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 have received maintenance loans and grants erroneously, now facing demands to refund the funds. The issue primarily impacts those enrolled in weekend-based courses, as they were informed by the Student Loans Company (SLC) or their university that their programs were ineligible for financial aid. A sample letter from the SLC, reviewed by the BBC, states that the university provided inaccurate details, failing to mention that the student only attended classes on weekends.
Unfortunately, they didn’t tell us you only attended on the weekend.
The affected institutions include London Met, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes, among others. These courses featured in-person instruction on weekends and, in some instances, online learning during the week. Students had enrolled in these programs and secured loans for living expenses, with some also receiving childcare grants.
The Department for Education attributed the situation to “incompetence or abuse of the system,” while the involved universities, through a joint statement via Universities UK, suggested the problem arose from an abrupt government decision and contemplated a legal challenge.
Maintenance loans, which cover living costs like accommodation and food, are distributed in instalments to students. Unlike tuition loans, which go directly to universities, maintenance loans are paid directly to the student. Repayment begins after completing their degree and earning above a certain income threshold.
Childcare grants, which are not repayable for eligible students, were also part of the financial support some received. However, the SLC advised students to seek additional assistance if repayment would cause financial strain, noting that universities might offer support.
Khawaja Ahsan, who recently finished his first year of a BSc in cyber security at the University of West London, had been granted a maintenance loan and childcare support totaling £14,335. He expressed feeling “betrayed and massively let down,” as his part-time work with his wife left them unable to cover the repayment.
A reprieve was granted to a small group of students, with the SLC retracting its decision and restoring their eligibility. These students were pursuing a four-year BSc in acupuncture, which included 25 days of hands-on clinic experience annually. Two weeks prior, they were told they needed to repay £37,000 immediately while managing their studies in a minimum-wage job, leading one woman to break down in tears during a conversation with the BBC.
Almost all the remaining 22,000 students continue to struggle with repaying substantial amounts. The National Union of Students reports that many are given mid-April deadlines to decide whether to continue their studies, with some universities attempting to adjust schedules by adding weekday classes or transfers.