Overview

• 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.