A recent investigation has revealed that over 5 million pounds have been given to overseas students in loans - students who were ineligible to receive them.
The National Audit Office, the U.K. government’s spending watchdog, conducted an inquiry that reveals that 992 foreign students who were not entitled were handed out government loans. These students were reportedly enrolled at private higher education colleges.
The information was brought to front after there was a surge in financial help applications for living costs from European Union nationals. The investigation by the National Audit Office showed that from more than 11,000 financial help applications, around half the people were unable or refused to furnish any proof that they were truly in need and entitled for the support.
Alerted by those numbers, the Department for Business, Innovation and Skills refused further payments and ordered nearly 23 educational institutes to suspend recruitments with the fear that state funds and the education system were being misused.
Margaret Hodge, labour MP and chairman of the Commons public accounts committee stated that the 5.4 million pounds that were granted to ineligible students can only be described as incredible.
Another shocking fact that came to light after the investigations is that the drop-out rate in private education institutes is a substantial 20% compared to the 4% in state-funded institutions. Margaret Hodge stated that this astounding rate of drop outs within the private sector should have set off alarm bells. She stated that it was the responsibility of the state to keep a check on where taxpayers’ money was being spent.