Agencies exploit student loans with £18.5k promise for unqualified applicants
Recruiters lure students with taxpayer-funded loans, misuse funds for personal gain
Education agencies are enrolling unqualified students onto franchised university courses by promising £18,500 in taxpayer-funded loans, which they use for personal expenses and fail to repay, according to an investigation. Recruiters use social media platforms like TikTok and Instagram to attract students, claiming ‘the government will pay you’ to study.
An undercover reporter, pretending to be an uninterested applicant, was told she could secure a spot on a £9,250-a-year course and that ’95 per cent of people who get this money will never pay it back’. These findings come at a time when university funding and the student loans system are in crisis. Graduate debt reached £236 billion in March and could hit half a trillion by the late 2040s.
Any individual with settled immigration status can apply to the Student Loans Company (SLC) for government money to attend university. Many social media ads are in foreign languages. A Romanian recruiter at Concreted Education in Canary Wharf, London, suggested that the annual living cost funds could be used for ‘wedding season’. Another recruiter mentioned that a £13k maintenance loan could fund ’13 holidays to Spain’.
Outrage as students who ‘barely speak English’ given £4k ‘they never pay back' https://t.co/2cUorCqgXh
— lucyrose5 (@lucyrose_5) September 16, 2024
The agency’s founder shared a video showing people at the beach and celebrating with champagne, captioned: ‘How life feels when you’re using your maintenance loan from Student Finance to maintain your travel addiction’. An agency spokesperson stated that their TikTok posts were ‘purely for entertainment purposes’ and not meant to ‘encourage the misuse of taxpayer money’.
A recruiter from Merseyside Consulting, with offices in London and Liverpool, told the reporter it’s ‘really easy’ to get onto a course even for those ‘who don’t have qualifications, who don’t speak English very good’. He advised applying for a ‘super easy’ business management course, assuring the reporter would receive government money.
When asked about repayment, the agent said, ‘You are only repaying some of the money if you get a very good job and you are on too much money.’ He claimed that ’95 per cent of people… never pay it back’. Another employee at a Mile End agency in east London said graduates avoid repayment by not fully declaring their income.
The agency recruits through Instagram, claiming applicants can ‘join a UK university without qualifications and get up to £18,500’. An agent at Concreted Education assured the undercover reporter that not having GCSEs was ‘no problem’, as two years of work experience sufficed—meeting government criteria. The agent recommended a four-year business management course at Cecos College in Stepney Green, east London, partnered with Staffordshire University.
The investigation found at least three other agencies on TikTok recruiting students with ‘zero qualifications’ who could receive ‘£75,000 funding if they become a student here in the UK’. Agencies fill spots at universities and franchised partners, which have lower entry requirements for courses like health and social care, construction, and tourism. Franchised providers teach these students on their campuses, often in substandard office spaces.
Students can self-fund or apply to the SLC for annual loans covering tuition fees up to £9,250 and maintenance up to £13,300. Universities receive up to 30 per cent of the tuition fee, with the remainder going to franchised partners. Agencies earn a commission. Last year, the SLC disbursed £1.2 billion in loans for students at franchised providers.
A parliamentary committee warned that lax oversight of franchised universities has left the student finance system vulnerable to ‘systemic and organised fraud and abuse’. A spokesperson for Concreted Education stated the agency ‘vehemently denies’ any wrongdoing and follows strict government regulations in higher education. The agency claimed not to advise students on manipulating earnings to avoid loan repayments and is investigating the implicated agent. Merseyside Consultancy asserted, ‘We never tell people to lie.’
Frequently Asked Questions
Here are some common questions asked about this news
What is the controversy surrounding education agencies and student loans?
Agencies recruit unqualified students by promising £18,500 in taxpayer cash, which is often misused for personal expenses like holidays.
How are recruiters attracting students on social media?
Recruiters use TikTok and Instagram, claiming ‘the government will pay you’ to study, often in foreign languages.
Do students need qualifications to join these courses?
No, many agencies claim students with zero qualifications can join UK universities and get significant funding.
What happens with the money from student loans?
It is often used for personal expenses like holidays, with recruiters suggesting ways to avoid repayment by not fully declaring income.
Are these practices legal and monitored?
A parliamentary committee has warned of lax scrutiny, exposing the student finance system to fraud and abuse, though agencies deny wrongdoing.
