The UK University Fraud Scandal: Sham Students and Fake Degrees

[Social Media]

 

An investigation has uncovered a massive fraud scheme in the UK’s university system, where thousands of students are enrolling in degree courses with no real intention of studying. Instead, they are exploiting the student loan system to claim financial aid, defrauding taxpayers of potentially hundreds of millions of pounds.

 

 

The investigation, conducted by The Sunday Times, has revealed a widespread issue where students—many of them Romanian nationals—are enrolling in courses solely to secure loans that they never intend to repay. Government officials suspect that an organized network is behind the recruitment of these fraudulent students.

 

 

The majority of these suspected fraudulent applications are linked to franchised universities—small colleges that offer degree courses on behalf of established universities but often have lower academic entry requirements. Reports indicate that at least six franchised providers have been identified as being involved in such fraudulent claims.

 

A review of leaked financial documents, company accounts, and testimonies from sources within the Student Loans Company (SLC), the Department for Education (DfE), and the Office for Students (OfS) has revealed some shocking details. In the 2022/23 academic year alone, the SLC identified 3,563 suspicious loan applications, totaling almost £60 million. However, internal documents seen by The Sunday Times suggest that the true scale of fraud could run into the hundreds of millions.

 

Investigations have shown that some franchised colleges accept students who lack basic English proficiency, with some applicants even submitting screenshots of Duolingo test results as proof of their language skills. At some universities working with franchised providers, Romanian nationals accounted for between 35% and 55% of applicants last year. Disturbingly, some students enroll in a course, collect their first £4,000 maintenance loan payment, then drop out—only to re-enroll the following year and repeat the process.

 

One franchised college reportedly made £234 million in revenue last year and saw its profits surge by an astonishing 1,266% over three years. These figures suggest that the fraud is not limited to individual students but could be a systematic operation benefiting both institutions and recruiters.

 

Education Secretary Bridget Phillipson, writing for The Sunday Times, described the revelations as "one of the biggest financial scandals in the history of our universities sector." She has announced that the Public Sector Fraud Authority, under the Cabinet Office and the Treasury, will be tasked with investigating the abuse of the student loan system.

 

The scale of the issue is staggering, with UK student loan debt currently standing at £236 billion and projected to reach £500 billion by the 2040s. While the lead universities, overseen by the OfS, are responsible for awarding qualifications and maintaining academic standards, franchised providers deliver the teaching. Students enrolled in franchised programs can access government funding through the SLC, which distributes £20 billion annually in loans and grants.

 

This growing crisis has been fueled by social media recruitment tactics. Unlike traditional university applications that require A-levels, personal statements, and interviews, franchised providers offer a different route. Recruitment agents—essentially commission-based salespeople—advertise these courses aggressively on TikTok, Instagram, and Facebook. Posts often promise easy university admission and full student finance, sometimes even offering free laptops as incentives.

 

One recruitment post reads, "Your journey to studying in the UK begins here!" while another urges prospective students to "Apply now as spaces will go quick!" Another agent explicitly targets non-English speakers, stating: "You don’t know English, but you want to enter university in the UK?" A Romanian commenter under the post claims, "That’s how it goes in the UK. I barely know two words, and I’m passing because they take money and we take it." Another remark reveals the shocking reality: "I have an example in my class—he doesn’t know how to write or read in English. So it’s possible!"

 

Once accepted onto a franchised course, students can apply for tuition fees and maintenance loans through the lead university. Tuition loans go directly to the lead university, which then pays a share to the franchised provider and the recruitment agent. The maintenance loan—up to £13,700 a year depending on circumstances—is deposited directly into students' bank accounts.

 

Repayment is required only when a graduate earns over £25,000 per year. If they never reach this threshold, the debt is written off after 40 years. The system relies on proper monitoring of student attendance to prevent fraud, but concerns have been raised that both franchised providers and lead universities are failing in this duty.

 

"The problem with attendance is proving it and what does attendance mean?" said a senior OfS source. The lack of a clear definition makes it difficult to identify fraudulent claims effectively.

 

Vivienne Stern, chief executive of Universities UK, has stated: "Universities UK, and its members, are clear about the need to uphold high standards in the management of franchise partnerships. If there is evidence of fraudulent behavior, we completely agree that it must be rooted out."

 

As the government steps up its investigation, the question remains: how did this level of fraud go unchecked for so long, and what measures will be put in place to prevent further abuse of the system?

 

 

Based on a report by The Times  2025-03-28

 

 

[newbee2022]

The main problem is not clever "students" exploiting the system but the system itself.

So, instead of describing frauds and crimes reorganize the system. Whining doesn't help at all.

[Thingamabob]

The problem is the system itself which is pathetically naive. If course people will take advantage of it. Time for the UK government and civil service to wake up.

[Watawattana]

The Civil Servants who are accountable for this fiasco should be fired.  

 

"The problem with attendance is proving it and what does attendance mean?" What an absolute joke.

[AndreasHG]

Private for-profit universities who can secure student VISAs and endorse student loans. What could possibly go wrong?

In Thailand, at least, private schools can only help you get a student visa (just ask the guys selling fake watches in Nana how they got here), but then the "student" has to fend for himself to survive.

[rickudon]

On 3/28/2025 at 10:58 AM, Watawattana said:

The Civil Servants who are accountable for this fiasco should be fired.  

 

"The problem with attendance is proving it and what does attendance mean?" What an absolute joke.

Ask the politicians who set up the formula. The SLC just administers the loans - it is the University or college who should check attendance - the fraud is being done by private 'universities' who pocket the tuition fees, allowing the fake student to get the loan. 

 

For a start, SLC should only be allowed to provide loans to UK citizens.

[JonnyF]

On 3/28/2025 at 7:03 AM, Social Media said:

An investigation has uncovered a massive fraud scheme in the UK’s university system, where thousands of students are enrolling in degree courses with no real intention of studying. Instead, they are exploiting the student loan system to claim financial aid, defrauding taxpayers of potentially hundreds of millions of pounds.

 

The UK really are the mugs of the world.

 

Leaving was the best thing I ever did.  

[nauseus]

On 3/28/2025 at 8:31 AM, newbee2022 said:

The main problem is not clever "students" exploiting the system but the system itself.

So, instead of describing frauds and crimes reorganize the system. Whining doesn't help at all.

 

The problem is both. Fraud is a crime.

[TedG]

8 hours ago, JonnyF said:

 

The UK really are the mugs of the world.

 

Leaving was the best thing I ever did.  

When ever governments hand out free money, there will be people who will find ways to exploit it. 

[newbee2022]

6 minutes ago, nauseus said:

 

The problem is both. Fraud is a crime.

Maybe you want to know the difference. Just in case:

https://www.renshawderrick.co.uk/site/firm-news/what-is-the-difference-between-civil-and-criminal-fraud

[faraday]

Then they come on an extended holiday here & proclaim on Tiktok to be: "living in Thailand"