'It's a nightmare' – 22,000 weekend students told to repay maintenance loans after courses wrongly classified

MoneySavingExpert.com founder Martin Lewis has called the error an "almighty pig's ear", saying it "shows once again that our student loan system is broken". Martin's argued that affected students shouldn't be penalised, and should instead be allowed to continue repaying their loans as initially agreed.

Students at 15 unis wrongly told they were eligible for maintenance loans

Normally, if you're only studying in-person on weekends, you're NOT eligible for maintenance loans – which are designed to cover living costs and transportation – or targeted grants for childcare costs. You're only eligible for a tuition fees loan to cover learning costs.

However, the Department for Education (DfE) says 15 universities running these types of courses incorrectly classified them as "in-attendance", rather than "distance learning". The DfE would not provide a full list of the universities or programmes involved, but two case studies we've seen evidence from were studying at Southampton Solent University and London Metropolitan University.

Due to the error, students enrolled in these courses applied for and received maintenance loans and childcare grants – about £190 million's worth during this academic year, the Government has confirmed. But they are now being asked to pay them back in full. Maintenance loans of up to £13,762 a year were available to students in the 2025/26 academic year – how much you got depended on where you lived.

'It's a nightmare... we will have to pay for this NOW'

Martin Lewis: 'This is an almighty pig's ear'

The Government says universities must help affected students

Education Secretary Bridget Phillipson wrote to higher education providers in December 2025, warning them that students who only attend courses in-person on the weekend are NOT eligible for maintenance loans. She asked that universities make this "clear to prospective students" and apply "robust attendance policy" to ensure their courses are following the rules.

More recently, Ms Phillipson affirmed that students are not at fault for loans being offered in error. She instead pressed universities to "take immediate action" to support those who will "face financial difficulties" in the aftermath.

Ms Phillipson continued: "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."

A spokesperson from the Student Loans Company (SLC), which administers the loans and grants, also blamed the error on providers: "A small number of Higher Education providers have incorrectly categorised courses that are distance learning. The Department for Education has requested that providers work with SLC to enable us to re-assess entitlement, in line with the student finance regulations."

But there's little guidance on what this means in practice

The SLC told us that affected students will receive communication from it advising if they have an overpayment and what options they have to repay this amount either in full, via an agreed repayment plan or through a deduction from future funding entitlement.

The DfE would not detail any specific guidance for students, instead telling us that students should communicate directly with their universities.

The Office for Students – the independent regulator of higher education in England – told us that education institutions should:

• Offer students support and clearly explain how this will affect them.

• Take steps to prevent students incurring additional costs they weren't expecting when they signed up, including the payment of hardship support where maintenance loan payments have been blocked.

• "Stand ready" to offer appropriate redress, which could include financial compensation where institutions can't agree a way forward with students.

• Ensure any new teaching and learning arrangements work for their students.

Struggling to get support from your uni? Here's what to try

If you're having trouble coming to an agreement with your university, the DfE suggests you try the following:

1. Raise a formal complaint via your university's internal process. To make this process as smooth as possible, it's a good idea to hold on to any emails or letters you've received from the university and the SLC, plus your replies.

2. If this doesn't work, you can escalate your complaint to the independent dispute arbitrator – the Office of the Independent Adjudicator for Higher Education. It's said that the university will typically issue a "Completion of Procedures" letter once it's reached a decision about your initial complaint to it. You will likely need this letter and any relevant documentation to then escalate your complaint – and you should raise your complaint with the Adjudicator within 12 months.

It's still unclear how effective these options will be, or whether they'll help you access the assistance you need, but they're worth trying in the first instance.

'We acted in good faith'

'Trust has been broken, mistakes have been made'

Amira Campbell, president of the National Union of Students (NUS), which represents uni and college students, told MSE the funding error will be "devastating" for students. "They trusted the Government, the Student Loans Company and their universities to handle everything correctly: now that trust has been broken, mistakes have been made, and once again students are made to face the brunt of it," she continued.

The NUS is calling for affected students to continue to receive their "promised" maintenance loans and childcare grants. Over 12,000 people have also signed an NUS petition urging the same – underlining that many of "these students are parents, so their maintenance loans go into supporting not only them but their families".

What do the universities say?

Universities UK, which represents 142 universities across the UK told us it's working with the DfE and SLC to "understand how we can support the students impacted going forwards". It also encouraged those affected to get in touch with their university to "explore their options".

Universities UK also provided MSE with a statement from a group of universities, which blamed the incident on the Government. However, Universities UK would not provide a list of the universities involved in this group. This statement was also shared with the BBC.

The group of universities said: "We are extremely concerned that thousands of maintenance loan payments to students across the country have been abruptly blocked. Many of us are currently working together to take legal advice to challenge the actions of the Department for Education and the Student Loans Company.

"We have raised our concerns with the Department for Education urgently and it is important that this matter is resolved by the relevant agencies with both sensitivity and clarity. While this situation is being reviewed, communication with, and support of, all students who may be affected is our primary focus."