UK Investigates Widespread Fraud in University Loans System

The government is targeting franchised universities and organized schemes to exploit public funds, with new legislation planned to bolster oversight.

Education Secretary Bridget Phillipson has ordered the Public Sector Fraud Authority to lead an investigation into alleged misuse of the student loans system.
Franchised universities, which partner with established institutions, are at the center of the allegations, with concerns about inadequate oversight and financial instability.
Reports suggest organized recruitment of Romanian nationals and the use of fake documents to fraudulently claim student loans without academic intent.
The Department for Education plans to introduce legislation to strengthen the Office for Students' regulatory powers and prevent future abuse.
The government has committed to recovering misused funds and taking action against rogue operators exploiting the system.