In 2022/23 there was a total of £4.1m worth of fraud detected through student loans, with more than half committed by franchised providers, according to a National Audit Office report, which said that governance and oversight needs to be strengthened.

Following a five-year Student Loan Company investigation, it found that 53% of all student loan fraud was detected in franchised providers. Students at these institutions make up a tiny proportion of total students (6.5%) applying for student loans.