Around 1.1 million students across England and Wales are expected to receive approximately £2.6 billion in maintenance loan payments as they return to university and college campuses in September and October. UK bank account holders have been issued a fresh warning about scams at this time of year, with fraudulent text messages and emails often spiking around payment dates.
Common scam tactics
Messages often claim that a student's loan is suspended, blocked or requires urgent verification. There is often a call for urgent action that tricks people into handing over bank details or passwords.
Arielle Flynn, head of advice at UK Debt Expert, has urged students to take five steps to protect their money from scammers.
Five steps to stay safe
Flynn advised pausing before responding. "With maintenance loans landing in accounts, students are more likely to act hastily if told there is a problem with their money," she said. However, she confirmed that the Student Loans Company (SLC) never asks you to confirm or update personal or financial information by email, text, WhatsApp or social media.
She added: "If you receive an unexpected message, avoid clicking any links and log directly into the official GOV.UK website to check your account status. Messages that demand action within 24 hours to prevent payment delays aim to cause panic. Take time to verify these requests through official channels before sharing any information."
Flynn also warned against sharing too many personal details online. "Posting full names, addresses, dates of birth or course details can expose you to fraud," she said. "Scammers collect this information from public social media profiles to impersonate students when contacting banks or loan providers."
She warned: "Adverts and social media posts offering guaranteed hardship grants or quick financial relief often lead to fraud." She explained that genuine university hardship funds and official grants never require upfront processing fees or account passwords. "Verify any unusual financial offers directly with your university or the named provider," she said.
Flynn also highlighted the risk of money muling. "Criminals often target students with promises of quick payment in exchange for receiving and transferring money through their personal accounts," she explained. "This activity, known as money muling, is illegal. Allowing someone else to route money through your account can result in frozen funds, blacklisting by financial institutions and criminal prosecution. Refuse any requests to transfer money on behalf of someone else."
Managing your money
Finally, Flynn advised students to organise their spending and recognise anything unusual. "Maintenance loans usually arrive in large lump sums, which can make it easy to overspend at the start of term," she said. "Working out your essential costs, including rent, bills, food and travel, can help you understand how much you have available to spend each week."
She concluded: "Keeping track of your spending can also make it easier to spot anything unusual in your account, giving you another reason to regularly check your bank statements."
