More than 20,000 students across the UK have been told they must repay university loans and grants worth up to £30,000, after a major funding error involving weekend courses.
The issue centres on maintenance loans and childcare grants issued through the Student Loans Company, which are now being reclaimed after it emerged that some students were not eligible.
Affected students received letters informing them that their courses did not meet eligibility requirements, as they were primarily delivered at weekends.
One letter reportedly stated: “Unfortunately, they didn’t tell us you only attended on the weekend.”
Students have been told that any “over-payment” must be repaid, with some also seeing their funding abruptly halted.
Around 22,000 students across at least 15 universities and colleges are believed to be affected, including institutions such as London Metropolitan University, Bath Spa University, Leeds Trinity University, Southampton Solent University and Oxford Brookes University.
Many of the courses involved combined weekend in-person teaching with some online weekday sessions.
Maintenance loans, which are designed to cover living costs such as rent and food, are typically paid directly to students and form part of their overall student debt.
Through Universities UK, several institutions said they were “extremely concerned” that payments had been “abruptly blocked”.
Universities are now seeking clarification from the government, with some reportedly taking legal advice while trying to support affected students.
The National Union of Students has strongly criticised the decision.
Its president, Amira Campbell, said: “This is a scandal. 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.”
Bridget Phillipson said the problem arose because some providers incorrectly registered course types, particularly within franchised arrangements.
She said: “This is not students’ fault. Too many organisations have let their students down, through either incompetence or abuse of the system.”
She added that universities “must take immediate action to support students who will face financial difficulties”.
An SLC spokesperson confirmed: “A small number of higher education providers have incorrectly categorised courses that are distance learning.”
The controversy has raised wider concerns about oversight of university franchising arrangements and student finance systems.
With thousands of students now facing unexpected repayments, pressure is mounting on both universities and the government to resolve the issue and protect those affected.