REVEALED: Barely literate students with no GCSEs being accepted onto university courses and given thousands of pounds in taxpayer cash they will never pay back

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Barely literate students with no GCSEs are being accepted onto university courses and being given thousands of pounds in taxpayer cash they will never pay back.

As hundreds of thousands of first-year undergraduates arrive in halls across the ­country this week, a Mail investigation has ­uncovered serious abuses of the higher education system.

Whistleblowers have told how courses are accepting students with such poor English that they cannot spell simple words, and who fail to attend classes as soon as they receive their first £4,000 maintenance loan and council tax exemption.

One source at a well-known ­university said they have seen instances of 'whole families' including elderly parents and grandparents enrolling on £9,250-a-year courses after being recruited by staff offering cash bonuses for new students.

FA second academic claimed that one of their students 'who could barely speak English' openly ­discussed how he was using some of his loan to build a home in Romania, while another lecturer in London said there were 'huge concerns that some people are just scamming the taxpayer.'

'They take anyone in off the street,' a separate lecturer warned.

The problem is said to be rife throughout the franchised ­university sector – where a ­university that awards the degree contracts another organisation to teach on its behalf, often in dingy office blocks on the outskirts of towns and cities for as little as eight hours a week.

In a recent report, the Office for Students (OfS) warned of 'serious risks to public money' after ­finding that staff managing ­partnerships were 'incentivised' to prioritise student recruitment above course quality, with ­allegations that some institutions lowered entry requirements to meet targets.

Now the Mail can reveal some recruiters are luring potential ­students in via social media, ­telling thousands of followers on TikTok and Instagram that 'the Government will pay you' to study and boasting how the money can be spent 'maintaining your travel addiction' and bankrolling ­'wedding season'.

Last night, a spokesman for the Department for Education described the Mail's investigation as 'truly shocking', adding: ­'Taxpayers' money should be invested in quality courses.'

Franchised universities partner with respected institutions but have much lower entry ­requirements, often accepting just two years' work experience over any formal qualifications like GCSEs or A-Levels.

The easy-to-access courses have been around since around 2011 and have become increasingly popular in recent years, with more than 300 franchised universities now teaching 138,000 students across the country – double the number of three years ago – as cash-strapped universities seek new revenue streams.

Subjects on offer include ­construction, tourism, health and social care, and business management.

Many well-known institutions, ­including Bournemouth ­University and Middlesex ­University, have opted to enter into ­franchised arrangements, which supporters say help ­disadvantaged communities access higher education. There is no suggestion that either of these institutions has acted unethically.

Earlier this year, however, the OfS announced it was opening an investigation into Leeds Trinity University and the quality of its contractual partnerships.

Anyone with settled ­immigration status can apply to the Student Loans Company (SLC) for a loan to go to university – £9,250 a year for tuition fees and up to £13,000 for maintenance – and those from low-income households or with children can access thousands of pounds more in free grants.

A Mail investigation has tracked down and interviewed academics and staff across the country who have all shared their growing ­concern at franchised partnerships. The names of the ­universities and franchised ­colleges in question cannot be ­published to protect the identity of the whistleblowers.

One staff member at a university in the Midlands that works with numerous franchised colleges said: 'The standard of student is well below what you would expect.

'We get students who come in, you will give them a password [for their account login], it's an everyday word, but they can't spell it.'

The staff member added: 'We find that, every so often, [the ­franchised provider] will do a ­little push and say if a student can get somebody to join, they'll be given a £500 bonus and, as a result, we have whole families doing the same course.

'They just join up. The son that would have perhaps enrolled on the course, he gets £500 to enrol somebody else, so mother, father, grandparents, sisters and ­brothers all try and join up on the same course.'

The whistleblower also warned that a 'considerable' number of students sign up for a course and disappear after receiving their first £4,000 maintenance loan before reapplying for another round the next year.

'After a few warning letters, they then withdraw from the course and reapply the following year saying, 'I was working, I couldn't do it'.'

They added: 'The main threat potentially is [we] are going to get an increased population of people who are going through the courses, taking money from the student loan system that they will never pay back.'

Another insider, who taught at a franchised provider in London for a few months before quitting, claimed the school 'fabricated the attendance data' of students who were 'underqualified' and had 'atrocious' writing skills.

'They really struggled with ­English but you were not allowed to fail them because that doesn't look good and the students wouldn't be happy,' the former lecturer said.

As lessons were online, many of the students 'were not even in the country', the academic claimed, adding: 'They must have been enrolled as UK students but had then gone to other countries.'

Classroom reports seen by the Mail reveal that in just the second week of term, students were not turning up to class, phoning in sick, and logging in remotely over Zoom but quickly disappearing from their computers. The lecturer was left with no decision but to quit after ­realising very few students were there to learn.

'It is all to do with funding,' the teacher said, 'the students are happy because they are getting their funding, the institution is happy because they are getting their funding, the university is happy because they are getting their funding.

'I didn't get the impression anyone will be paying back loans, especially if they are not even in the country. The majority of the people were ­unemployed as far as I can tell.'

A health and social care ­academic at a centre outside of London said the university's 'intake is ginormous' and her classes have included 'grand­parents' in their 60s, a man who openly discussed using his finance to build a house in ­Romania, and one man who was a chef and 'that's all he ever wanted to do'. 'Most are there honestly for the money, or they're very misguided about what the qualification is going to do [for them],' the ­lecturer said.

'They get a laptop, they get broadband paid for them at home, as well as all this help to not pay council tax, and then, of course, they'll never be in the type of ­professional jobs where they never have to pay back the loan.'

A parliamentary report found that detected fraud at franchised universities has ballooned from £330,000 in 2018/19 to £2.1 million last year – which amounted to 53 per cent of the £4.1 million fraud identified, the Public Accounts Committee warned.

Susan Lapworth, the chief ­executive of the OfS, said: 'We are concerned about the findings of this investigation. Where a ­university delivers courses through a franchise arrangement with another higher education provider it must ensure that the quality of those courses remains high.

'That includes making sure students recruited onto courses have the commitment and ability to succeed. It also includes ­making sure there are proper ­controls to protect public money.

'The OFS is working on these issues. We have announced ­investigations of some providers engaged in franchising and are taking steps to ensure all universities are properly gripping these partnerships. We will continue to work with the Department for Education, the Student Loans Company and others on these important issues, including to advocate for the powers we need to regulate effectively in this area.'

A spokesman for the Department for Education said: 'These allegations are truly shocking. It is clear that we have inherited a student finance system open to exploitation from systemic and organised fraud and abuse and this government will leave no stone unturned in rooting out this kind of appalling behaviour, if proven.

'Protecting taxpayers' money is a priority for this government given the black hole in the ­public finances. Taxpayers' money should be invested in ­quality courses.

'The new Education Secretary took urgent action within weeks of taking office to refocus the role of the Office for Students on to key areas including financial sustainability, ensuring quality, protecting public money and regulating in the interests of students.

'Franchise provision can help open-up the opportunity of a ­university education for different students, but the OfS has a clear responsibility to ensure that these providers are adhering to their responsibility to protect public money.'