Over 22,000 students in the United Kingdom (UK) have found themselves in huge debts after the Department for Education (DfE) and the Student Loans Company (SLC) issued a demand for the immediate repayment of ‘mis-sold’ loans under the maintenance loans and childcare grants.
The order comes after the SLC labelled loans granted to students enrolled in weekend courses as ‘mis-sold’ loans.
The students, primarily consisting of those enrolled in intensive weekend courses, have been told that their previous funding is now being treated as “ordinary debt” rather than income-contingent loans.
This reclassification means thousands of low-income learners are now legally required to start repayment of mis-sold loans which could be up to thousands of pounds, regardless of their current earnings or employment status.
Learners across 15 universities, including London Metropolitan, Bath Spa, Leeds Trinity, Southampton Solent, and Oxford Brookes, were informed that their programmes did not qualify for the financial support they had received.
The SLC explained that the universities had incorrectly classified the courses, with correspondence stating institutions failed to disclose that students “only attended on the weekend”.
The loans body said any overpayments must now be returned.
Pan-Atlantic Kompass reports that the weekend courses involved combined face-to-face weekend teaching with, in some cases, online learning during weekdays.
Khawaja Ahsan, who completed his first year studying cyber security at the University of West London, said he has been asked to repay £14,335 in maintenance loans and childcare support.
Ahsan, who spoke with the press said he felt betrayed after he received the repayment order because of the mis-sold loans.
He said: “I feel betrayed and massively let down”, and that he and his wife both work part-time and cannot afford to repay the sum in one payment.
Owen Dixon, Founder of Best Student Halls, said: “For students who have received these letters, the immediate priority is to gain a clear understanding of their situation.
“They should contact both their university and the Student Loans Company to confirm what has been classified as an overpayment, how it has arisen, and whether there is a formal review or appeals process available.
He added: “At a time when there is already significant debate around repayment thresholds and the long-term affordability of student loans, this adds to a broader sense of instability for current and prospective students.”
The president of the National Union of Students (NUS) Amira Campbell added: “They’re worried, they’re not sleeping, they don’t know where they’re going to find the money.”
She also said many of those affected come from working-class backgrounds and chose weekend study to allow them to continue working.
Universities have criticised the handling of the situation, issuing a joint statement through Universities UK.
They said they were “extremely concerned” by the sudden decision to block maintenance loan payments and described the approach as “abrupt”.
The institutions said they are seeking urgent clarification and that many are pursuing legal advice, adding that supporting affected students remains their priority.
Some universities are attempting to introduce weekday teaching or transfer students to alternative courses to maintain future eligibility for support.
However, these measures do not address existing debts, with students still expected to repay funds already received.
The National Union of Students (NUS) said many students face mid-April deadlines to decide whether to continue their studies.
Education Secretary Bridget Phillipson said: “This is not the students’ fault. Too many organisations have let their students down, through either incompetence or abuse of the system.”
She also said universities must act quickly to support those facing financial difficulty.
The Government said some institutions failed to follow guidance, while others may have exploited loopholes in the system.
An SLC spokesman said a small number of providers had incorrectly classified distance learning courses and are now working with the Department for Education to reassess eligibility.
