Starting university comes with plenty to think about. You might be moving away from home, sorting accommodation, buying everything you need for your course and trying to work out how far your maintenance loan will actually stretch.
The last thing you need is a message telling you that there is a problem with the money you’re relying on to pay your rent and bills. But that’s exactly what scammers are counting on, as student finance payments begin for the new academic year, the Student Loans Company (SLC) is warning you to be on your guard for convincing emails, texts and calls designed to steal your login and banking details.
Around £2.6 billion in maintenance support is due to be paid to 1.1 million students during September, making the start of term an especially attractive time for scammers to strike.
And this isn’t just a theoretical threat. During the last academic year, scammers stole around £519,000 from 168 students, while more than 1,100 people reportedly had details on their student finance accounts changed. In many cases, the fraud was spotted before any money disappeared.
How the student loan scam works
What makes this scam particularly convincing is that the message you’re sent may relate to something you’re genuinely expecting. You might receive a text, email or phone call shortly before your maintenance payment is due, telling you there’s a problem with your student finance account.
For example, you could be told that:
- your bank details have recently been changed
- your maintenance payment has been blocked or delayed
- you need to update or confirm your bank details
- there’s a problem with your student finance account
- your account could be closed unless you act quickly.
The message then directs you to a website where you’re asked to log in. At first glance, the website may look like the genuine Student Loans Company or student finance service, but it’s a fake.
Once you enter your login and financial details, you’ve handed them directly to the scammers. They can then use those details to access your real student finance account, change the bank account registered to it and attempt to redirect your maintenance payment to themselves. That means you don’t necessarily have to send a scammer any money yourself. The aim is to get access to the payment before it ever reaches you.
Why you’re being targeted now
Timing is a big part of what makes the scam work. If you’re waiting for your maintenance loan and suddenly receive a message telling you there’s a problem with it, you’re far more likely to pay attention. You might also feel you need to deal with it immediately. If your rent is due or you’re relying on the payment for food, travel and other university costs, the prospect of your money being delayed can be alarming.
Scammers exploit that pressure, in England and Wales, maintenance loan instalments are generally paid around September, January and April, while payment arrangements differ in Scotland and Northern Ireland. These payment periods can therefore bring an increased risk of scam messages.
So if a message lands just before you’re expecting your money, don’t assume the timing proves it’s genuine. It may be exactly why you’ve been targeted.
The biggest warning sign: you’re being rushed
A message doesn’t need to be badly written or come from an obviously suspicious number to be fraudulent. Modern phishing scams can imitate legitimate organisations extremely convincingly. The website you’re directed to may use familiar logos, wording and layouts, while the message itself can appear professional.
Instead, pay attention to what you’re being asked to do. A common warning sign is urgency. You might be told that you need to respond within 24 hours, that your account is about to be closed or that your payment won’t arrive unless you immediately confirm some information.
The SLC says it will never ask you to provide or confirm personal or financial information by email, text message or social media. It also says it won’t send you a message imposing an urgent deadline such as threatening to close your account if you don’t respond within 24 hours.
Don’t use the link in the message
If you’re told there’s a problem with your student finance, don’t follow a link in the message to investigate it. Instead, go independently to GOV.UK and access your student finance account from there. That way, you’re not relying on a link supplied by somebody else to take you to the genuine website.
If there really is a problem with your account or payment, you can investigate it securely once you’ve logged in. The same applies if you’re contacted by phone. Don’t give out personal or banking information simply because the caller claims to be from the Student Loans Company.
End the call and contact the relevant student finance service yourself using the official contact information on GOV.UK.
Be particularly wary of WhatsApp and social media
You should also be suspicious if somebody contacts you through WhatsApp claiming to be helping with your student finance. The SLC says it and Student Finance England do not provide services through WhatsApp, and they won’t initiate contact through social media to discuss your application or entitlement.
It’s also worth being careful about what you share yourself. Posting publicly that your maintenance loan is arriving on a particular date might seem harmless, but it can give scammers useful information about when you’re expecting money.Details such as your full name, date of birth, customer reference number, course information and current or previous address can also be valuable to somebody trying to impersonate you or access your accounts.
What if you receive a suspicious student finance message?
If you haven’t clicked anything or entered any information, the safest option is usually to stop engaging with the message.
Don’t reply, don’t open attachments and don’t use any contact details contained within it.
You can forward suspicious emails to report@phishing.gov.uk, while scam texts can be forwarded free of charge to 7726.
If you want to check whether there’s really a problem with your student finance, access your account independently through GOV.UK.
What if you’ve already clicked the link?
Don’t assume it’s too late to do anything. If you’ve entered your student finance login details into a website that you now think may have been fraudulent, change your password immediately and contact the Student Loans Company or your relevant student finance provider through its official channels.
You should also check the bank details registered on your student finance account. If they’ve been changed without your permission, report this straight away. If you’ve reused the same password elsewhere, particularly for your email account, change it on those accounts too. Where available, use two-step verification or a passkey to make it harder for somebody to access your accounts.
What if your maintenance loan has already been stolen?
If a scammer has managed to redirect your maintenance payment, contact your student finance provider as quickly as possible. According to the SLC, students who fall victim to this type of fraud should be able to receive a replacement payment, meaning you shouldn’t ultimately be left to absorb the financial loss yourself.
However, getting the situation resolved may take time, and that can create an immediate problem if you need the money for rent or everyday living costs. If you’re left without money while the fraud is being investigated, speak to your university too. Your student services or financial support team may be able to tell you about hardship funds or other emergency support available to you.
If you think your bank account has also been compromised, contact your bank immediately using a trusted number, such as the one on the back of your card or in your banking app.
Report the fraud
If you’ve actually lost money or become a victim of fraud, you should also report what happened.
In England, Wales and Northern Ireland, fraud can be reported through Report Fraud. If you’re in Scotland, you should contact Police Scotland on 101.
Keep evidence of what happened, including screenshots of texts or emails, the sender’s details, website addresses, dates and times, and any correspondence you have with your student finance provider or bank. This can help if you need to show how your account was compromised or pursue the matter further.
Don’t let a convincing message catch you off guard
The most effective student finance scams don’t necessarily look ridiculous. They work because they arrive at exactly the right moment and tell you something you can easily believe.
You are waiting for a payment. You would be worried if your bank details had changed. And you probably would want to fix the problem immediately, that’s what gives the scam its power. So if you’re sent an unexpected message about your maintenance loan, resist the pressure to act through the message itself. Don’t click the link. Go directly to GOV.UK, log in to your genuine account and check what’s happening there.
Taking an extra minute to verify a message could prevent a scammer getting their hands on the money you’re relying on for the term ahead.
Having problems with your student finance?
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