Major scandal hits universities as 22,000 made to pay back as much as £14k in 'mis-sold' student loans

Joe Sledge
Thu, 09 Apr 2026 12:18:44 +0000

More than 22,000 students in England have been told they must repay maintenance loans and childcare grants issued in error for weekend-based university courses.

Learners across 15 universities, including London Metropolitan, Bath Spa, Leeds Trinity, Southampton Solent and Oxford Brookes, were informed their programmes did not qualify for the financial support they had received.

The Student Loans Company (SLC) said universities had incorrectly classified the courses, with correspondence stating institutions failed to disclose that students “only attended on the weekend”.

The loans body said any overpayments must now be returned.

TRENDING

Stories

Videos

Your Say

Courses involved combined face-to-face weekend teaching with, in some cases, online learning during weekdays, the BBC reported.

Khawaja Ahsan, who completed his first year studying cyber security at the University of West London, said he has been asked to repay £14,335 in maintenance loans and childcare support.

He said: "I feel betrayed and massively let down", and that he and his wife both work part-time and cannot afford to repay the sum in one payment.

Owen Dixon, Founder of Best Student Halls, said: “For students who have received these letters, the immediate priority is to gain a clear understanding of their situation.

"They should contact both their university and the Student Loans Company to confirm what has been classified as an overpayment, how it has arisen, and whether there is a formal review or appeals process available.

He added: “At a time when there is already significant debate around repayment thresholds and the long-term affordability of student loans, this adds to a broader sense of instability for current and prospective students."

The president of the National Union of Students (NUS) Amira Campbell added: "They're worried, they're not sleeping, they don't know where they're going to find the money."

She also said many of those affected come from working-class backgrounds and chose weekend study to allow them to continue working.

Universities have criticised the handling of the situation, issuing a joint statement through Universities UK.

They said they were “extremely concerned” by the sudden decision to block maintenance loan payments and described the approach as “abrupt”.

LATEST DEVELOPMENTS

Student loan repayment changes confirmed after Rachel Reeves faced mounting pressure

Student loans act as a 'lifelong tax blocking young from property ladder'

Rachel Reeves: Student loans are 'broken' but 'not a priority' as debt piles at £482 a second

The institutions said they are seeking urgent clarification and that many are pursuing legal advice, adding that supporting affected students remains their priority.

Some universities are attempting to introduce weekday teaching or transfer students onto alternative courses to maintain future eligibility for support.

However, these measures do not address existing debts, with students still expected to repay funds already received.

The National Union of Students (NUS) said many students face mid-April deadlines to decide whether to continue their studies.

Education Secretary Bridget Phillipson said: "This is not students' fault. Too many organisations have let their students down, through either incompetence or abuse of the system."

She also said universities must act quickly to support those facing financial difficulty.

The Government said some institutions failed to follow guidance, while others may have exploited loopholes in the system.

An SLC spokesman said a small number of providers had incorrectly classified distance learning courses and are now working with the Department for Education to reassess eligibility.

Late on Wednesday, some students enrolled on a four-year acupuncture degree were told they would remain eligible for support, although most affected learners continue to face repayment demands.