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More than 20,000 students enrolled in weekend courses have recently been informed that they were mistakenly granted maintenance loans and childcare grants. These students now face demands to repay the funds immediately. The Student Loans Company (SLC) and various universities have sent letters stating that the courses these students attended were never eligible for such financial support.
According to a letter from the SLC reviewed by the BBC, inaccuracies arose because universities failed to disclose that the students only attended classes on weekends. As a result, any “over-payment” of loans or grants must be returned. This issue affects students at 15 institutions, including London Metropolitan, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes universities. These courses typically featured in-person teaching over weekends, with some offering additional online sessions during the week.
The students involved had applied and received loans intended to cover living expenses like housing and food, with some also qualifying for childcare grants, which usually do not require repayment. The courses in question, in some cases, are delivered through franchising agreements where a degree-awarding university contracts smaller organizations to provide the instruction. Universities UK has issued a joint statement commenting that the problem arose following an abrupt government decision, with affected institutions considering legal action. However, the Department for Education criticized some universities, claiming students were failed either due to “incompetence or abuse of the system.”
For many students, this news is distressing. Maintenance loans are typically paid in installments and are means-tested based on household income. Graduates begin repaying these loans only after completing their degree and surpassing a specific income threshold. Some affected students, many working during weekdays to improve future job prospects, come from working-class backgrounds and are already struggling with the unexpected financial burden. National Union of Students president Amira Campbell described them as “devastated,” worried about how they will manage to repay the money.
Khawaja Ahsan, a student at the University of West London who just finished his first year studying cyber security, shared his sense of betrayal. He received £14,335 in maintenance loans and childcare grants for his three children but now faces repaying this amount despite working part-time alongside his wife. The SLC has advised those facing repayment difficulties to seek support, with some universities offering assistance.
A small number of students studying a four-year BSc in acupuncture, which combines weekend teaching with practical clinical experience, have successfully had their maintenance loan eligibility restored after initially being told to repay large sums. However, the vast majority of affected students still face significant financial uncertainty. Deadlines set by universities for students to decide whether to continue their courses are approaching, with some institutions trying to modify timetables or transfer students to courses with weekday components to maintain future loan eligibility. Still, students are expected to repay loans already disbursed for courses now deemed ineligible.
Universities UK expressed deep concern about the abrupt blocking of maintenance loan payments and confirmed that several institutions are seeking urgent government clarification and legal counsel. Education Secretary Bridget Phillipson emphasized that the situation is not the students’ fault and called on universities to provide immediate support to those experiencing financial hardship. The government has suggested that some institutions failed to follow clear guidelines or exploited loopholes to claim public funds improperly. The SLC reiterated that a few higher education providers misclassified certain distance learning courses and is working with the Department for Education to reassess students’ entitlements in line with student finance regulations
Read the full article from The BBC here: Read More
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