Over £5m in student loans awarded to ineligible foreign students

The Independent is reporting that more than £5m has been handed out in loans to foreign students who were not entitled to them…

An inquiry by public spending watchdog the National Audit Office shows that 992 overseas students were handed Government loans for which they were ineligible. All were said to be studying at private higher education institutions.

The payments came to light after an investigation prompted by a huge surge in applications for financial help with living costs from European Union nationals – in the main from Romania.

Labour MP Margaret Hodge, who chairs the influential Commons public accounts committee, described the £5.4m agreed in loans to ineligible students as “incredible”…

Stricter controls over the granting of loans have now been put in place by the Student Loans Company…

More at: Over £5m in student loans awarded to ineligible foreign students

 

This sounds to me like the kind of thing that might happen when the people agreeing the loans know they aren’t on the hook if they never get repaid, a bit like the situation that led up to the recent financial crises where loans were made to all sorts of people who probably shouldn’t have had them and then just packaged up and sold off to others…

 

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Comments

  1. andrew_1910

    SchoolsImprove I wrote a submission to BIS saying this would happen, in response to Willetts’ White Paper way back.

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