22,000 students told to pay back ‘mis-sold’ maintenance loans

Over 20,000 students are being asked to return funds from maintenance loans and grants they were awarded incorrectly. These individuals, enrolled in weekend-based courses, received correspondence from the Student Loans Company (SLC) or their educational institutions stating their programs were ineligible for financial support. One SLC letter, shared with the BBC, pointed out that the university misrepresented the student’s attendance pattern, failing to inform them that classes were only held on weekends.

The issue has impacted courses at 15 universities and colleges, including London Met, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes. These programs featured in-person instruction on weekends and some online learning during the week. Students had enrolled in these courses and accessed loans for living expenses, with some also receiving childcare grants. The SLC now demands repayment of any overpaid amounts.

Universities and government clash over decision

In a shared statement from Universities UK, the affected institutions claimed the error resulted from a sudden government policy shift. They are evaluating the possibility of legal action against the Department for Education, which attributed the mistake to “incompetence or abuse of the system.” Maintenance loans, designed to cover daily living costs like housing and meals, are assessed based on household income and disbursed directly to students.

Childcare grants, however, remain non-repayable for qualifying students. The NUS highlighted that many affected learners work during the week to pursue career advancement, often from working-class backgrounds struggling to meet sudden financial obligations. Khawaja Ahsan, a first-year BSc cyber security student at the University of West London, faces repaying £14,335, including a childcare grant, after his course was deemed ineligible.

“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.

Some students, like those in a four-year acupuncture program, received a temporary relief after the SLC reversed its stance. These students, who also completed 25 clinic days annually, had been ordered to repay £37,000 immediately before the reprieve. A woman, about to sit final exams, emotionally pleaded for time to avoid repaying the debt while working minimum-wage hours. “The stress of it is making me ill,” she said, requesting anonymity due to the uncertainty.

Most of the remaining 22,000 students continue to scramble for funds to repay tens of thousands. Some universities have set a mid-April deadline for students to confirm their continued enrollment. The situation has sparked concern over the financial strain on learners who relied on these funds to manage their studies and living costs.