Students Told to Repay Maintenance Loans and Grants
More than 20,000 students have been informed that they were mistakenly awarded maintenance loans and childcare grants and are now being required to repay these funds immediately.
These students, all enrolled in weekend courses, received letters from the Student Loans Company (SLC) or their universities indicating that their courses were never eligible for maintenance loans or childcare grants.
One letter from the SLC, reviewed by the BBC, explained that the student's university provided inaccurate information and "unfortunately, they didn't tell us you only attended on the weekend." It further stated that any "over-payment" must be repaid.
The BBC has learned that courses at 15 universities and colleges, including London Metropolitan University, Bath Spa University, Leeds Trinity University, Southampton Solent University, and Oxford Brookes University, are affected.
These courses involved in-person teaching on weekends, with some also offering online learning during weekdays.
Students enrolled in these courses took out maintenance loans and, in some cases, childcare grants.
In a joint statement issued through Universities UK, the institutions involved told the BBC that the issue originated from an "abrupt" government decision and that they are considering legal action.
However, the Department for Education stated that students had been let down due to "incompetence or abuse of the system."
'Devastated and worried'
Maintenance loans are disbursed in instalments to students to cover living expenses such as accommodation and food. These loans are means-tested based on household income. Unlike tuition loans, which are paid directly to universities to cover course costs, maintenance loans are paid directly to students.
Students begin repaying both tuition and maintenance loans after completing their degrees and earning above a specified income threshold.
Some affected students also received childcare grants, which, for eligible students, do not require repayment.
In some cases, the degrees are delivered under franchise agreements, where the degree-awarding university contracts smaller organizations to deliver the course.
The SLC advised students to seek additional support if repayment would cause "financial difficulties" and noted that universities might be able to offer assistance.
Amira Campbell, president of the National Union of Students (NUS), described students as "devastated."
"They're worried, they're not sleeping, they don't know where they're going to find the money,"
she said.
'I feel betrayed'
Khawaja Ahsan recently completed the first year of a BSc Cyber Security degree at the University of West London, which offers a Saturday intensive option for working students.
Alongside a maintenance loan, Ahsan received childcare support for his three children as a grant, totaling £14,335, which he may now be required to repay.
"I feel betrayed and massively let down,"
he said, adding that he and his wife work part-time and do not have the funds to repay a lump sum.
Students over 25 are assessed for maintenance loans based on their own income and may apply for additional grants. The maximum maintenance loan for a full-time student living at home in England this year is £10,473.
Campbell noted that many affected students work during the week to secure "bigger and better jobs in their future."
She described many as coming from working-class backgrounds and being unable to find large sums of money on short notice.
Reprieve for some
Late on Wednesday, a small number of students received a reprieve when the SLC reversed its decision and reinstated their eligibility for payments.
These students are enrolled in a four-year BSc in acupuncture, which includes weekend teaching and 25 days of clinical hands-on experience annually.
Two weeks prior, students, some preparing for final exams, were told they would have to repay loans immediately as a lump sum.
Before the college successfully challenged the SLC, one female student, who wished to remain anonymous due to the uncertainty, broke down in tears.
"The stress of it is making me ill, to be honest. I don't have that money."
She faced a demand to repay £37,000 while supporting herself through studies with a minimum-wage job.
Almost all of the other 22,000 students are still struggling with how to repay tens of thousands of pounds.
The NUS reports that many students have been given a mid-April deadline by their universities to decide whether to continue their courses.
Some universities are attempting to add weekday teaching or transfer students to similar courses with weekday modules to maintain future loan eligibility.
However, this does not alter the expectation that loans already disbursed must be repaid following the clarification that these courses were ineligible.
"These students need reassurance that they don't need to suddenly take out major loans or find the funds from anywhere in order to pay back these funds immediately,"
Campbell said.
Institutional and Government Responses
Universities UK, representing the affected institutions, issued a statement expressing they were "extremely concerned" that thousands of maintenance loan payments had been "abruptly blocked."
They stated they are urgently seeking government clarification and that many institutions are pursuing legal advice, with the primary focus on supporting students.
Education Secretary Bridget Phillipson said:
"This is not students' fault. Too many organisations have let their students down, through either incompetence or abuse of the system.
Universities must take immediate action to support students who will face financial difficulties as a result."
The government argues that some institutions failed to implement clear guidance, while others exploited a loophole to misuse public funds.
None of the individual institutions contacted by the BBC provided comments.
A spokesperson for the SLC stated:
"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."
