About 22,000 Students In England Have Been Told They Must Repay Maintenance Loans
About 22,000 students in England have been told they must repay maintenance loans and childcare grants after a major funding error involving universities and the Student Loans Company.
The affected students, spread across around 15 universities, received official letters stating they were wrongly awarded financial support because their courses were incorrectly classified as eligible for maintenance funding. According to reports, the issue affected students enrolled mainly on weekend-only degree programmes, which under UK student finance rules are treated as “distance learning” and are not eligible for maintenance loans or childcare grants. The Student Loans Company (SLC) said universities mistakenly recorded these students as fully in-attendance learners, leading to around £190 million being wrongly paid out.
As a result, students are now being told to repay thousands of pounds in support they had already received, with some facing immediate repayment demands or revised payment plans.
The situation has sparked widespread concern among students, universities, and education bodies, many of whom argue that the affected learners should not be penalised for administrative errors made by institutions. Several universities have also criticised the handling of the issue, with reports that some are considering legal action against the Department for Education and the Student Loans Company over how the repayment decision was enforced.
Education officials maintain that the rules clearly state weekend-only learners are not eligible for maintenance support, and that institutions failed to comply with reporting requirements.
Student unions have condemned the move, warning it could place significant financial pressure on mature and low-income students who rely on the funding to continue their studies.
Universities are now being urged to provide hardship support and clearer guidance to affected students as discussions continue over possible solutions.
