Students on the South Coast say they feel "hopeless" as maintenance loans withdrawn

We're hearing how a student finance error has impacted students

Students are telling us how maintenance loans being withdrawn have affected them
Author: Freya TaylorPublished 9 hours ago
Last updated 5 hours ago

We're hearing how a huge error which led to thousands of weekend students having their student finances withdrawn is impacting students across the South Coast.

It's after maintenance loans were withdrawn from more than 20 thousand weekend-based students and told they need to repay the money.

Southampton Solent University, alongside eight other UK universities, say they'll now be taking legal action against the Department for Education and the Student Loans Company.

Kacper Pawelek studies Cyber Security at the university's campus in Manchester, and said: "I personally know a couple of students that lost their jobs because the business could not accommodate them.

"So they had to leave a job and I wouldn't say the maintenance loan was the main source of income, but it was a big chunk of household income that all of a sudden was removed.

"That rendered a lot of people in financial detriment."

Southampton Solent University say the withdrawal's affected students balancing work, caring responsibilities, and education and that the loans are essential to basic living costs.

Kacper told us how he's finding it.

He said: "At the moment, I'm left with around £200 a month to live on as well as obviously commute to university with extra days.

"Petrol is expensive, so we're talking about £50 a month extra, and then that brings me down to £150 for food.

"I don't think that's feasible."

Southampton Solent University say they're working with students to support them.

A Southampton Solent University spokesperson said: “Southampton Solent University was not aware of this issue prior to the communication from the DfE, and we are extremely concerned that maintenance loan payments to a number of our students have been abruptly blocked, putting them at risk of financial hardship.

“The government’s decision to block some students’ access to maintenance loans has naturally caused concern, and we understand that students want to know what this means for them.

"We are working with our students and the Students’ Union to understand the needs of those impacted and how we can support them.

“This is an evolving situation which the University and its partner are seeking to address urgently with relevant parties such as the Student Loans Company, and we have commenced legal action.”

Southampton Solent University also released a statement on their pre-action letter.

Professor James Knowles, Southampton Solent University: “Universities have faced a prolonged period of inconsistent and unclear advice from the Student Loans Company, creating significant uncertainty for institutions and students alike.

“The decision to block access to student finance, announced with minimal notice, is the latest and most concerning example of this approach and is unjust in its impact on students who are already navigating complex personal and financial circumstances.

“This action runs counter to the government’s stated ambition of supporting flexible education routes that reflect the realities of modern learners’ lives.

"At a time when the UK urgently needs to upskill and reskill its workforce, restricting access to finance risks undermining opportunities for individuals and dampening progress towards national economic goals.”

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.”

Student Loans Company have also issued a response.

A spokesperson for SLC said: “The Department for Education (DfE) and the Student Loans Company (SLC) are clear that providers are responsible for ensuring that courses are classified correctly and that student-facing information must reflect accurate attendance requirements, including weekday attendance where this is a condition of maintenance support.

“The specific regulation has been in place since 2011, and as per the Office for Students’ conditions of registration, all providers are required to adhere to these rules and ensure that courses are correctly designated. SLC’s clear role is to administer Government policy and regulations.

"In this case, we have acted urgently as requested by Government in order that public funds were not paid out in respect of courses that were incorrectly designated by certain providers.

“DfE wrote to a small number of higher education providers (HEPs) on 23 March, as they had incorrectly categorised courses that are distance learning. DfE urgently requested that these providers work with SLC to correctly categorise the courses to enable the reassessment of students’ entitlement in line with the Government’s student finance regulations.

“Following this instruction from DfE, SLC has written to approximately 22,000 customers to inform them of the error made by the providers and advised of the steps that are being taken to correct this.

“We fully appreciate students will be concerned about this action, however SLC is required to ensure that public money is used to support student finance as set out in the student finance regulations.

"DfE has made clear to HEPs it is their responsibility to support the students and provide financial hardship support.

"Following the courses being correctly classified and students being advised of their reassessed entitlement, customers will be able to make arrangements with SLC to ensure they are supported through this process, including affordable repayment plans being put in place where appropriate.”

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