Nine universities launch legal action against government over student loan error
Universities across the country have taken legal action against the government demanding repayment of maintenance loans and grants mistakenly awarded to 22,000 students.
Bath Spa University, Southampton Solent University and London Metropolitan University are among nine institutions warning that the “sudden” decision was due to the Student Loans Corporation’s (SLC) failure to provide clear and consistent guidance.
Thousands of students attending weekend courses received a letter from the SLC stating that they were classed as distance learning students and were therefore not eligible for maintenance loans or childcare grants and had to pay the money back.
Professor Georgina Andrews, of Bath Spa University, said: “The Department for Education and the SLC say they want to prioritize the needs of students but their actions have penalized the most vulnerable people in our society who are trying to improve their lives through education.
“It is untenable for individuals to suffer through what is clearly a systemic failure of the SLC. Universities are acting in good faith by following the guidance the SLC has provided over a number of years.”
The group of universities, which have co-signed the official legal letter, understand that 22,000 students studying at more than 20 universities are affected. Other universities involved in the legal action did not go public.
Professor Julie Hall, vice-chancellor of London Metropolitan University, said: “We are calling on the Department for Education to address inconsistencies in its guidance on face-to-face teaching. Students should not be forced into financial crisis due to technical reclassifications and a lack of common thinking between different systems of government. They should not be penalized for changes to legislation that are completely beyond their control.”
The Department for Education and the SLC described the change in policy as a mistake made by universities in classifying their courses.
The National Union of Students (NUS) is presenting a petition with more than 13,000 signatures to the DfE on Thursday.
Deputy chief executive Alex Stanley said: “Students are bearing the brunt of failed communication between the Student Loans Corporation and their university.
“These students are investing in their future by studying every weekend as well as caring or working. They trusted the government, the Student Loans Corporation and their universities to get things right: now trust has been broken, mistakes have been made and students are once again faced with the brunt of it.
“Regardless of where the blame lies, the immediate solution would be for the Secretary of State to use the discretion he has in the regulations and stop the immediate withdrawal of payments for these students so they are not pushed into poverty. There is an opportunity here to stand by the promises this government has made to provide opportunities for everyone.”
Education minister Bridget Phillipson said: “I have long been clear about our commitment to strictly enforcing university franchising regulations that do not serve their students and abuse the system. “I will always prioritize protecting students and securing taxpayers’ money.
“This is not the students’ fault. Too many organizations have failed their students, either through incompetence or abuse of the system. Many of these organizations lack the governance and oversight necessary to properly implement clear guidance. Others have used this gap as another opportunity to misuse public money. Either way, this is not the standard I expect from our world-class university sector.”
“Universities must act urgently to support students who will face financial difficulties as a result.”
