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

The National Union of Students has said that the decision comes as a “huge relief”

2 hours ago

Lucy Eason | News

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

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

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Originally, the students were told they had to begin making repayments with immediate effect. However, the government has now announced that 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, in part, 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.

“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.”

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Several of the affected higher education providers have also spoken out to denounce the SLC’s classification of weekend-only courses as distance learning. A spokesperson for the group said:

“The institutions strongly reject the classification of in-person, timetabled weekend teaching as “distance learning” and argue that the policy not only defies common sense but is also inconsistent with the Student Support Regulations as interpreted and applied since 2011. It makes no sense for face-to-face study delivered on Saturdays and Sundays to be “distance learning” while identical provision during the week is “in-person”.

“The group are dismayed that the DfE and SLC are characterising this change in policy as an error by universities when classifying their courses. Universities have followed and applied the SLC guidance on course classification for years and this recent shift in guidance from DFE and SLC has been implemented inconsistently and without meaningful engagement with the sector.”

The SLC has said that the organisation is “continuing to work with providers who are in the process of correctly classifying courses.”

They added that they will shortly be getting in touch with those affected, “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”.

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

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Lucy Eason | News