Student Loans Company
Debate between Lord Johnson of Marylebone and Christine Jardine(7 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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Joseph Johnson
Yes, I am afraid the Labour party has got that wrong. As I have just said, the rate at which students from the most disadvantaged backgrounds are going to university has jumped sharply over the past six or seven years. They are now 43% more likely to go into higher education than they were in 2009-10.
Christine Jardine (Edinburgh West) (LD)
As the mother of a daughter with a student loan, I was appalled by a BBC report of evidence that education agents are recruiting bogus students to private colleges to defraud the taxpayer of thousands of pounds in student loans. What are the Department, the Quality Assurance Agency for Higher Education and the Student Loans Company doing to detect and prevent bogus students? For instance, will the Government legislate to ban essay mills?
Joseph Johnson
The Department takes allegations of fraud and malpractice extremely seriously, and we are grateful to “Panorama” for bringing to our attention the fraud allegations it aired in relation to student loans at three private providers. Fraud devalues the work of honest providers and students. Working with stakeholders, including the City of London police, we will take robust action where abuses of the system are evident.
To put this in context, it is vital we remember that the number of ineligible payments to such providers is very low. It is about 0.5% of all payments, and that has come down sharply from 4% in 2012-13. The rate is no higher than the rate of ineligible payments across the rest of the Higher Education Funding Council-funded, or publicly funded, world of higher education.