More than 20,000 students in England have been told they must repay maintenance loans and childcare grants — in some cases reaching up to £30,000 — after being informed they were never eligible for the funding they received. The issue emerged following correspondence from the Student Loans Company (SLC) and universities stating that course structures had been incorrectly recorded, particularly for programmes delivered primarily at weekends. As a result, payments have been stopped and repayment requests issued for what officials describe as “over-payments”. The situation affects students across multiple institutions and has triggered responses from universities, government and student bodies — reported The WP Times, citing The Independent.
According to the available information, the core issue relates to eligibility rules for maintenance loans, which are typically granted to students on courses meeting specific attendance and intensity criteria. In this case, some courses — particularly those involving weekend in-person teaching combined with limited weekday online sessions — were later assessed as not meeting those requirements. Letters sent to students indicate that the discrepancy originated from how course details were submitted. One such communication stated: “Unfortunately, they didn’t tell us you only attended on the weekend.” The same correspondence confirmed that any identified “over-payment” would need to be repaid.
Approximately 22,000 students are understood to be affected. The programmes in question were offered across at least 15 universities and colleges, including London Metropolitan University, Bath Spa University, Leeds Trinity University, Southampton Solent University and Oxford Brookes University. Many of these courses were delivered through franchising arrangements, where universities partner with external providers to offer teaching.
Maintenance loans are paid directly to students to cover living costs such as accommodation, food and transport, and are typically distributed in instalments aligned with academic terms. Childcare grants may also be provided in certain cases. Both forms of support contribute to a student’s overall funding package. Several universities, through Universities UK, stated they were “extremely concerned” that maintenance loan payments had been “abruptly blocked”. Institutions have said they are seeking clarification from the government and reviewing the situation, with some also considering legal advice.
The UK Department for Education confirmed that the issue arose from incorrect registration of course types by providers. It noted that some of the affected courses were part of franchised models, which have been subject to increased regulatory attention. The government previously announced measures to tighten oversight of such arrangements, citing risks related to compliance and misuse of public funding. Education Secretary Bridget Phillipson said: “This is not students’ fault. Too many organisations have let their students down, through either incompetence or abuse of the system.” She also stated that some organisations “lack the necessary governance and oversight to properly implement clear guidance.”
The National Union of Students commented on the situation through its president Amira Campbell, who said: “The government approved students for maintenance loans and childcare grants and now they’re withdrawing them half-way through the year and making those students pay them back.” An online petition opposing the repayment requests has gathered close to 20,000 signatures. At the same time, it is understood that payments to affected students have been halted while the issue is being reviewed.
The developments follow a broader policy focus on the regulation of franchised higher education provision in England. In recent years, the number of such arrangements has increased, prompting reviews into how courses are classified, funded and monitored within the student finance system.
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