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 are being asked to repay maintenance loans and grants they were incorrectly awarded, according to new reports. The affected individuals, enrolled in weekend-based programs, received letters from the Student Loans Company (SLC) or their institutions stating that their courses were not eligible for such financial support. One SLC letter, shared with the BBC, pointed out that the university submitted inaccurate details and “failed to inform us that attendance was limited to weekend sessions.” It emphasized that any “over-payment” would need to be settled immediately.
Eligibility and financial impact
The BBC understands that courses at 15 universities and colleges—including London Met, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes—are impacted. These programs involved in-person instruction on weekends and, in some cases, online learning during the week. Students had enrolled in these courses and taken out loans for living expenses, with some also receiving childcare grants that do not require repayment.
“They’re worried, they’re not sleeping, they don’t know where they’re going to find the money,” said Amira Campbell, president of the National Union of Students.
Universities UK stated in a joint message that the problem originated from a government decision made with little notice, and the affected institutions are contemplating legal action. Meanwhile, the Department for Education attributed the issue to students’ “incompetence or misuse of the system.” Maintenance loans are distributed in installments to cover living expenses like housing and meals. They are assessed based on household income, with payments going directly to students rather than universities. Repayments begin once students complete their degrees and earn above a certain income level.
Franchise deals and student responses
Several instances involve degrees offered through franchise arrangements, where a primary university partners with a smaller entity to manage course delivery. The SLC advised students to seek additional assistance if repayment would create financial strain, noting that universities might offer support. Khawaja Ahsan, who recently finished the first year of a BSc in Cyber Security at the University of West London, is now responsible for repaying £14,335. He noted feeling “betrayed and massively let down” as he and his wife work part-time and lack the funds for a lump sum payment.
Campbell highlighted that many of these students work during the week to pursue “better future careers” and that many come from working-class backgrounds, struggling to access large sums quickly. Late on Wednesday, a group of students received temporary relief after the SLC reversed its decision, reinstating their eligibility for payments. These students, pursuing a four-year BSc in acupuncture, included 25 days of clinical practice annually alongside weekend classes.
A woman, who had nearly completed her final exams, was initially ordered to repay £37,000 while supporting herself via a minimum-wage job. She wept repeatedly, requesting anonymity due to the uncertainty, saying, “The stress is making me ill—I don’t have that money.” Most of the remaining 22,000 students are still working to repay substantial amounts. According to the NUS, some universities have imposed mid-April deadlines for students to decide if they will continue their courses.