A lack of government oversight has left England’s student finance system open to fraud and abuse, a parliamentary report into the franchised provision of higher education has warned.
In a study by the Public Accounts Committee (PAC) into institutions that provide courses on behalf of universities via a franchise agreement, several risks of this type of provision and potential failings are highlighted, with about half the £4.1 million student loan fraud detected in 2022-23 relating to a sector that makes up fewer than 5 per cent of students.
Highlighting areas of potential fraud, the PAC report explains how two-thirds of franchised providers are not registered with the Office for Students (OfS), which sets conditions for registered institutions designed to protect students, assure quality and ensure good governance.
Furthermore, the responsibility to tackle fraud and abuse of student funding is not fully embedded in ways of working at the OfS, Student Loans Company and the Department for Education (DfE), it adds.
