22,000 students told to pay back ‘mis-sold’ maintenance loans
22,000 Students Told to Pay Back ‘Mis-Sold’ Maintenance Loans
Over 20,000 students are being asked to refund maintenance loans and grants they were awarded mistakenly, according to recent reports. The affected individuals are enrolled in weekend-based courses and received correspondence from the Student Loans Company (SLC) or their educational institutions stating their programs were never eligible for such financial support. A sample letter from the SLC highlights that the university provided inaccurate details, failing to mention the student’s attendance was limited to weekends. The document notes that any excess funds received must be repaid promptly.
The BBC identifies several universities and colleges, including London Met, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes, as part of the issue. These institutions offered in-person classes on weekends, with some incorporating online learning during weekdays. Students enrolled in these programs applied for loans to cover living expenses, and in some cases, childcare grants. In a joint statement, the involved institutions cited an “abrupt” government decision as the root of the problem, with plans to pursue legal action.
The Department for Education, however, attributes the error to “incompetence or abuse of the system.” Maintenance loans are disbursed in installments to assist with daily costs like rent and food. Unlike tuition loans, which go directly to universities, these funds are given to students personally. Repayments commence once graduates earn above a specified income threshold. Some of the impacted students also received childcare grants, which are not recoverable.
Franchise agreements are involved in a minority of cases, where a smaller organization delivers courses under a contract with a larger university. The SLC has advised students to seek assistance if repayment would cause financial strain, suggesting universities might offer support. Amira Campbell, president of the National Union of Students, described the situation as deeply distressing. “They’re worried, they’re not sleeping, they don’t know where they’re going to find the money,” she said.
Khawaja Ahsan, who recently completed his first year of a BSc in cyber security at the University of West London, is among those affected. His course, marketed as a Saturday-intensive option for working students, included a maintenance loan and childcare grants for his three children, totaling £14,335. “I feel betrayed and massively let down,” he shared, emphasizing the financial pressure on his part-time work. Campbell noted that many students involved are from working-class backgrounds, struggling to cover unexpected costs.
On Wednesday evening, a small group of students secured temporary relief as the SLC reversed its decision, restoring their entitlement to payments. These students pursue a four-year BSc in acupuncture, which combines weekend classes with 25 days of clinical training annually. Two weeks prior, they were informed of an immediate repayment requirement, with one student on the brink of final exams facing a £37,000 demand. “The stress of it is making me ill,” she said, requesting anonymity due to uncertainty. Most of the 22,000 students remain in financial turmoil, with some universities imposing April 15 deadlines to decide their course continuation.
“They’re worried, they’re not sleeping, they don’t know where they’re going to find the money.” – Amira Campbell, National Union of Students
Ahsan’s case underscores the broader challenge, as he and his wife work part-time and lack the means for a lump-sum repayment. The controversy highlights systemic gaps in how eligibility is assessed for weekend-focused programs, leaving students in a precarious position. As the debate continues, the balance between institutional responsibility and student accountability remains under scrutiny.
