Politics Home | Students Consider Legal Action After Being Given Loans Worth £190m In Error
3 min read1 hr Students could take legal action after over a dozen universities wrongly classified their courses as being eligible for maintenance loans, leading to thousands being told they owed money. Last week, PoliticsHome revealed that 22,000 students across 15 mostly franchised providers were this year wrongly given an estimated £190m in taxpayers’ money in maintenance loans and grants after their weekend-only courses, which ordinarily are classified as distance learning and not qualifying for maintenance support, were registered as eligible. A letter sent by the Department for Education (DfE), and seen by PoliticsHome, said that the Student Loans Company must seek to “recover previous irregular payments made” from ineligible students, and will not pay their maintenance support further. Franchising allows universities to subcontract teaching and training to other organisations, such as colleges. Responding to the story last week, Education Secretary Bridget Phillipson accused the universities involved of “incompetence” and “abuse of public money”, while higher education bodies pointed to confusion over the student loan regulations. Students whose future maintenance payments will suddenly cease have told PoliticsHome the …









