Sir Julian Lewis: To ask the Secretary of State for Education, what steps she plans to take to ensure that the cost of loans advanced to (a) overseas and (b) domestic applicants subsequently found not to have seriously participated in higher education courses will not be borne by UK taxpayers; and what safeguards she plans to introduce to prevent student loan fraud in future.  [42388]

[Due for Answer on 3 April. Answered on 17 April.]

ANSWER

The Parliamentary Under-Secretary of State for Children and Families (Janet Daby): As a general rule, students are eligible for fee and maintenance loans only if they have settled status in the United Kingdom and have been ordinarily resident in the United Kingdom or the Republic of Ireland for three years. Students resident overseas are not eligible for loans.

The department and the Office for Students (OfS) have a programme of investigations underway. Where these investigations have found abuse of the student finance system, there will be serious consequences. We have now also asked the Public Sector Fraud Authority to tackle this threat and take forward this work across government. The department will always take steps to recover student loans that have been paid to students who have not been attending their courses. Depending on the precise circumstances, recovery has been and will continue to be pursued either from the institution or the student.

The department is consulting until 4 April on subcontracted provision. The consultation proposes changes to the requirements for courses to attract student finance that will necessitate subcontracted providers with specific numbers of students to be registered and regulated by the OfS. Together with the work of the OfS, which is currently consulting on reforms to its registration requirements, the department’s consultation will ensure subcontracted provision is better protected from poor quality and the risk of the misuse of public funding.

The department will also take immediate action on the use of agents to recruit students. The government can see no legitimate role for domestic agents in the recruitment of UK students. We are taking urgent steps to prevent any further abuse of the system.