Bath Spa student faced with £43,000 repayment demand due to loan error

The University is considering legal action over withdrawn student maintenance funding

Bath Spa is one of nine universities considering legal action
Author: Jess PaynePublished 17th Apr 2026

Ana, a business student and mother at Bath Spa University, has been asked to repay nearly £43,000 following a mistake that led to her receiving maintenance loans and childcare support in error.

It follows the sudden withdrawal of maintenance funding from students studying on weekend-based courses.

Around 22,000 students from over 20 institutions have been affected, many of whom rely on the loans to manage their work, education, and caring responsibilities.

“I am really not able to pay,” Ana said about the repayment demand.

"I can’t sleep at night because of this.

“What is going to happen with my academic course? What is going to happen with the money? I’m going to lose both somehow.

“I’m just trying to do what’s best for me and what’s best for my family."

Bath Spa University, along with eight other UK universities, is considering legal action against the Department for Education and the Student Loans Company due to this issue.

The institutions claim that the Student Loans Company delivered inconsistent guidance, and failing to engage meaningfully with the education sector.

The National Union of Students has presented a petition with over 13,000 signatures to the Department for Education, opposing the funding withdrawal.

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.”

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."

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