Universities across the country have launched legal action against the government after it demanded 22,000 students repay maintenance loans and grants that were made in error.
Bath Spa University, Southampton Solent University and London Metropolitan University are among the nine institutions that have warned the “abrupt” decision stems from a failure by the Student Loans Company (SLC) to provide clear and consistent guidance.
Thousands of students studying weekend courses received a letter from the SLC to say they were classified as distance learning students and were therefore not eligible for maintenance loans or childcare grants, and had to repay the money.
Professor Georgina Andrews, vice-chancellor of Bath Spa University, said: “The Department for Education (DfE) and SLC state they want to prioritise the needs of students, but their actions have punished those who are the most vulnerable in our society, who are trying to better their lives through education.
“It is indefensible that individuals are suffering for what is clearly a systemic failure by the SLC. Universities have been acting in good faith, following guidance provided by the SLC over several years.”
The group of universities that have co-signed the formal legal letter understand 22,000 students studying at more than 20 universities are affected. The other universities involved in the legal action have not gone public.
Professor Julie Hall, vice-chancellor of London Metropolitan University, said: “We call on the Department for Education to resolve the inconsistencies in their guidance regarding in-person teaching. Students should not be forced into financial crisis because of technical reclassifications and a lack of joined-up thinking between different government systems. They must not be penalised for regulatory shifts that are entirely outside of their control.”
The Department for Education (DfE) and SLC described the change in policy as an error by universities when classifying their courses.
The National Union of Students (NUS) is presenting a petition with more than 13,000 signatures to the DfE on Thursday.
NUS vice president Alex Stanley said: “Students are bearing the brunt of failed communications between the Student Loans Company and their universities.
“These students are investing in their futures by studying each weekend, alongside caring or work. They trusted 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 made to face the brunt of it.
“Regardless of where any blame lies, the immediate solution would be for the secretary of state to use the discretion she has in the regulations, and stop the immediate clawback of these students’ payments so that they are not plunged into poverty. She has an opportunity here to stand by the promises made by this government to ensure opportunities for all.”
Education secretary Bridget Phillipson said: “I have long been clear about our commitment to crack down on university franchising arrangements that do not deliver for their students and abuse the system. I will always prioritise protecting students and safeguarding taxpayers’ money.
“This is not students’ fault. Too many organisations have let their students down, through either incompetence or abuse of the system. 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.
“Universities must take immediate action to support students who will face financial difficulties as a result.”
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