More than 20,000 students have been informed they must repay university maintenance loans and grants after reportedly receiving them in error.
The students received letters from the Student Loans Company (SLC) or their university, indicating that they were never eligible for maintenance loans or childcare grants due to attending weekend courses.
One letter reportedly sent by the SLC informed a student that their university provided incorrect information, stating: “unfortunately, they didn’t tell us you only attended on the weekend.”
It adds that any “over-payment” will need to be repaid, according to the BBC. It is also understood that payments to the affected students have been halted.
Courses at 15 universities and colleges, including London Met, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes, are affected, the broadcaster found.
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Each of these had on-site teaching during the weekends, while some also had online sessions on weekdays. Students on these courses had taken out maintenance loans for living costs, and also grants for childcare in some cases.
Approximately 22,000 students are believed to be affected by the issue.
Maintenance loans are provided to students to cover costs such as accommodation and food while they are studying. They are usually paid in installments that align with the academic terms. Unlike tuition loans, which are paid directly to universities, maintenance loans are paid directly to students. Both add to the same overall student debt.
Delivering a comment through the representative body Universities UK (UUK), some of the institutions expressed being “extremely concerned” that the thousands of maintenance loan payments have been “abruptly blocked.”
The group adds that they are seeking clarification from the government and that many of them are taking legal advice while focusing on supporting students. Not all involved are members of UUK.
The Department for Education has confirmed that the issue has arisen from these providers incorrectly registering the type of course that their students were on.
It adds that the affected weekend courses were often franchised, where universities subcontract courses to external providers. Last year, the government announced it would tighten rules around these arrangements, citing concerns around fraudulent activity.
Education Secretary Bridget Phillipson said: “I have long been clear about our commitment to crack down on university franchising arrangements that do not deliver for their students and abuse the system. I will always prioritize protecting students and safeguarding taxpayers’ money.
“This is not the students’ fault. Too many organizations have let their students down, through either incompetence or abuse of the system. Many of these organizations lack the necessary governance and oversight 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.
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“Universities must take immediate action to support students who will face financial difficulties as a result.”
A spokesperson for SLC said: “A small number of Higher Education providers have incorrectly categorized courses that are distance learning. The Department for Education has requested that providers work with SLC to enable us to re-assess entitlement, in line with the student finance regulations.”
Deputy Editor & UK News
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