The UK’s Universities & Science Minister David Willetts has today announced in a written statement that £8m was paid in maintenance loans to potentially bogus EU students at Alternative Providers (APs) and is threatening legal action against private colleges found to be involved.
Students from the European Union are eligible for the funds– which many use for living costs while studying in the UK at public and private higher education institutions– only after proving they have been a resident in the country for at least three years.
“Of the 11,191 students who we asked for additional residency evidence, 1,333 (12%) received a payment but were either unable to or chose not to demonstrate that they had been in the UK for the three years prior to the start of their study,” said Willetts.
“The Cabinet Office Fraud, Error and Debt Taskforce appointed by the Prime Minister, we will carry out a Fraud and Debt review”
The UK government has also approached other EU governments to assist in tracking down any students that may have returned to their home countries without paying their outstanding debt and Willetts is exploring how best to identify whether these students have returned to the UK.
“In alignment with the Cabinet Office Fraud, Error and Debt Taskforce appointed by the Prime Minister, we will carry out a Fraud and Debt review which will look at: the resilience of the entire student finance system; how we respond to fraud; and the powers of the Department of Business Innovation and Skills (BIS), Student Loads Company and partners have to tackle fraud,” he said.
Last November the minister suspected a number of Bulgarian and Romanian students studying at APs and claiming maintenance support may not have been residents in the UK for the minimum requirement of three years prior to studies.
All public funding to EU students at private institutions was resultantly halted until evidence such as bank statements, utility bills, council tax records, payslips, and proof of employment could support students’ residency claims.
Around £65 million was due to have been paid out by The Students Loans Company to students but due to the government’s crack down last year only £8m was eventually paid, £2.5m of which has already been recovered.
“Work continues to recover the rest including using debt collection agencies, court action, and if we find evidence of fraud, we may prosecute those involved,” warned Willetts.
Higher education providers, included publicly funded institutions, are also being scrutinised
Higher education providers, included publicly funded institutions, are also being scrutinised and Willetts has stated that any institutions found to be “complicit” in the suggested fraud will have action taken directly against them.
The news of further investigation into funding for EU students comes at a time when the UK’s higher education sector is feeling the strain in international recruitment and saw a 23% drop in EU student numbers in 2013 following a rise of the annual tuition fee cap from £3,465 to £9,000.
The number of British and EU students claiming support at APs grew from 13,000 in 2011/12 to 30,000 in 2012/13, and the total public expenditure on these students rose from £60m to £175m.
Referencing other EU countries’ five-year residency requirements for full package of student support, Willetts added that the government “will consult on whether student support in England should be made available on the same basis so as to ensure that scarce public funds go only to those who have a genuine attachment to the UK.”
