student at the University of West London, faces repaying £14,335 after receiving a maintenance loan and childcare grant. “I feel betrayed and massively let down,” he said, revealing his and his wife’s part-time work left them unable to cover the debt.
“They’re devastated. They’re worried, they’re not sleeping, they don’t know where they’re going to find the money,” said Amira Campbell, president of the National Union of Students.
Many of the impacted students work during the week to pursue “better jobs” in the future, often from working-class backgrounds. The NUS reported some universities set mid-April deadlines for students to decide if they would continue their courses. A recent reprieve was granted to a group of students studying a four-year BSc in acupuncture, which includes 25 days of clinical training annually. Two weeks prior, they were told to repay £37,000 immediately, with one student tearfully pleading for time while working a minimum-wage job.
The situation has left most of the 22,000 students struggling to repay substantial sums. Some courses are delivered via franchise agreements, where a smaller organization handles teaching under a university’s name. The SLC emphasized financial hardship could be considered, but the core issue remains unresolved for the majority.
