Student loans fraud exposed by Panorama

Tuesday 14th November 2017 18:31 EST
 

The chairwoman of Parliament's spending watchdog wants a police probe after the BBC's Panorama uncovered evidence of fraud in the student loan system. One education agent was secretly filmed offering to get bogus students admitted into a government-approved private college for a £200 fee.

This was to allow the bogus students to fraudulently claim student loans. Then for £1,500 a year, the agent offered to fake attendance records and to provide all their coursework. Public Accounts Committee chairwoman Meg Hillier said: "There is criminal fraud going on from what you've shown me. It needs to be referred to the police."

BBC Panorama spent 10 months investigating dishonest education agents and bogus students who are committing frauds that target private colleges - also known as alternative providers - which offer courses approved for student loans. Agents were secretly filmed supplying fake documents, including a qualification certificate to a BBC undercover researcher posing as a bogus student, who wanted to cheat their way on to courses and apply for student loans.

The National Union of Students has also called for an inquiry into the abuses exposed by Panorama. The government is keen to expand the sector as part of reforms designed to make degree and diploma courses more accessible to people who might otherwise find it difficult to enter higher education. Students on government-approved courses at private colleges in England, Wales and Northern Ireland are entitled to - depending on circumstances - £11,000 in maintenance loans to cover living expenses and up to £6,000 in tuition fee loans, paid direct to colleges. This year total student loan debt, from universities and private colleges, topped £100bn.

Acting on a tip-off, Panorama approached Imran Saeed Sheikh, an agent and fraudster who owns a chain of barber shops in east London.

Mr Sheikh said that for a £200 fee he could get Panorama's undercover students on to a two-year Higher National Diploma (HND) business course, at Grafton College in central London, so they could get student loans. He added that once a bogus student was admitted he could provide everything they would need to stay on their course, in return for an annual cut of their loan money.

Neither Imran Sheikh nor his assistant responded when approached by the BBC for comment.


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