Education secretary Bridget Phillipson has asked counter-fraud experts to conduct a study into the university loan system due to fear that students claim millions of pounds without intention to study.
Mrs Phillipson has commissioned the fraud authority of the public sector to coordinate the response to the allegations and to support it on the way.
It follows a Sunday Times probe that reports that thousands of students with 'no academic intention' are suspected of a fraudulent manner of hundreds of millions of pounds from the country's university loan system.
The newspaper said that most students who are being examined is thought that they are on 'franchised directs' who are colleges that have been paid to offer courses for established universities.
There is a concern of potential 'organized recruitment' by Romanian subjects in particular to register for courses, the newspaper said.
The Sunday Times said that the student Loans Company (SLC) saw suspicious requests with fake documents and tackling duplication, and franchisedic fittings register students who cannot speak sufficient English.
Mrs Phillipson wrote for the Sunday Times: 'Today's revelations of great abuse of public money and potential fraud by students in franchise universities give a hammer report for the integrity of higher education in this country.
'They point to one of the greatest financial scandals in the history of our university sector. They demand the sturdy action. '
Education secretary Bridget Phillipson (above) has asked counter-fraud experts to lead a study into the university loan system because of the fears
Stock image: It follows a probe that reports that thousands of students with 'no academic intention' are suspected of a fraudulent manner of hundreds of millions of pounds from the university loan system of the country
Stock Image: The Student Loans Company has spotted suspicious applications with fake documents and address duplications, and Franchisedogels register students who cannot speak sufficient English
She added that franchising in some institutions 'has become less about expanding access and more about increasing the expansion of overhead costs for hard universities', and said that the system also has 'no necessary guardrails against abuse'.
Mrs. Phillipson said that the office should have offered this from these guardrails for students'.
She said she asked the fraud authority of the public sector to “coordinate immediate action throughout the system to stop this growing threat.”
Mrs Phillipson said: 'The company for student loans collaborated with law enforcement agencies to investigate the prevalence of some Romanian students at certain institutions, but not enough care was taken on the dots of wider abuse about the system and to close the door to widespread abuse.
'But today's revelations require that we have to go further and faster to protect the public wallet. I will not tolerate that a cent of the money from the taxpayers is being abused. '
Mrs Phillipson said that “she will” bring new legislation to the first available possibility to ensure that the office has heavy new powers for students to quickly and robustly intervene to protect public money, in addition to the stronger assignment I have given to check the university finances. “
A spokesperson for the Ministry of Education said: 'We will not stop anything to protect public money; Every abuse of student loans is an insult to hard -working students who strive for better opportunities.
'Our change plan will restore trust in our universities. We have already taken clear action to combat rogue franchise operators to tackle fraud and we will continue. We will revise the regulations, so that the office for students (OFS) better protects the money from the taxpayers. In the meantime, we have asked the OFS to clamp franchising.
Stock Image: There is a care of potential 'organized recruitment' by Romanian nationals in particular to register for courses
'The education secretary has asked the fraud authority of the public sector to help coordinate the cross -removal reaction on these extreme allegations and supporting the investigations.
'Where abuse or fraud is found, we have powers to claw repayments – and we will not hesitate to use them. We will bring in heavy new laws to ensure that the OFS can quickly stop with bad actors who can play the system once and for all. '
The corporate loan company has blocked student financing payments after comparable concerns were previously identified, is understood.
Susan Lapworth, Chief Executive of the OFS, said: 'The public must be confident that the money from the taxpayers in the form of student loans is well spent – with real students who attend high -quality courses that lead to good results. This must include basic expectations, such as students who are regularly present and are competent in the English language.
'The type of sharp practices that are claimed by this research is completely unacceptable. They represent shockingly abuse of public financing and benefit from real students who do not receive the training they deserve. '
