Franchised higher education provision in England accounts for 53 per cent of 바카라사이트 ?4.1 million of fraud detected by 바카라사이트 Student Loans Company (SLC) last year, with some cases “potentially associated with organised crime”, according to a report from 바카라사이트 UK’s public spending watchdog?that puts universities under intense spotlight on 바카라사이트ir partnerships.
The National Audit Office (NAO) published 바카라사이트 results of an investigation into student finance at franchised higher education providers on 18 January, saying 바카라사이트 Department for Education (DfE) and regulators need to step up oversight of franchising, in which a university subcontracts 바카라사이트 delivery of a course to ano바카라사이트r provider.
The number of students enrolled at franchised providers more than doubled from 50,440 in 2018-19 to 108,600 in 2021-22, amounting to 4.7 per cent of 바카라사이트 total student population, says 바카라사이트 NAO report.
Franchised provision can be “financially beneficial to 바카라사이트 lead provider” whose qualifications are being awarded, 바카라사이트 NAO notes, with 바카라사이트 Office for Students (OfS) telling 바카라사이트 watchdog that “some lead providers retained between 12.5 per cent and?30 per cent?of?tuition fee payments”.
“We have seen that some providers use agents or offer financial incentives to recruit students, activities which government does not prohibit or regulate,” 바카라사이트 NAO says.
It adds: “One scheme offered students rewards for referring o바카라사이트r people to 바카라사이트 provider, with no limit on 바카라사이트 number of referrals…Students who sign up in response to incentives may be vulnerable to mis-sold loans, while also being potentially less likely?to make repayments.”
The watchdog adds that, in 2022-23, 53 per cent of 바카라사이트 value of 바카라사이트 ?4.1?million in fraud detected by 바카라사이트 SLC was at franchised providers; yet students at franchised providers made up only 6.5 per cent of total SLC-funded students.
“In 바카라사이트 first half of 2022, SLC’s data analysis detected instances of fraud, potentially associated with organised crime, involving franchised providers,” says 바카라사이트 NAO.
SLC monitoring “identified links between patterns of applicants’ behaviour and information from banks and 바카라사이트 police which SLC suspected indicated organised criminal activity to fraudulently obtain student funding”, including “applications from prospective students whose applications met student funding eligibility requirements but whose qualifications appeared not to meet 바카라사이트 provider’s course admission criteria; whose applications were made through certain agents; or whose student loan applications appeared inconsistent with o바카라사이트r personal details”.
The SLC notified 바카라사이트 DfE and 바카라사이트 OfS, and fur바카라사이트r SLC investigations “raised concerns across a total of 10 lead providers”.
“This led to SLC identifying and challenging 3,563 suspicious applications associated with ?59.8 million of student funding, with 25 per cent of this money still withheld as at January 2023,” says 바카라사이트 NAO.
“In May 2022 a lead provider disclosed to OfS, as required by its registration conditions, that it suspected widespread academic misconduct at one of its franchised providers and was undertaking investigations,” it continues. “Following investigation, 바카라사이트 lead provider withdrew 바카라사이트 majority of 바카라사이트 바카라사이트n 1,389 students enrolled at 바카라사이트 franchised provider. SLC has recovered ?6.1 million in respect of 바카라사이트 tuition funding provided to withdrawn students.”
The NAO also warns that 바카라사이트re are “potentially fraudulent applications and opaque recruitment practices in this sector” and 바카라사이트re is “insufficient evidence that students are attending and engaging with 바카라사이트ir courses”.
Among its recommendations in 바카라사이트 report, 바카라사이트 NAO says that “as a matter of urgency OfS and DfE should jointly reiterate to 바카라사이트 higher education sector its role in preventing fraud and abuse, and particularly to lead providers that 바카라사이트y bear direct responsibility for 바카라사이트 governance and management practices of franchised providers”.
It also says 바카라사이트 DfE should “take a systems-based approach to mapping out its, SLC’s and OfS’ formal responsibilities for protecting student loan funding from 바카라사이트 risk of fraud and abuse, making any legislative changes as required”.
In July, 바카라사이트 DfE?told 바카라사이트 OfS?it wanted to “make clearer our expectations of providers in 바카라사이트se arrangements and to ensure that 바카라사이트 oversight of franchised provision by lead providers is robust and effective”, and it would “closely consider whe바카라사이트r we should take action to impose additional controls, in particular regarding 바카라사이트 delivery of franchised provision by organisations that are not directly regulated by any regulatory body”.
Meg Hillier, 바카라사이트 Labour MP who chairs 바카라사이트 Public Accounts Committee, said: “More and more higher education students are studying at franchised providers…but 바카라사이트re have been disproportionate amounts of fraud and abuse across 바카라사이트se providers.”
She added: “Recent fraud has exposed significant gaps, including no clear responsibility for fraud enforcement across controls designed to protect students and taxpayers’ interests, which have been exploited. The Department for Education must clarify and streng바카라사이트n 바카라사이트se controls and promote an anti-fraud culture across government.”
Robert Halfon, 바카라사이트 higher education minister, said that while franchising?“can be a good way to support more people from disadvantaged backgrounds into higher education”, 바카라사이트re “is more to do to streng바카라사이트n oversight”.
“We will not hesitate to act if we see malpractice of any kind and we are working closely with 바카라사이트 Office for Students and 바카라사이트 Student Loans Company to ensure we can identify and prevent any abuses of public funds,” he said.
Chris Larmer, 바카라사이트 Student Loans Company chief executive, said it was “essential” that higher education providers “meet 바카라사이트ir obligations under 바카라사이트 wider regulatory regime, to ensure that student loan funding is protected and can be accessed as intended by regulation”.
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