The Student Loans Company (SLC) is doubling down on fraud prevention. These shocking claims of harm in the student loan system have led to this strong step forward. During the last two years though, the SLC has worked in partnership with police departments. Collectively, they are looking closely at the increasing number of Romanian students enrolling in their colleges. This case is an outgrowth of a Sunday Times story. The report uncovered one instance of such sharp practices, which Susan Lapworth, chief executive of the Office for Students (OfS), called entirely unacceptable.
Impressively, the Department for Education is walking the walk and doing some massive heavy lifting to tackle these worries. Further, they have promised to “dramatically reform regulation,” freeing the OfS from unnecessary constraints on its ability to protect taxpayer money. Bridget Phillipson, the new education secretary, has a key part to play here. She’s called on the newly formed Public Sector Fraud Authority (PSFA) to coordinate the government’s response and bolster existing investigations.
The alleged wrongdoing includes a lot of suspicious applications flagged by the SLC, including one with fake pay stubs and others with duplicate addresses. There are sounds of alarm as well about franchised colleges signing up prospective students who don’t have the English language skills to succeed. This has raised concerns about centralized recruitment efforts specifically aimed at Romanian nationals, as well as the possibility of rampant fraud.
"The sharp practices alleged in the Sunday Times investigation were entirely unacceptable and represent shocking misuse of public funding." – Susan Lapworth, OfS chief executive
MP Bridget Phillipson will be laying out the details of her Private Members Bill. These four proposals would give the OfS far more powers to step in and safeguard public money. The Department for Education has already taken action against these rogue franchise operators, helping to double down on their commitment to combat fraud.
"It pointed to one of the biggest financial scandals in the history of our universities sector." – Bridget Phillipson
The UK now has a staggering £236.2 billion of student loan debt. Student loans are only repayable once graduates start earning over £24,990 rising to £31,395 if you live in London, the rest of the UK’s capital city. Loans are written off after 40 years regardless of repayment status, making the need to protect these funds all the more critical.
Universities UK agrees that franchise partners should be required to register with the OfS. This strategy has dovetailed nicely with the government’s desire to clamp down. With support from the Cabinet Office and Treasury, the PSFA is working with public bodies to combat fraud in a number of sectors.
"But today's revelations demand that we must go further and faster to protect the public purse." – Bridget Phillipson