Nine universities start legal action over student loan error row

Nine universities start legal action over student loan error row6 minutes agoShareSaveAdd as preferred on GoogleBranwen JeffreysEducation EditorKoldo Studio / Getty ImagesNine 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 the Student Loans Company had decided 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 some letters have described as an "accelerated" timeframe.This is different from normal repayment, which for Plan 5 loans issued in England since 2023 is at a rate of 9% of graduate earnings over a threshold of £25,000 for up to 40 years.Now nine of the more than 20 institutions involved have begun legal action against the government to challenge that decision.In a statement they said the decision was taken with "minimal notice" and "has caused serious financial distress for affected students" with some considering leaving their course...