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 received financial support for weekend courses that were not eligible for maintenance loans or childcare grants. These individuals are now required to return the funds immediately. The Student Loans Company (SLC) and their educational institutions sent letters stating that the courses, which involved weekend in-person sessions and some weekday online learning, were not qualified for such aid. One SLC letter, reviewed by the BBC, highlights that the university provided inaccurate details, failing to note the student’s weekend-only attendance.
Universities and government decisions
The affected courses span 15 universities and colleges, including London Met, Bath Spa, and Southampton Solent. Students had enrolled in these programs, securing loans and, in some cases, grants, to support their studies. In a joint statement, the institutions blamed a government decision for the confusion, suggesting it was abrupt and that legal action may follow. The Department for Education, however, attributed the error to students’ “incompetence or abuse of the system.”
Financial implications and support
Maintenance loans are distributed to students to cover living expenses like housing and food, with amounts determined by household income. Unlike tuition fees, which are paid to universities, maintenance funds go directly to students. Repayments begin after graduation if earnings exceed a certain threshold. Some students also received childcare grants, which are not repayable. The SLC has advised those facing repayment challenges to seek additional support, noting that universities might assist in cases of financial strain.
“They’re devastated. They’re worried, they’re not sleeping, and they don’t know where they’re going to find the money,” said Amira Campbell, president of the National Union of Students.
Khawaja Ahsan, a first-year BSc cyber security student at the University of West London, now owes £14,335 after receiving both a maintenance loan and childcare grants for his three children. “I feel betrayed and massively let down,” he said, explaining that he and his wife work part-time and lack the funds for a lump-sum repayment.
A handful of students received temporary relief when the SLC reversed its stance, reinstating their eligibility. These students are pursuing a four-year BSc in acupuncture, which combines weekend classes with 25 days of clinical training annually. Two weeks ago, they were told to repay £37,000 immediately, with one woman breaking down in tears as she feared being unable to cover her costs while working minimum-wage hours.
Almost all the remaining 22,000 students continue to struggle with repaying tens of thousands of pounds. Some universities have imposed mid-April deadlines for students to decide whether to remain on their courses. The situation has left many in financial distress, with some degrees delivered through franchise agreements involving smaller organizations.
