22,000 Students Told to Repay "Mis-Sold" Maintenance Loans After Funding Error
More than 20,000 students across England have been told they must repay maintenance loans and grants after being given the money by mistake.
The issue affects students on weekend-based courses at around 15 universities, including London Metropolitan University, Bath Spa University, Leeds Trinity University, Southampton Solent University and Oxford Brookes University.
Those who have been affected have received letters from the Student Loans Company or their university saying their courses were never eligible for this type of support. One message explained the mistake, saying: “unfortunately, they didn't tell us you only attended on the weekend”. Students are now being told that any “over-payment” must be paid back, with some facing bills running into tens of thousands of pounds.
Maintenance loans are designed to help with living costs like rent and food, and are usually only available for students attending in-person courses during the week. However, many of the affected courses involved weekend teaching, sometimes alongside online learning during the week.
The government says the problem came from courses being wrongly classified, with some providers registering them in a way that made students appear eligible when they were not. A spokesperson said: “A small number of Higher Education providers have incorrectly categorised courses that are distance learning. The Department for Education has requested that providers work with SLC to enable us to re-assess entitlement, in line with the student finance regulations.” Some of the courses were run through franchise arrangements, where universities partner with smaller organisations to deliver teaching.
The fallout has left thousands of students scrambling to figure out how to repay the money. In some cases, they’ve been told to find large sums immediately, while also deciding whether to continue their studies. Some universities have given students until mid-April to decide whether to stay on their courses, while also exploring ways to adjust programmes so they qualify for funding going forward.
Education Secretary Bridget Phillipson said the situation was not caused by students. “This is not the students’ fault. Too many organisations have let their students down, through either incompetence or abuse of the system. Many of these organisations lack the necessary governance and oversight to properly implement clear guidance. Others have used this loophole as another opportunity to abuse public money. Either way, this is not the standard I expect from our world-class university sector.”
Universities, speaking through their representative body, say they are “extremely concerned” and are considering legal action, arguing the situation followed an “abrupt” policy shift.
With uncertainty continuing, many students now face the prospect of significant debt, and tough decisions about whether they can afford to continue their education.
