Student Loan scam uncovered

An investigation conducted by BBC’s Panorama revealed a network of fraudulent loan schemes, which allow one to enroll as a student within a private college and claim tuition fee loans.

The investigation has been ongoing for 10 months and started as a result of a tip-off, which led the BBC to approach Imran Saeed Sheikh, who is involved in the running of such schemes.

Mr Sheikh said that in return for £200, he could get students onto a two-year Higher National Diploma (HND) business course, at Grafton College in central London, so that they could get access to student loans.

He also provides the fake students with the assignments and attendance records necessary to keep them on the course, asking for £1,500 out of the loan annually.

When speaking to the BBC, Mr Sheikh stated: “We have a relationship with the college. The money you give us with that, we’ll make the system work inside.”

The fake students were also assured that this would not interfere with any other work commitments that they might have. Mr Sheikh further commented:

“You just sit like a dummy and keep nodding along. When the college gives you assignments, you don’t have to do them. These go directly to our agent in Pakistan. He gets people to do them.”

Similar schemes were also exposed at the Greenwich School of Management, where more than 4,000 students are enrolled.

Public Accounts Committee chairwoman Meg Hillier told the BBC that the private college sector had expanded rapidly and the government had not created a regulatory system that was fit for purpose.

Ms. Hillier added: “It’s got to crack down on what’s happened now, really investigate it. But it also has got to have a system that stops these chancers piling in and making money from the taxpayer.”

NUS President Shakira Martin also reacted to the news, telling the BBC: “These are horrible people who are exploiting our education system. The student finance system is ultimately broken.”

The BBC reports that approximately £400m is received by private college annually in the form of student loans.

The news also comes amidst recent controversy at the Student Loans Company, with chief executive Steve Lamey being sacked following investigations into his management and leadership.