UK Government Closed After Initial Enquiries Search on PHSO website

Student Loans Company (SLC)

P-004289 · Statement · Decision date: 17 November 2025 · View Student Loans Company scorecard
Complaint (AI summary)
Miss A complained the SLC made her ineligible for student finance and Childcare Grants, and registered her with a fraud prevention service, causing significant stress and impacting her education.
Outcome (AI summary)
Complaint closed. The ombudsman found no indications of maladministration by the SLC after reviewing the evidence, guidance, and legislation.

Full decision details

The Complaint

4.Miss A is complaining to us about the SLC after she was told she was ineligible for student finance, effective from February 2023. In addition, she says the SLC told her she was ineligible for Childcare Grants (CCG) from the start of the 2022/2023 academic year. She also complains that the SLC took steps to register her details with the UK’s fraud prevention service (CIFAS) for a total of six years.

5.Miss A says the SLC have ‘caused immense stress and anxiety’ and says this matter has had a detrimental impact on her mental health and her ability to care for her child. She says she is no longer able to pursue higher education and says the stress has ‘affected my daily functioning’ and left it ‘difficult to focus on my studies and fulfil my responsibilities as a parent’. She is deeply unhappy with the SLC’s actions and would like financial compensation totalling £18,157, which represents one year’s tuition fees and her maintenance loan.

Background

6.Miss A is complaining to us about the SLC and the decision it reached regarding her eligibility for student finance. She applied for, and was granted, student finance for the 2022-2023 and 2023-2024 academic years (AY). Following her start in September 2022 she applied for Childcare Grant (CCG) for both AYs.

7.Her applications were investigated by the SLC’s Financial Crime and Prevention Unit (FCPU) in January 2024, and it concluded the information she had provided was not accurate. As a result, she was made ineligible for support from early February 2023 onwards and ineligible for CCG from the start of the 2022-2023 AY. This meant that she had been overpaid some support, and the SLC asked Miss A to repay this.

8.Miss A appealed this decision in January 2024 with supporting evidence. The SLC reviewed her appeal and documents, and this process took some time. Miss A contacted the SLC in late January 2024 and in early February 2024 and in early March 2024 she was told the appeal was still being investigated. The SLC said it was experiencing high demand due to a large number of appeals.

9.Miss A received an email from the SLC in early April 2024 asking for further information and evidence. The SLC issued its Stage 1 appeal response in late April 2024 and apologised for the delay. The SLC explained that it believed the childcare claims were not true and there had been an overpayment of financial support, which the SLC would recover.

10.Miss A contacted the SLC on the same day and said she disagreed with this decision and said she had provided evidence to support her position. She sent a further communication in late May asking for her complaint to be escalated. The SLC responded in early May, and the Independent Assessor (IA) reviewed her concerns. The IA issued its decision in mid-November 2024 and said it did not uphold her appeal. As Miss A was unhappy with this response she brought her complaint to our Office in February 2025.

Findings

Our view

13.Miss A complained to us about the actions of the SLC and its decision to strip her of her eligibility for student finance. In her correspondence with us she has made clear she is very unhappy with the SLC’s actions. In the interests of remaining concise and customer-focused we will not be producing a detailed timeline of these events as this would be repetitive and both parties involved are familiar with the background of this complaint. Instead, we will be focusing on the main concerns raised with us.

14.The SLC advised us in their response to our information request that the documents it had received from Miss A, and which we have also reviewed, constituted an appeal of a regulatory student finance decision, not an official complaint. This means that it was dealt with under Student Finance England’s (SFE) ‘Appeals Procedure’, which we will refer to as the Procedure. To ensure that we have fairly and objectively considered Miss A’s complaint to us we have reviewed the Procedure to verify for ourselves that it has been correctly applied.

15.The Procedure is available online for members of the public and explains that during this process the SFE will ‘review the decisions made about what and how much student finance you are entitled to’, particularly decisions regarding student entitlement. As explained in its Stage 1 response, Miss A was appealing the decision to strip her of her eligibility for student finance following an investigation by the FCPU.

16.This was done in line with the Education (Student Support) Regulations 2011, which we will refer to as the Regulations. Specifically, s6(5) and s6(6) outlined what may occur if an applicant is deemed to be ineligible for funding. The Regulations state:

‘Period of eligibility 6. (5) The Secretary of State may terminate the period of eligibility where A has shown by A's conduct that A is unfitted to receive support.

(6) If the Secretary of State is satisfied that an eligible student has failed to comply with any requirement to provide information under these Regulations or has provided information which is inaccurate in a material particular, the Secretary of State may take such of the following actions as the Secretary of State considers appropriate in the circumstances: (a) terminate the period of eligibility; (b) determine that the student no longer qualifies for any particular support or particular amount of support; (c) treat any support paid to the student as an overpayment which may be recovered under Chapter 5 of Part 9.’

17.Following an investigation by the FCPU it was decided that Miss A was ‘unfitted’ and therefore her eligibility for student finance was stripped. Both the Stage 1 appeal response, and the IA report indicate that the reason for removing her eligibility was because it was believed her applications were ‘not…accurate and genuine’. The Procedure explains that if an individual is unhappy with the Stage 1 appeal response and the IA response, which Miss A is, then they ‘may wish to seek legal advice on what options are available to you’.

18.The complaint Miss A has brought to us relates to an appeal for a regulatory appeal decision. Unfortunately, we do not have the authority to overturn the decisions reached by the Stage 1 appeal process and the IA. As we have noted in the paragraph above, Miss A may wish to seek independent legal advice to see what options are open to her. We have reviewed what the SLC has done, and we can see that it has acted in line with the Regulations.

19.We know this is very important to Miss A, particularly as she has told us about the SLC decision to place her on the CIFAS database. CIFAS is a fraud prevention service in the UK and allows organisations to exchange details of individuals or companies which may have undertaken fraudulent or suspicious activity. The IA report explained that Miss A had been placed on this database for a period of six years because the SLC concluded that her application for student finance had not been based on accurate facts. Miss A strongly disputes this.

20.As we have stated above, it may be that legal action is the best course of action for Miss A to challenge this going forward. While we appreciate this can be a stressful process, this is likely the only way Miss A can challenge the decision. We considered the decision reached by the SLC and cannot see any indications of maladministration as it followed the relevant guidance and legislation in this case.

21.In addition, Miss A is unhappy that the SLC has opted to try and recover the overpayment. We asked the SLC about this and it said that the recovery of previously paid student finance was undertaken as per the Regulations. In particular, the SLC said that Regulation 6 of the Regulations, which we have provided above, states that, ‘any support paid to the student as an overpayment which may be recovered’.

22.The SLC has investigated Miss A, and it has concluded that she is not eligible for student finance for the reasons above. As the Regulations indicate, any overpayments may also be recovered. We can see from reviewing the relevant documents that there was an overpayment which means the SLC can take steps to recover this.

23.We appreciate this will be very disappointing for Miss A to read. We are sorry to cause her further distress but after reviewing all the relevant information she sent us and the information the SLC provided to us we cannot see any indications of maladministration in the way the SLC has handled her appeal. We are satisfied it has acted in line with the relevant guidance and legislation. Therefore, we will not be taking any further action.

24.We wish her all the best for the future.

Our Decision

1. We have carefully considered Miss A’s complaint about the Student Loan Company (SLC). We can see that Miss A is unhappy with the responses she has received, and we are sorry to read these events have caused such distress.

2-Having considered the evidence available to us, and the guidance and legislation that set out how the SLC should carry out its work, we have decided to take no further action. This is because we cannot see any indications of maladministration by the SLC.

3-We appreciate Miss A feel strongly about the complaint. The complaints we receive give us valuable insight into the organisations we investigate, so we would like to thank Miss A for sharing her experience with us. Our statement below sets out the reasons for our decision.

Other Decisions About Student Loans Company (SLC)

P-005053 · 18 Mar 2026
Ms Y was incorrectly awarded funding by SLC and had her funding withdrawn. She complains about the mistakes it made …
Upheld
P-004980 · 4 Mar 2026
Miss Y complains about the length of time it took student loans company (SLC) to process her disabled student allowance …
Closed After Initial Enquiries
P-004928 · 26 Feb 2026
Ms W complains the SLC withdrew the financial support it awarded her and provided a poor service.
Not Upheld
P-004766 · 2 Feb 2026
Mrs R complains SLC decided she was unfit for the childcare grant and declined her appeal.
Closed After Initial Enquiries
P-003339 · 4 Feb 2025
Mr A complains to us about the actions of the SLC regarding his grant for the 2016/2017 academic year.
Closed After Initial Enquiries
View all decisions for this organisation →