Prestigious Scottish university sanctioned by the US government over $3m in student loans
A Scottish university was found to have breached rules set by the US government over the delivery of $3 million [£2.4m] in student loans, it has emerged.
The University of Aberdeen was ordered to take “additional measures” to avoid being removed from a scheme that provides financial support to about 150 of its students.
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Hide AdThe Scotsman exclusively revealed earlier this year the university’s accounts had highlighted a “material uncertainty” over its ability to continue as a “going concern” for the following 12 months.
The “significant doubt” over the future of the 530-year-old institution underlined the scale of the financial pressures in the higher education sector, although it insists it has made “strong” financial progress since then.
The issue relating to the “going concern” assessment contributed to a delay in the publication of the university’s accounts. It was the second year in a row the ancient institution had been late with its accounts, following a sector-wide problem in 2021/22.
Now it has been revealed the delays led to the university falling foul of rules set by the US department of education’s federal state aid programme, which awards more than $120 billion [£94bn] a year in grants, work-study funds, and low-interest loans to about 13 million students.
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The scheme is an “important tool for recruitment” for Aberdeen University in the US market, with about 150 of its students receiving more than $3m [£2.4m] in loans under the programme.
Aberdeen University was found to have breached the programme’s rules. The institution appealed the decision, but was unsuccessful.


According to documents considered by the university’s ruling court, the US department subsequently “mandated” that it take “additional measures” to remain a participant in the programme, including lodging “financial protection with it at the level of 10 per cent of funds received”.
Court papers also show that avoiding a repeat of the “material uncertainty” audit opinion in the university’s next set of accounts is considered a “key priority”.
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Hide AdAberdeen University said its accounts for 2023/24 were due to be approved by the governing body next week, and it expected the strong financial progress it had made to be reflected in an update after the meeting.
The institution added the accounts would be filed with the US education department “well within their timescales” this year.
A spokesperson said: "A temporary financial arrangement was requested last year by the US department of education’s federal state aid programme because the university's accounts were delayed.
“The temporary arrangement had no impact on any US students applying to Aberdeen University.
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Hide Ad“Financial challenges at the University of Aberdeen were caused by the acute financial pressures affecting universities across the UK due to the sudden drop in international student numbers following the UK government's visa review.
“Financial challenges were also linked to the 19 per cent decline over a decade in core funding for tuition in Scottish universities. Swift and effective action at the University of Aberdeen has now stabilised our financial situation.
“We are building on this by raising ever greater awareness of this historic university, which regularly appears in the top 20 of league tables and is ranked 15th in the UK National Student Survey 2024."
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