22,000 students told to pay back ‘mis-sold’ maintenance loans

Eligibility Errors Prompt Repayment Demands

Over 22,000 students are now required to return maintenance loans and grants they received erroneously, facing immediate repayment demands. The affected individuals, enrolled in weekend-based programs, received notifications from the Student Loans Company (SLC) or their educational institutions, clarifying that their courses were not eligible for financial support. One such letter, shared with the BBC, highlighted that the university provided inaccurate data, failing to inform the SLC that attendance was restricted to weekend sessions. The document indicated that any excess funds received must be repaid.

Franchise Deals and Financial Impact

The BBC identified 15 institutions, including London Met and Bath Spa, impacted by this issue. These programs featured in-person teaching on weekends and some online components during weekdays. Students had secured loans for living expenses and, in some cases, childcare grants. The SLC advised affected individuals to seek additional assistance if repayment would cause financial hardship, noting that universities might offer support.

Reactions from Students and Institutions

Universities UK’s collective statement cited the government’s sudden policy shift as the root cause, suggesting potential legal action. The Department for Education, however, blamed the situation on “incompetence or misuse of the system.” The president of the National Union of Students, Amira Campbell, described the fallout as devastating, stating:

“They’re worried, they’re not sleeping, they don’t know where they’re going to find the money,” she said.

Personal Struggles and Recent Relief

Khawaja Ahsan, a first-year BSc cyber security student at the University of West London, now faces repaying £14,335 in total financial aid. He and his wife worked part-time, leaving them unable to cover the lump sum. On Wednesday evening, a small group of students received temporary relief as the SLC reversed its decision, restoring their eligibility for payments. These students are pursuing a four-year BSc in acupuncture, which includes 25 days of clinic-based training annually. Two weeks prior, they were instructed to settle their loans immediately, including those nearing final exams.

Broader Consequences

A woman, who wished to remain anonymous due to uncertainty, was overwhelmed with emotion, pleading not to be identified. She faced a £37,000 repayment request while working in a minimum-wage job. The majority of the 22,000 remaining students continue to struggle with repaying substantial sums. The NUS reported that many have been given mid-April deadlines to decide whether to continue their courses, with some institutions attempting to introduce weekday classes or course transfers.