University students consider legal action after £190m in maintenance loans issued by mistake

Students are considering legal action after 22,000 people were incorrectly informed that their courses were eligible for maintenance loans, meaning thousands now owe money.

According to PoliticsHome, weekend-only courses, classified as distance learning and not eligible for maintenance support, were registered as eligible. Students were incorrectly given an estimated £190 million for maintenance grants and loans.

In a letter seen by the political news platform, the Department for Education (DfE) said the Student Loans Company must seek to “recover irregular payments made” by ineligible students.

Education Secretary Bridget Phillipson accused the universities involved of “incompetence” and “abuse of public money”, and higher education bodies expressed confusion over the student loan regulations.

The students affected belong to 15 franchised providers, which allow universities to subcontract teaching and training to other organisations, such as colleges.

The students, whose maintenance payments have suddenly stopped, said “the error will leave them owing thousands,” adding they are “considering legal action.”

A Computer Science student of Solent University, taught through franchise partner QA Higher Education (QAHE), said: “I was expecting to repay it [my loan] after graduation according to a plan… However, now I will have to pay it in instalments as Student Finance has told me today that there will be a direct debit set up, and I’m not talking about hundreds of pounds, I’m talking about thousands.

“We’ve raised a petition, we’ve contacted our local MPs, we’ve also contacted [the] National Union of Students (NUS), and we are considering getting a solicitor and taking legal action against the university because this is, I don’t even have any words left, to be honest.”

Vlad Iordan, a Business Management student at London Metropolitan University’s QAHE-run campus in Birmingham, said: “We signed in good faith with the agencies, with the university. The university provided the information to the [student] finance, and finance approved it. I was like, ‘Why should I pay for something that you screwed up?’”

Deputy Vice Chancellor at London Metropolitan University, Nona McDuff, has claimed that the university is taking legal advice, but she was unable to disclose any further details.

She explained: “Our priority remains clear and open communication with all students who may be impacted.”

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Solent University is also “seeking legal advice on the decision by the DfE to require the reclassification of courses as distance learning” and working to support students.

Amira Campbell, President of the NUS, warned that thousands of students could be plunged into poverty if payments stop as planned, pointing out that the funding also included childcare grants for students who have children under 15.

She told The Tab: “Students here have taken on a massive debt to invest in their futures. They trusted the government, the Student Loans Company and their universities to handle everything correctly: Now that trust has been broken, and those same students are caught in the middle of a series of catastrophic errors.

“These are working class students, many of whom are parents, who are using their weekends to gain a degree and invest in their futures. They should not be facing a funding cliff edge because of a mistake or being mis-sold their course. The Department of Education and Student Finance England will be plunging 22,000 students, and their families, into immediate poverty.

“A government that are priding themselves on supporting parents through funded childcare, are now taking away childcare vouchers from students who are trying to better themselves and their families.

“From retroactively and regressively changing the terms of plan two loans, to mis-selling students weekend courses, our trust on the student finance system is at an all time low.”

In a statement to The Tab, a spokesperson for Universities UK, which represents 142 institutions across the country, said: “We recognise how distressing this is for affected students, and we want to reassure these students that universities are considering the different forms of support available.

“We will continue to work collaboratively with the Department for Education and Student Loans Company to understand how we can support the students impacted going forwards, and we encourage those affected to get in touch with their university to explore their options.”

A spokesperson for QAHE said it is “committed to ensuring our students are supported and provided with clear communications about next steps.”

DfE, Solent University, London Metropolitan University and QAHE have been contacted for comment.

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