Experts Called In To Investigate Student Loans Fraud Claims

Fraud experts are to investigate the university loans system amid concerns that students are falsely claiming millions without intending to study – or ever repay the loans – the education secretary has announced.

- Aamna Mohdin

Bridget Phillipson has instructed the Public Sector Fraud Authority to coordinate the response to allegations that individuals with no genuine academic intent are enrolling in degree courses to secure loans.

The claims were first revealed in an investigation by the Sunday Times, which reviewed financial documents and company accounts and interviewed sources from the Student Loans Company (SLC), the Department for Education (DfE), the Office for Students (OfS), and university lecturers. The paper said most of the students under scrutiny were believed to be at "franchised universities" – colleges paid to provide courses for established universities.

It also revealed the concern of a potential "organised recruitment" of Romanian nationals in particular to enrol on courses.

Writing in the newspaper, Phillipson called the revelations "one of the biggest financial scandals in the history of our universities sector".