Leeds Trinity students among 22,000 told to repay 'mis-sold' loans and grants
Students at Leeds Trinity and 14 other universities and colleges have been told they must repay student maintenance loans and grants after they were reportedly paid out in error.
More than 20,000 students across the UK have received letters from the Student Loans Company (SLC) or their university stating they were given maintenance loans and childcare grants for weekend‑only or predominantly weekend courses, despite those courses never being eligible for such funding under student finance rules.
According to the BBC, one letter from the SLC claims the university provided inaccurate information about students’ attendance. The letter states: “Unfortunately, they (universities) didn't inform us you only attended on weekends,” and adds that any “over‑payment” will have to be repaid. Some letters demanded repayment immediately, with sums in some cases exceeding £14,000.
It is understood that around 22,000 students studying at 15 universities - including Leeds Trinity, London Metropolitan, Bath Spa, Southampton Solent and Oxford Brookes - are affected.
All of the courses involved had in‑person teaching at weekends, with some also including online learning during the week. Students enrolled on these courses took out maintenance loans to cover living costs, and in some cases received additional childcare grants.
In a joint statement issued through Universities UK, Leeds Trinity and several other institutions said they are “extremely concerned” that loan payments have been “abruptly blocked” and are working together to challenge the decision by the Department for Education and the SLC.
“We are extremely concerned that thousands of maintenance loan payments to students across the country have been abruptly blocked,” they said.
“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 for, all students who may be affected is our primary focus.”
A small number of repayment demands have been reversed after course eligibility was clarified, the BBC reports.
Education Secretary Bridget Phillipson has said affected students should be supported by their universities, including through hardship funds where necessary.
She said: “Too many organisations have let their students down, through either incompetence or abuse of the system. Universities must take immediate action to support students who will face financial difficulties as a result."
Maintenance loans are means‑tested based on household income and are paid in instalments to cover living costs such as food and accommodation. Repayments normally begin once graduates are earning above a certain threshold.
Regulators have said students are in this position through no fault of their own.
In response to the Department for Education and SLC’s actions, the National Union of Students (NUS) has launched a campaign opposing the measures, warning they will have a “massive” financial impact on students who have “done nothing wrong at all”.
Public trust in the student finance system is at an all‑time low, NUS president Amira Campbell claimed. She added: “Students take on a massive debt to invest in their futures. They trust the government, the Student Loans Company and their universities to handle everything correctly.
“Now that trust has been broken, mistakes have been made, and once again students are being made to bear the brunt of it.
“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 for Education and Student Finance England could be plunging 22,000 students, and their families, into poverty.
“A government that prides itself on supporting parents through funded childcare is now taking away childcare grants from students who are trying to better themselves and their families.”
Leeds Trinity Students’ Union has been approached for comment.