UK Student Loan System Vulnerable to Fraud Due to Poor Oversight

A recent parliamentary report reveals significant risks of fraud in the student finance system, exacerbated by inadequate government regulation.

The Public Accounts Committee has identified a 'back door' into the student loan system, heavily exploited by organized fraudsters.
Franchised education providers, often unregulated, are a major source of this vulnerability, with some retaining up to 30% of tuition fees.
In 2022, franchised institutions accounted for 53% of all fraud detected, yet they represent a small fraction of the student population.
Government agencies including the Department for Education and the Student Loans Company are criticized for insufficient oversight and response.
Calls for urgent reforms are intensifying as the number of students at franchised providers continues to grow rapidly.