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Student nurses to receive hundreds of pounds after loan overpayment error

Students said handing back the cash might force them to drop out: PA
Students said handing back the cash might force them to drop out: PA

Student nurses who had loans and grants cut off or reduced due to administrative errors are to be compensated with payments of up to £1,000 each.

More than 800 nursing students were told they would no longer receive payments they had been anticipating next term after the Student Loans Company (SLC) realised it had overpaid them in error.

Students across 20 universities were given between £600 and £6,000 too much – and when the problem came to light, many said they faced the prospect of dropping out of courses if they were forced to hand it straight back.

Following pressure from trade unions and professional bodies, the government will now offer additional payments of up to £1,000 and set up a deferred repayment scheme for the funds.

On Monday, a letter to the education secretary, coordinated by the Royal College of Nursing (RCN), said that it had received a “huge volume of calls” from “worried and distressed students”.

The Department for Education (DfE) has now said that affected nursing students will be able to apply for the additional maintenance support from the SLC until the end of the academic year.

Meanwhile, the SLC has agreed to defer the recovery of overpaid funds until affected students have finished their courses and can afford to repay.

However Janet Davies, chief executive and general secretary of the RCN, has said that the government’s measures do not “go anything like far enough”.

She said: “Student nurses will still struggle to pay bills and childcare costs and they must not be forced to turn to loan sharks or even quit their studies as a result.

“This was not a problem of their making and we will not let them pay the price. The overpayment mistakes must be written off and they need money this month without a bureaucratic nightmare.”

Ms Davies added: “This announcement lacks detail and we will keep asking the difficult questions until students have the answers.”

On the announcement, Sam Gyimah, universities minister, said: “My priority has been to ensure none of the affected student nurses should suffer hardship as a result of an administrative error.

“These short-term, practical steps will provide immediate help for those who need it so they can concentrate on their studies and their future careers without concern.”