Nine universities have launched legal action against the government after 22,000 students were told to repay maintenance loans and grants they received in error. The institutions, including Bath Spa University, Southampton Solent University, and London Metropolitan University, argue that the Student Loans Company (SLC) failed to provide clear guidance.
The students, who were studying weekend courses, were reclassified as distance learners and deemed ineligible for the financial support. The universities claim they followed SLC guidance in good faith and that the sudden demand for repayment penalises vulnerable students.
Professor Georgina Andrews of Bath Spa University called the situation 'indefensible', stating that students are suffering due to a systemic failure by the SLC. Professor Julie Hall of London Metropolitan University urged the Department for Education to resolve inconsistencies in guidance, warning that students should not face financial crisis because of technical reclassifications.
The Department for Education and SLC maintain that the error was caused by universities misclassifying their courses. Education Secretary Bridget Phillipson said she is committed to cracking down on university franchising arrangements that abuse the system, but acknowledged that the situation is not students' fault.
The National Union of Students is presenting a petition with over 13,000 signatures to the DfE, calling for an immediate halt to the clawback of payments. NUS vice president Alex Stanley said students trusted the system and are now bearing the brunt of failed communications.
