Which UK University is among the Worst for Student Loan Fraud?

A London university has been named among the worst in the UK for student loan fraud, leaked data has revealed.

Since 2022, the Student Loans Company (SLC) has identified 543 fraudulent applications linked to the University of West London. The fraudulent claims amounted to £6.2 million.

The university, with more than 11,000 students, a fifth from outside the UK, was among six institutions with the highest levels of lost loan fraud.

The others were Arden University, Canterbury Christ Church University, Buckinghamshire New University, the University of Suffolk and Leeds Trinity University.

Students made fraudulent applications without university oversight.

The SLC did not inform the universities about the claims, which are assessed under civil rather than criminal law.

The University of West London, with campuses in Ealing and Brentford, said 70% of the fraudulently claimed funding was linked to Oxford Business College.

The college, a franchised provider, taught some of the university’s business courses.

The university ended its contract with Oxford Business College in 2022 after a Department for Education investigation into its quality of provision.

Across the six universities, fraud amounted to £22 million. Of this, £14.9 million was suspended or recovered.

However, £7.1 million in grants and loans went directly to students, according to SLC figures from September.

Education Secretary Bridget Phillipson said: “The loan system is being abused under their watch.

“The revelations of lost loan fraud should be a wake-up call for any university franchising out courses.”

A University of West London spokesperson said:

“There is no suggestion that, and the University has not, retained sums obtained or profited from any fraud conducted by students enrolled on its courses.

“Immediately following termination of its contract with Oxford Business College, the University reviewed its processes and took a series of actions to ensure they are fit for purpose and as effective as possible in preventing abuse.”

Vivienne Stern, chief executive of Universities UK, said:

“Some of our members undertake significant franchising activity and we know of extensive action to tighten controls, including ending partnerships in some cases.

“If such measures are not sufficient to deal with what appears to be organised networks targeting the system, UUK will work at pace with government, the regulator and the SLC to ensure everything possible is done to stop it.”