22,000 students told to pay back ‘mis-sold’ maintenance loans
22,000 Students Told to Repay ‘Mis-Sold’ Maintenance Loans
More than 20,000 students have been notified that they were awarded maintenance loans and grants erroneously, requiring them to return the funds promptly. These individuals enrolled in weekend-based courses, and letters from the Student Loans Company (SLC) or their institutions claimed their programs were ineligible for financial aid. One such letter, reviewed by the BBC, highlighted that the university provided inaccurate details, failing to inform the student that their attendance was restricted to weekends. It emphasized that any excess payments would need to be reclaimed.
The BBC identified 15 universities and colleges, including London Met, Bath Spa, and Southampton Solent, as affected. These institutions offered in-person classes on weekends and some blended learning during weekdays. Students secured loans and, in certain cases, childcare grants, expecting financial support for their studies. In a shared statement through Universities UK, the involved institutions cited a government decision as the root cause, suggesting they may pursue legal action. Conversely, the Department for Education attributed the mistake to students’ “incompetence or abuse of the system.”
Maintenance Loans and Eligibility
Maintenance loans are disbursed to students in regular installments to cover daily expenses like housing and meals. They are means-tested, considering household income. Unlike tuition loans, which go directly to universities, maintenance funds are given to students. Repayment begins once graduates earn above a specified income threshold. However, childcare grants—eligible for some students—remain unpaid.
For students over 25, loan assessments depend on their personal income. The maximum maintenance loan for a full-time student in England this year is £10,473. Amira Campbell, president of the National Union of Students, described the impact as devastating, noting that affected students often worked part-time to finance their education. She highlighted their struggles to repay large sums quickly, especially those from working-class backgrounds.
“They’re worried, they’re not sleeping, they don’t know where they’re going to find the money,” Campbell said.
Khawaja Ahsan, a recent graduate from the University of West London, received a maintenance loan and childcare grants totaling £14,335. Now, he may have to return the full amount, despite working part-time with his wife. “I feel betrayed and massively let down,” he remarked, stressing the financial strain of repaying a lump sum.
Recently, a small group of students secured temporary relief as the SLC reversed its stance, restoring their right to receive payments. These students are pursuing a four-year BSc in acupuncture, which combines weekend classes with 25 days of clinical training annually. Two weeks prior, they were given a final deadline to repay £37,000, with one student breaking down in tears, requesting anonymity due to uncertainty. “The stress of it is making me ill,” she said, explaining her reliance on a minimum-wage job.
Despite the reprieve, the majority of the 22,000 students remain in financial turmoil. Universities have set mid-April as a cutoff for students to decide whether to continue their courses. Some institutions are proposing additional weekday classes or course transfers to address the issue, though many are still scrambling to manage repayment obligations.