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/