General4/15/2026•BBC

Nine universities start legal action over student loan error row

Nine universities start legal action over student loan error row

Nine universities have begun legal action against the government in a row over students being asked to repay loans as soon as possible. About 22,000 students in England are caught up in the dispute, after being sent letters saying they were given maintenance loans and childcare grants in error and must immediately pay the money back. The students are all studying weekend courses, which have been suddenly classified as distance learning. The universities in the legal case described the decision as "abrupt" while the National Union of Students urged the government to halt the "immediate clawback" of loans. The government said students had been let down by "incompetence or abuse of the system". The students affected received tuition fee and maintenance loans, and in some cases childcare grants, approved by the Student Loans Company. Some students are just weeks from completing three-year degree courses and were shocked to receive letters from their universities in recent weeks informing them that their courses had never been eligible for funding. While universities have reassured students that repayment plans will take into account their circumstances, it still means repaying on what

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