Dubious university ‘franchise’ courses are signing up students with ‘very weak’ English and low attainment, an education watchdog has warned.
The Office for Students (OfS) said there was a risk taxpayer money was being wasted on courses that were ‘not good value for money’ or to fund people who ‘do not genuinely intend to study’.
The courses are ‘validated’ by proper universities but sub-contracted out to external providers, who in some cases appear to be letting standards slip.
The students recruited are disproportionately migrants who have leave to stay in the UK, and 62 per cent are studying business and management courses.
Students on these providers now make up 5 per cent of all students – after doubling to 138,000 since 2019.
The Office for Students (OfS) said there was a risk taxpayer money was being wasted on courses that were ‘not good value for money’. (Stock image)
Students have also paid agents or other third parties to falsify English language tests to get onto courses. (Stock image)
They are all eligible for taxpayer-provided tuition fee loans of £9,250 and maintenance loans of up to £13,348 a year.
The OfS compiled a dossier of examples of questionable practices involving third-party courses.
It found students are being recruited via third party agents, with some giving ‘inaccurate information’ in ‘attempts to sign them up’.
Some are offering ‘financial incentives’ to get students onto courses that are ‘not right for them’, and claiming the Government will ‘pay them to study’.
They have also told students their ‘very weak English skills’ are enough for the course, without any extra support when they arrive.
Students have also paid agents or other third parties to falsify English language tests to get onto courses.
In some cases, franchised courses have persuaded universities to allow them to lower entry requirements so they can recruit more students.
And once on the courses, some students have submitted assessments written by someone else, ‘in some cases with the complicit support of staff members’.
The OfS said: ‘Students’ opportunities will not be extended if they are recruited onto courses that are poorly delivered, lead to weak student outcomes, or are not well suited to their level of English language proficiency or prior educational experience.’
In 2022-23, 53 per cent of the £4.1 million fraud detected by the Student Loan Company arose in relation to students studying at franchise courses.
Data shows franchise courses have higher drop-out rates than the sector as a whole.
The report added: ‘Students have been encouraged to register for courses that they do not genuinely intend to study, to access public funding through maintenance loans.’
The OfS noted that commissioning sub-contractors may be an ‘attractive option’ to universities facing financial difficulties and wanting to ‘generate income’ through larger student numbers.
Data shows franchise courses have higher drop-out rates than the sector as a whole. (Stock image)
In some cases, franchised courses have persuaded universities to allow them to lower entry requirements so they can recruit more students. (Stock image)
It added: ‘The data and intelligence we hold suggest that this has been at least part of the motivation for some lead providers.’
The OfS vowed to intervene when the use of franchised providers places the interests of students or taxpayers at risk.
David Smy, deputy director for enabling regulation at the OfS, said: ‘There are serious risks to public money where these arrangements are not managed properly.’
A spokesman for Universities UK said: ‘Franchised provision plays an important role in supporting growth and opportunity.
‘However, we are not complacent about the concerns raised recently and we have in place our own franchise governance framework which promotes greater controls in the management of franchised provision.’