Repayment reprieve given to Leeds Trinity students who were issued loans in error

Leeds Trinity University students who were previously ordered by the Student Loans Company (SLC) to repay thousands of pounds in loans and grants, have been granted a reprieve.

Earlier this month, around 22,000 students across 15 universities received letters from the SLC telling them their courses had never been eligible for maintenance loans or childcare grants, and that this funding had been given to them by mistake.

Among those affected were a number of students at Leeds Trinity University, which runs a range of both full-time and part-time courses, some of which take place over weekend sessions.

All of the students contacted by the SLC were studying weekend courses, although some were supplemented by online teaching during the week. These types of courses are commonly offered to permit students to balance their studies with other commitments such as work and childcare. However, SLC regulations classify them as distance learning, meaning they are ineligible for maintenance loans or childcare grants.

As the funding they received in error is classified as an overpayment, the students were informed that they were expected to repay the SLC out of their own pockets. At the same time, their funding was abruptly halted, leaving some struggling to cover costs.

via Geograph Britain and Ireland under Creative Commons Attribution-Share Alike 2.0

Originally, the students were told they had to begin making repayments with immediate effect. However, the government has now announced those affected will be able to repay the loans back through usual student finance route, adding that repayments on grants are being paused until “at least” September.

The National Union of Students has celebrated the decision, saying that it comes as a “huge relief” for the students affected, and emphasising that the new plans for repayment will take “pressure off their mental health.”

Meanwhile, a joint statement issued on behalf of the affected universities has criticised the lack of clarity given to the students regarding the government’s sudden U-turn on the issue.

The statement said: “This announcement appears to be progress, but leaves many more questions than answers. The Government has seemingly confirmed in Parliament its instruction to the Student Loans Company to collect any overpayments through normal student finance repayments, and to pause recoveries of overpaid grants until at least September, while they consider their next steps.

“It is disgraceful that this was announced in Parliament first, before any of the affected students or impacted universities were told. Our students are naturally contacting us with questions, many of whom are among the most vulnerable, many are parents, many are from low-income backgrounds, many chose weekend study precisely because it was the only way they could access higher education around work and family commitments.

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“We urge the SLC to release urgent communications to clarify the specifics of this latest development to reassure students who have been plunged into anxiety and confusion in recent weeks due to contradictory advice and a refusal to answer their customers’ queries.”

via Unsplash

A spokesperson for SLC said: “The Student Loans Company (SLC) has received instruction from Department for Education (DfE) to ensure impacted students repay any overpayment of maintenance loans through income contingent recovery, following a small number of providers incorrectly categorising courses as distance learning.

“We will be writing to students to explain what this means for them and what the next steps are, including their eligibility and entitlement, as well as confirming the repayment process. We are also continuing to work with providers who are in the process of correctly classifying courses.”

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 Department for Education has urged those affected to contact their higher education provider for advice and support on repayments.

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Featured image via Geograph Britain and Ireland under Creative Commons Attribution-Share Alike 2.0