22,000 students told to pay back ‘mis-sold’ maintenance loans
Approximately 22,000 students are being asked to return financial aid they were wrongly awarded, according to a recent revelation. These individuals enrolled in weekend-based programs and received letters from the Student Loans Company (SLC) or their educational institutions claiming their courses were not eligible for maintenance loans or childcare grants. A sample letter from the SLC, shared with the BBC, notes that the university provided inaccurate details, failing to inform the student they attended classes only on Saturdays.
Repayment demands and affected institutions
The SLC insists that any over-payment must be reclaimed, impacting students who had secured loans and, in some instances, grants for childcare. The BBC reports that 15 universities and colleges, such as London Met, Bath Spa, and Oxford Brookes, are implicated. These programs featured in-person instruction on weekends and online learning during the week. Students who enrolled faced potential repayment of amounts totaling up to £14,335, including loans and grants.
Universities’ response and legal considerations
In a joint statement through Universities UK, the involved institutions stated the issue arose from a government decision described as “abrupt.” They are contemplating legal action against the policy. Meanwhile, the Department for Education attributes the problem to “incompetence or abuse of the system,” leaving students to shoulder the financial consequences.
Maintenance loans are designed to assist with living expenses like housing and food, distributed in installments. These loans are means-tested based on household income, unlike tuition fees which are directly paid to institutions. Repayment begins after graduation when earnings exceed a specified threshold.
Franchise model and financial strain
Some affected courses operate under franchise agreements, where a smaller entity delivers the program on behalf of a larger university. The SLC advises students facing repayment challenges to seek assistance, suggesting universities might provide support. However, many remain in financial distress, with some required to repay substantial sums immediately.
Student reactions and relief efforts
The National Union of Students’ president, Amira Campbell, expressed dismay over the situation, stating students are “devastated” and struggling with anxiety and uncertainty. “They’re worried, they’re not sleeping, they don’t know where they’re going to find the money,” she said. A recent reprieve was granted to a small group of students enrolled in a four-year BSc acupuncture program, which includes 25 days of clinic-based training annually. Their repayment demands were temporarily reversed.
Khawaja Ahsan, a student at the University of West London, now faces repayment of £14,335 after securing a maintenance loan and childcare grant. He described feeling “betrayed and massively let down,” noting his part-time work with his spouse left them unable to cover a large sum. Many other students are still working to meet their obligations, with some given a mid-April deadline to decide whether to continue their courses.
“The stress of it is making me ill, to be honest. I don’t have that money.” — Anonymous student facing a £37,000 repayment demand
