The issue centers on weekend courses that were incorrectly categorized by universities, leading students to receive loans and grants they were not entitled to. According to Department for Education rules, students attending weekend-only courses are not eligible for long-term maintenance loans to cover living expenses. The Student Loans Company said a small number of institutions had incorrectly categorised courses that are distance learning. Franchise providers incorrectly registered the courses as 'in attendance' courses, allowing students to access loans and grants. Each course had in-person teaching at weekends, with some also having additional online learning during the week. The exact legal basis or regulation that deems weekend courses ineligible for maintenance loans remains unclear, as does which specific 15 universities and colleges are affected.
Education Secretary Bridget Phillipson said the situation is not students' fault. She added that many institutions had let students down through either incompetence or abuse of the system. According to Bridget Phillipson, universities must take immediate action to support students who will face financial difficulties as a result. The move is part of a government crackdown on franchise university courses. In December, the government announced it would require franchise providers to face mandatory regulation by the Office for Students or be cut off from student loan funding.
This is not students' fault.
The Student Loans Company will work with students to put in place affordable repayment plans where appropriate. The SLC has told students to ask for extra help if repayment would cause financial difficulties. The SLC reassured students that universities may be able to offer financial support. What specific affordable repayment plans will be offered to affected students has not been detailed.
Some affected universities said they are extremely concerned by the move and are considering a legal challenge. Supporting impacted students will be the universities' primary focus while the situation is reviewed. The timeline for any potential legal challenge by the affected universities remains uncertain.
Many of these organisations lack the necessary governance and oversight to properly implement clear guidance. Others have used this loophole as another opportunity to abuse public money. Either way, this is not the standard I expect from our world-class university sector.
The National Union of Students has called the situation a scandal that has been devastating for affected students. David Robinson, a nursing graduate, received an email from Edge Hill University saying his postgraduate diploma in adult nursing did not qualify for maintenance loans and he must repay £10,538. Robinson's course was full-time, including several months of clinical placements, but fell on the wrong side of regulations that one-year postgraduate courses are not routinely funded. Robinson is now back working as an NHS nurse. How many students, like David Robinson, are on full-time courses with placements but still deemed ineligible has not been confirmed.