22,000 students told to pay back ‘mis-sold’ maintenance loans
22,000 students required to refund ‘erroneously issued’ maintenance loans
Over 20,000 students have been informed they were incorrectly awarded maintenance loans and grants, prompting calls to return the funds. These learners, enrolled in weekend-based programs, received notices from the Student Loans Company (SLC) or their institutions stating their courses were not eligible for financial support. A letter from the SLC, reviewed by the BBC, highlights that universities provided misleading data, failing to disclose the students only attended classes on weekends.
Eligibility concerns and financial impact
The letter emphasizes that any overpayment must be repaid. Affected courses span 15 universities and colleges, including London Met, Bath Spa, and Oxford Brookes. These programs featured in-person instruction on weekends, occasionally paired with weekday online modules. Students had applied for maintenance loans and, in some cases, childcare grants, believing their enrollment qualified them for support.
“The issue arose from a sudden government decision,” stated Universities UK in a joint declaration. “We are exploring legal avenues to challenge this.” The Department for Education, however, blamed students for “incompetence or misuse of the system.”
Franchise deals and repayment challenges
Some courses are delivered through franchise agreements, where smaller entities run the program under a university’s name. The SLC urged students to seek assistance if repayment would cause hardship, noting universities might offer support. National Union of Students president Amira Campbell called the situation “devastating,” with students expressing fear and anxiety over covering repayment costs.
Khawaja Ahsan, a student at the University of West London, shared his struggle. He had received a maintenance loan and childcare grant totaling £14,335, which he now risks repaying. “I feel betrayed and deeply let down,” he said, explaining his family’s part-time work left them unable to meet the lump-sum demand.
“The stress is making me ill,” said a woman who recently faced a £37,000 repayment request while working minimum wage. She broke down in tears, requesting anonymity due to uncertainty. Her case, along with others, was temporarily halted when the SLC reversed its stance, reinstating payment rights for a four-year acupuncture program.
Ongoing uncertainty and deadlines
Despite this reprieve, the majority of the 22,000 affected students remain in financial limbo. The National Union of Students reports some institutions have set mid-April as a deadline for students to confirm their continued enrollment. Many are balancing part-time jobs with studies, struggling to cover unexpected repayment costs.
Maintenance loans, designed to cover living expenses like housing and food, are means-tested based on household income. Unlike tuition fees, which are paid directly to institutions, these funds go to students. Repayments begin once they complete their degree and earn above a certain threshold. Childcare grants, however, are non-repayable for eligible recipients.
