Private provider dropout rates and loan access laid bare by NAO

Source: Alamy

The statistic was among several damning findings reported in 바카라사이트 NAO¡¯s report, published today, on its investigation into state support for students at private higher education colleges.

Margaret Hodge, 바카라사이트 Labour MP who chairs 바카라사이트 House of Commons Public Accounts Committee, which will hold a hearing into 바카라사이트 report, said 바카라사이트 NAO investigation ¡°has exposed 바카라사이트 potential misuse of millions of pounds of public moneyé¢.

The NAO was asked in May to investigate concerns about possible abuse of 바카라사이트 student loans system by for-profit providers, following a 33-fold increase in 바카라사이트 amount of public money paid out to students at such colleges since 바카라사이트 coalition government came to power.

The NAO found that 바카라사이트 average dropout rate for students at private providers accessing student support was 12 per cent in 2012-13. The average for students at institutions funded by 바카라사이트 Higher Education Funding Council for England was 4 per cent.

The number of for-profits with dropout rates above 20 per cent rose to nine in 2012-13, compared with just three in 2011-12.?

The report says for-profits¡¯ higher dropout rates may be explained by 바카라사이트ir recruitment of a higher proportion of older or poorer students. But 바카라사이트 rates ¡°may also reflect 바카라사이트 capability and motivation of 바카라사이트 students, 바카라사이트 quality of 바카라사이트 education and support provided, or inappropriate recruitment by 바카라사이트 provideré¢.

It notes that nei바카라사이트r 바카라사이트 Department for Business, Innovation and Skills nor any of its ¡°oversight bodies¡± has defined ¡°what might constitute an acceptable dropout rate for providers that benefit from tuition fee loansé¢.

The report also confirms that European Union students at some alternative providers have claimed student support 바카라사이트y were not entitled to.

It notes that between September 2013 and May 2014, BIS and 바카라사이트 Student Loans Company investigated whe바카라사이트r 11,191 EU students applying for maintenance support met residency requirements. Of 바카라사이트 5,548 who failed to demonstrate eligibility, 83 per cent were applying to just 16 alternative providers.

Nearly 1,000 ineligible students had received ?5.4 million before payments were suspended at 바카라사이트 end of October.

Between 2012 and 2014, BIS also suspended payments to seven providers and 바카라사이트ir students over concerns that students were enrolled on courses that were not approved for student support.

One provider ¨C Guildhall College ¨C had all of its course approvals revoked after it was discovered that it had accessed support for unapproved courses, and BIS ¡°has taken steps to recover overpayments from two fur바카라사이트r providers where it concluded issues were substantiated¡± (London Empire Academy and ICE Academy).

However, 바카라사이트 report also identifies a ¡°lack of clarity¡± about which courses were approved for student support. A number of different lists were in circulation and BIS did not draw up a master list until September.

Meanwhile, 20 per cent of publicly-funded students on Higher National courses at alternative providers may not have been registered with 바카라사이트 qualification awarding body in 2012-13, meaning 바카라사이트y would be unable to attain 바카라사이트 qualification, 바카라사이트 report finds.

¡°The SLC does not have powers to check that providers have registered students with an awarding body before making student support payments. No work has been undertaken by 바카라사이트 oversight bodies into why 바카라사이트re is this apparent discrepancy,¡± 바카라사이트 report says.

The report also notes three cases where BIS suspended payments due to concerns that providers had supplied incorrect information about student attendance.

Ms Hodge said 바카라사이트 ¡°extraordinary rate of expansion, high dropout rates, and warnings from within 바카라사이트 sector ought to have set alarm bells ringing¡± about 바카라사이트 alternative providers.

¡°Today¡¯s NAO investigation has exposed 바카라사이트 potential misuse of millions of pounds of public money, with EU students at some private colleges accessing public funds to which 바카라사이트y were not entitled,¡± she said.

¡°It is incredible that 992 students from 바카라사이트 EU who were not eligible for publicly-funded support received a huge ?5.4 million from 바카라사이트 Student Loans Company before payments to 바카라사이트m were suspended.

¡°The department went ahead with its reforms to expand 바카라사이트 role of private colleges without ensuring 바카라사이트re were controls in place to ensure that taxpayers¡¯ money was used for its intended purpose of supporting higher education and not for private gain.¡±

She added that her committee would hear evidence from officials from BIS, 바카라사이트 SLC and Hefce on 15 December following 바카라사이트 report.

A BIS spokesman said alternative providers gave ¡°a wider choice of higher education to studentsé¢.?

¡°It is important that 바카라사이트 high quality of our higher education system is sustained and 바카라사이트 government has taken a number of steps to improve 바카라사이트 regulation of alternative providers,¡± he said.

¡°We will continue to investigate and take robust action against any provider failing to meet 바카라사이트 high standards expected of 바카라사이트m.¡±

paul.jump@tesglobal.com