Overseas students scam student loan system

Fraudulent student loan applications could be costing the taxpayer ‘hundreds of millions of pounds’ as a surge in the number of Romanian students is questioned

Bridget Phillipson has ordered the Public Sector Fraud Authority (PSFA) to assist in ongoing investigations into fraudulent maintenance loans handed out to students that have no intention of completing a course.

This followed an in-depth investigation by The Sunday Times, which found that there could be ‘organised recruitment’ of Romanian nationals being enrolled on courses as between 35% and 55% of new students are Romanian, with some claiming online to speak little to no English. They are recruited online and through aggressive telesales techniques.

In 2015-16 there were just 5,000 applicants from Romania, this has increased to 84,000 in 2023-24 and is higher than the number of students from any other country. If 80,000 students claimed the full maintenance grant of £25,000 outside of London, this could total as much as £200m a year in fraudulent claims.

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