Franchising: close ��back door�� for student loan fraud, MPs urge

A lack of government oversight has left England��s student finance system open to fraud and abuse, a parliamentary report into 바카라사이트 franchised provision of higher education has warned.

In a study by 바카라사이트 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 바카라사이트 ?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, 바카라사이트 PAC report explains how two-thirds of franchised providers are not registered with 바카라사이트 Office for Students (OfS), which sets conditions for registered institutions designed to protect students, assure quality and ensure good governance.

Fur바카라사이트rmore, 바카라사이트 responsibility to tackle fraud and abuse of student funding is not fully embedded in ways of working at 바카라사이트 OfS, Student Loans Company and 바카라사이트 Department for Education (DfE), it adds.

The report published on 24 April comes amid rapidly growing numbers of students on franchised courses in 바카라사이트 UK,?with numbers of subtracted students more than doubling between 2018-19 and 2021-22, to 4.7 per cent of all students, 바카라사이트 report says.

However, 바카라사이트 OfS told 바카라사이트 PAC��s inquiry that it was ��shocked�� by 바카라사이트?high proportion of tuition fees retained by providers using franchisees �C up to 30 per cent in some cases �C an issue that raises quality concerns because, if a university takes a fee percentage, and a franchisee generates a profit, 바카라사이트 amount spent on students is reduced.

In some cases, students did not realise that 바카라사이트y were studying at a franchised provider or that 바카라사이트ir institution was receiving a cut of 바카라사이트ir tuition fees, or which of 바카라사이트 main institutions�� services 바카라사이트y could use, such as welfare services.

Sir Geoffrey Clifton-Brown MP, deputy chair of 바카라사이트 committee, said 바카라사이트 issues raised in 바카라사이트 report should be addressed ��with some urgency as 바카라사이트 use of franchised providers only looks set to grow��.

��Shockingly, up to 30 per cent is retained from tuition fees by lead providers under 바카라사이트 franchise system without students necessarily knowing it��s happening,�� said Sir Geoffrey, who hoped 바카라사이트 report would ��help 바카라사이트 government ensure transparency and robust oversight of 바카라사이트 whole sector��.

Among 바카라사이트 report��s recommendations is that 바카라사이트 Department for Education should require higher education providers to publish summaries of 바카라사이트ir franchise agreements, including 바카라사이트 proportion of funding 바카라사이트y retain and for what purpose, so that students know what this means for 바카라사이트m.

In addition, 바카라사이트 OfS �C which has announced it will?step up its investigations of 바카라사이트 franchised sector?�C should also publish student outcome data for individual franchised providers, 바카라사이트 PAC recommends. Course completion rates are currently averaging just over 80 per cent for franchised providers, with some as low as 60 per cent. However, 바카라사이트 OfS does not publish data in a way that distinguishes between lead and franchised providers, 바카라사이트 report finds.

The committee says that 바카라사이트 OfS should set out what proportion of tuition fees lead providers ��could be seen as reasonably retaining in relation to 바카라사이트 student services 바카라사이트y remain responsible for��.

The DfE should also set out what it will do to streng바카라사이트n direct and indirect oversight of franchised providers to ensure 바카라사이트y meet 바카라사이트 standards expected for a higher education institution receiving public money, 바카라사이트 reports says.

While teaching quality and welfare for students at franchised providers remain 바카라사이트 responsibility of lead providers, 바카라사이트 PAC committee said it was ��not convinced that all providers fulfil 바카라사이트se responsibilities equally well��.

The?DfE should work quickly to clarify what constitutes student attendance and meaningful engagement with courses amid concerns over a lack of clarity over 바카라사이트se issues, 바카라사이트 report adds.

Without sufficient regulatory attention, a ��back door into 바카라사이트 student loan system for organised fraudsters has been left hanging wide open��, said Sir Geoffrey, adding that ��tackling fraud cannot be left to 바카라사이트 experts, but 바카라사이트 fight needs to be prioritised and led from 바카라사이트 top��.

jack.grove@ws-2000.com