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 are being asked to return maintenance loans and grants they were mistakenly awarded, according to a recent announcement. These students, enrolled in weekend-based programs, received notices from the Student Loans Company (SLC) or their institutions asserting that their courses were ineligible for financial support. A letter from the SLC, shared with the BBC, highlighted that the university had provided false details, failing to note that the student attended classes only on weekends.

The issue affects courses at 15 universities and colleges, such as London Met, Bath Spa, and Oxford Brookes. Many of these programs involved in-person teaching on weekends and online learning during the week. Students had enrolled in these courses and secured loans for living expenses, with some also receiving childcare grants. In a joint statement via Universities UK, the involved institutions claimed the problem arose from a government policy change and are exploring legal options to challenge the decision.

The Department for Education countered by stating students had been “let down by incompetence or abuse of the system.” Maintenance loans, designed to cover daily living costs like rent and food, are means-tested based on household income. Unlike tuition fees, which are directly paid to universities, maintenance funds go to students. Repayments begin after graduation, provided earnings exceed a specified threshold. Childcare grants, however, are not repayable.

Impact on students and financial strain

Several students are facing significant financial pressure, with some required to repay large sums immediately. Khawaja Ahsan, a recent graduate from the University of West London, received £14,335 in loans and grants, including childcare support, which he may now have to settle. “I feel betrayed and massively let down,” he said, explaining that he and his wife worked part-time and lacked funds for a lump-sum payment.

“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 affected students, she noted, were working during the week to pursue better career prospects. “Many of them come from working-class backgrounds and can’t access large sums at short notice,” Campbell added.

Some courses are delivered under franchise deals, where a main university contracts a smaller organization to run the program. The SLC urged students to seek additional help if repayment caused financial hardship, suggesting universities might provide support. A temporary reprieve was granted to a group of students studying a four-year BSc in acupuncture, which includes 25 days of clinical training yearly. Two weeks ago, they were told to repay £37,000 immediately, but the SLC later reversed its stance.

Despite this, the majority of the 22,000 students remain in limbo. According to the NUS, some universities have imposed deadlines by mid-April for students to decide whether to continue their courses. The situation has sparked concerns about the sudden reversal of financial support, leaving many to question their future.