AST Collapse - Student Loans

T5Cough

Hi All,
In February 2025 My son took out a £20k Student loan from Lendwise Ltd., to fund a 2-yr training course with Air Service Training in Scotland.
As AST's 'preferred funding partner', Lendwise paid the entire £20k directly to AST in advance of any education.
2-months later in April-25, AST entered Administration & cancelled the course.

AST have now collapsed & cannot repay their creditors -including their students.
Lendwise state that the Students must repay All of their loan amount, regardless of the fact that the service they've paid for will never be delivered.
In addition to the £20k, the interest on their loan accrues at c£225/month.

AST suggest Students make a Section-75 claim against Lendwise to recover their money.
However, reading the advice at MSE, Section-75 seems to only apply to Card purchases.

Any advice on how to proceed would be greatly appreciated...

Baldytyke88

Air Service Training (Engineering) Limited – in Administration (“AST”)

Shona Campbell of Henderson Loggie was appointed as Administrator of Air Service Training (Engineering) Limited (“AST”) on 10 April 2025. The affairs, business and property of AST are now being managed by the Administrator and her staff.

AST is to complete certain student courses during the Administration period whilst the Administrator explores whether a sale of the business and/or assets can be achieved.

https://www.airservicetraining.co.uk/

superbigal

Will I get any money back for my course?

Any money paid in advance for courses which are not completed, unfortunately, cannot be refunded due to the Company’s financial position. 

A claim will need to be submitted to the Administrator for money paid in advance for courses not completed. You should contact AST@HLCA.co.uk to request a Statement of Claim form to complete and return to the Administrator in order to lodge a claim in the Administration.

The Administrator and her staff cannot currently estimate whether there will be net funds available after the costs of the Administration to enable a dividend to be paid to AST’s creditors, as this depends on the level of asset realisations in the Administration. 

Creditors who have submitted claims in the Administration will be updated on the progress of the Administration in a six-monthly progress report.