22,000 students told to pay back ‘mis-sold’ maintenance loans
22,000 Students Told to Repay ‘Mis-Sold’ Maintenance Loans
Over 22,000 students are being asked to return financial aid they received erroneously, as the Student Loans Company (SLC) and their universities informed them their courses were ineligible for maintenance support. The affected students, enrolled in weekend-based programs, were sent correspondence stating their studies did not meet the criteria for loans or childcare grants. A letter from the SLC, reviewed by the BBC, noted that the university had provided inaccurate details, failing to disclose that the student only attended classes on Saturdays.
Eligibility and Financial Impact
Maintenance loans, designed to cover living expenses like rent and food, are distributed in installments and assessed based on household income. Unlike tuition fees, which are paid directly to institutions, these funds go to the student. The SLC now requires repayment of any overpaid amounts, potentially affecting those who had signed up for courses with both in-person weekend sessions and weekday online learning. Some students also received childcare grants, which are non-repayable.
“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, describing the emotional toll on affected students.
University and Government Responses
Institutions involved, including London Met, Bath Spa, and Oxford Brookes, have issued a joint statement attributing the error to a sudden government policy change. They are exploring legal options to challenge the decision. Meanwhile, the Department for Education pointed to student “incompetence or abuse of the system” as the cause. A handful of students, studying a four-year BSc in acupuncture with 25 days of clinic training annually, recently secured a temporary relief from the SLC after a dispute.
Khawaja Ahsan, a student at the University of West London, faces repaying £14,335—comprising a maintenance loan and childcare grant—for a cyber security degree. He expressed feeling “massively let down,” noting his family’s part-time work left them unable to cover the debt. Similarly, a woman in her final year of studies broke down in tears, pleading for time to repay £37,000 while working minimum wage.
Many students are still struggling with repayment deadlines, some receiving mid-April cutoffs to decide whether to continue their courses. The controversy highlights how a shift in eligibility rules has upended financial planning for learners, particularly those from working-class backgrounds who rely on part-time jobs to fund their education. The SLC has urged students to seek assistance if repayment causes hardship, but the immediate burden remains significant.
