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Nine Universities Launch Legal Action Over Loan Clawbacks Hitting 22,000 Students

The fight tests whether ministers will use their discretion to pause repayments.

Overview

  • A group of nine universities, which filed a pre-action legal letter Thursday, is challenging the Department for Education and the Student Loans Company over withdrawn support.
  • The Student Loans Company has told about 22,000 students at more than 20 universities that weekend courses count as distance learning, so maintenance loans and some childcare grants must be repaid.
  • Those affected include learners on weekend programmes delivered with QA Higher Education in London, Birmingham and Manchester, where many study while holding jobs or caring for family.
  • Universities say SLC guidance has been unclear for years and argue that weekend, in-person teaching should not be treated as distance learning under the Student Support Regulations.
  • The DfE and SLC blame course misclassification by providers, while Education Secretary Bridget Phillipson says students are not at fault and urges universities to support those now facing financial strain.