Franchised higher education courses face tighter rules to curb ‘rogue operators’
Franchised higher education courses face tighter rules to curb ‘rogue operators’
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Providers delivering franchised higher education courses in England face tighter controls in a bid to crack down on “rogue operators who misuse public money”, the Government has announced. Franchised providers – external organisations that operate in partnership with registered universities to deliver courses on their behalf – with at least 300 students would be required to register with the Office for Students (OfS) to access student loan funding under the plans.
It is hoped the proposals by the Department for Education (DfE) – which are out for consultation – will ensure courses meet rigorous quality standards. The Public Accounts Committee (PAC) warned last year that a lack of Government oversight of franchised higher education providers had left the student loan system open to fraud.
A National Audit Office (NAO) investigation found that 53% of the £4.1 million fraud detected by the Student Loans Company by value in 2022/23 was at franchised higher education providers in England. More than half of 341 franchised institutions are unregistered with the OfS, England’s higher education regulator, meaning they are not directly regulated, the DfE said.
In some cases, students are offered poor-quality courses that fail to justify their cost, it added. In September, the OfS warned there were “risks” to students, taxpayers and the reputation of universities if there was no proper oversight of franchised higher education provision.
