More than 20,000 students told they must pay back loans of up to £30k after funding blunder
More than 20,000 students have been told they must repay university maintenance loans and grants after they were reportedly awarded in error.
Students have received letters from the Student Loans Company (SLC) or their university stating that they were never eligible for maintenance loans or childcare grants because they were studying on weekend courses.
In a letter reportedly sent by the SLC, a student was told that their university had given them false information: “Unfortunately, they did not tell us that you only attend on weekends.”
It adds that any “overpayment” will have to be repaid, the BBC reports. It is understood that payments to affected students have also been suspended.
The broadcaster found that courses at 15 universities and colleges were affected, including London Met, Bath Spa, Leeds Trinity, Southampton Solent and Oxford Brookes.
While each of these provided on-site training on weekends, some also had online sessions during the week. Students who attended this course received care loans for living expenses and, in some cases, grants for childcare.
It is understood that around 22,000 students are affected by the issue.
Maintenance loans are paid to students to cover expenses such as accommodation and food during their studies. It is usually paid in installments in accordance with academic requirements. Unlike student loans, which are paid directly to universities, maintenance loans are paid to students. Both contribute to the same overall student debt pile.
In a comment through representative body Universities UK (UUK), some institutions said they were “extremely concerned” that thousands of maintenance loan payments were “suddenly blocked”.
They add that they are seeking clarification from the government and are seeking legal advice as many focus on supporting students. Not all those involved are UUK members.
The Department for Education confirmed that the issue was caused by these providers incorrectly recording the type of course their students were attending.
He adds that the weekend courses affected are often franchised, with universities subcontracting courses to external providers. Last year, the government announced it was tightening the rules on these arrangements, citing concerns about fraudulent activity.
Amira Campbell, president of the National Union of Students (NUS), said: “This is a scandal. The government approved maintenance loans and childcare grants for students and now they are withdrawing them halfway through the year and making students pay back.”
The NUS petition protesting the decision was signed by almost 20,000 people.
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 through incompetence or abuse of the system. Many of these organizations lack the management and oversight necessary to properly implement clear guidance.
“Others have used this loophole 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.”
A spokesman for the SLC said: “A small number of higher education providers incorrectly classified courses that were distance learning. The Department for Education has requested that providers work with the SLC to enable us to reassess authorization in line with student finance regulations.”
