Question to the Department for Education:

To ask the Secretary of State for Education, what recent steps she has taken to reduce fraudulent claims for student loans.

My right hon. Friend, the Secretary of State for Education has asked the Public Sector Fraud Authority to coordinate action against the threat of the student funding system being exploited. The department will act on its findings and take quick decisions on whether we need to make more fundamental changes to the system.

There is a programme of investigations underway between the department and the Office for Students. Where investigations find abuse of the student finance system there will be serious consequences. The department will always take steps to recover student funding that has been paid in respect of students who have, for example, not been attending their courses. Depending on the precise circumstances, recovery will be pursued either from the institution or the student.

The Student Loans Company (SLC) is responsible for processing student funding loan applications and delivering student funding in line with student support regulations.

The SLC continues to monitor student funding applications for suspicious activity and will investigate where there are any concerns around individual applications or a collection of funding applications. Where fraudulent claims are identified, the SLC follows its published sanctions model which can result in individuals being ‘unfitted’ for support, and/or report to Cifas, a fraud prevention service in the United Kingdom.