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 learners have been notified they were wrongly issued maintenance loans or grants and now face the obligation to refund the funds. The affected individuals, all enrolled in weekend-based programs, received correspondence from the Student Loans Company (SLC) or their educational institutions asserting that their courses were not eligible for financial aid. A letter from the SLC, reviewed by the BBC, highlights that the university provided inaccurate details, failing to mention the student attended classes only on Saturdays. It emphasizes that any excess funds will need to be returned.
Universities and courses implicated
The issue impacts programs at 15 institutions, such as London Met, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes. These courses featured weekend in-person sessions, with some offering weekday online learning. Students applied for loans and, in some cases, childcare grants, assuming the courses met eligibility criteria. In a joint statement, the involved universities attribute the problem to a government decision made without prior consultation, suggesting a potential legal action.
“The stress of it is making me ill, to be honest. I don’t have that money.”
Financial consequences and student reactions
Maintenance loans, designed to cover living expenses like housing and meals, are means-tested using household income. Unlike tuition fees, which are paid directly to universities, these funds go to students. Repayments begin after graduation and when earnings exceed a set threshold. Some students also received childcare grants, which are non-repayable. The SLC advised seeking assistance if repayment caused hardship, noting universities might offer support.
Khawaja Ahsan, a recent graduate from the University of West London, received £14,335 in loans and grants for his BSc cyber security course. He now may have to return the full amount, despite working part-time with his wife. “I feel betrayed and massively let down,” he said, expressing concern over the financial burden.
Franchise models and recent relief
A significant number of affected students are enrolled in courses delivered via franchise agreements, where a smaller entity partners with a university to offer programs. On Wednesday, a few students received temporary relief as the SLC reversed its stance, restoring their eligibility. These students, pursuing a four-year acupuncture BSc, had 25 days of clinical training annually alongside weekend classes. Two weeks prior, they were told to repay £37,000 immediately, with one student breaking down in tears over the uncertainty.
Broader impact and deadlines
Most of the 22,000 students remain in financial turmoil, facing repayment of substantial sums. The National Union of Students reports some institutions have imposed mid-April deadlines for students to confirm their continued enrollment. This has left many grappling with the need to cover costs while balancing studies and work, especially those from working-class backgrounds.
