Leeds Trinity University students ordered to pay back maintenance loans given in error

22,000 students across 15 universities are affected

Students at Leeds Trinity University are among 22,000 who have been told to pay back the maintenance loan they received by mistake.

The issue spans 15 universities, including Oxford Brookes, Southampton Solent and London Metropolitan University.

All the affected students were studying weekend courses, some of which were supplemented by online teaching during the week. These courses are commonly offered to permit students to balance their studies with other commitments such as work and childcare.

Leeds Trinity University runs a range of both full-time and part-time courses, with some part-time courses taking place over weekend sessions.

Students reportedly received letters from the Student Loans Company (SLC) telling them that these courses had never been eligible for maintenance loans or childcare grants, but that this funding had been issued to them in error.

As this is classified as an overpayment, the students are now being expected to repay this money out of their own pockets. According to the BBC, they have also had their funding halted by the SLC, leaving some struggling to cover costs and repay what they owe.

The SLC has reassured affected students that they will be supported in the repayment process, with affordable repayment plans being issued where necessary.

Students on distance learning courses are not eligible to receive maintenance loans. According to SLC regulations, weekend-only attendance courses fall into this category.

Education Secretary, Bridget Phillipson, said: “I have long been clear about our commitment to crack down on university franchising arrangements that do not deliver for their students and abuse the system. I will always prioritise protecting students and safeguarding taxpayers’ money.

“This is not students’ fault. Too many organisations have let their students down, through either incompetence or abuse of the system. Many of these organisations lack the necessary governance and oversight to properly implement clear guidance. Others have used this loophole as another opportunity to abuse public money.

“Either way, this is not the standard I expect from our world-class university sector. Universities must take immediate action to support students who will face financial difficulties as a result.”

The impacted universities released a joint statement, saying: “We are extremely concerned that thousands of maintenance loan payments to students across the country have been abruptly blocked.

“Many of us are currently working together to take legal advice to challenge the actions of the Department for Education and the Student Loans Company.

“We have raised our concerns with the Department for Education urgently and it is important that this matter is resolved by the relevant agencies with both sensitivity and clarity. While this situation is being reviewed, communication with, and support of, all students who may be affected is our primary focus.”

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.”

An SLC spokesperson has clarified that the error stems from the higher education providers themselves rather than the SLC. They said: “A small number of Higher Education providers have incorrectly categorised courses that are distance learning. The Department for Education has requested that providers work with SLC to enable us to re-assess entitlement, in line with the student finance regulations.”