Bridget Phillipson, the Education Secretary, has announced a crackdown on student loan abuse following serious allegations against Oxford Business College (OBC). The college’s actions are under a hot spotlight. It’s been feared that some people were fraudulently cashing in on millions in student loans, with no plans to actually study, calling into question the for-profit’s hiring and enrollment practices.
Phillipson became aware of “credible concerns about the recruitment and attendance of students” at OBC last year. In turn, she has called for an investigation by the Government Internal Audit Agency to review the college’s activities. However, the findings showed that these best practices in recruitment and attendance management at OBC were “suboptimal at best.” Phillipson described the situation as “one of the biggest financial scandals in the history of our universities sector” and has expressed her determination to address these issues.
To obtain more irritating fraud, Phillipson has hired counter-fraud experts to drill down on the possibility of malfeasance. But she says she is especially worried that there could be “organised recruitment” of Romanian nationals signing up to courses at OBC. This narrow focus comes from controversy over fraud claims that have some people pissed that some bad actors are abusing the student support system.
Phillipson stated, “It is clear to me that the management of recruitment and attendance at the college has fallen well short of the standards I am entitled to expect. This is unfair on those students who have genuinely wished to study.” Her comments further highlight her commitment to making sure that federal financial aid only goes to the students who truly deserve it.
In the wake of these moves, Phillipson declared all courses at OBC to be de-designated as of September 2025. She emphasized that this decision reflects her determination to stamp out any abuse of the student support system, stating, “I will not hesitate to do the same again if circumstances justify it.” According to the college’s administration, this action is illegal. They intend to appeal it and take it on by way of judicial review.
Even with these hurdles, Phillipson wanted to instill confidence to “genuine” students at OBC. He guaranteed them that they would be able to switch to other classes through the end of the school year. They can keep their maintenance and fee support as long as they “continue to make satisfactory progress in their Program of Study.”
Our investigation found that OBC offered classes from five of these six registered schools combined. Most of these institutions have terminated their contracts with the college. Others have placed even stricter controls due to their ongoing fear of its practices.
Oxford Business College released a statement asserting, “The Department for Education’s lengthy investigation into Oxford Business College concluded with no findings of malfeasance.” Now the small private college is under heavy criticism for how it has operated and whether it can survive in the future.
Phillipson is undeterred, continuing her campaign to reform the broken student loan system. We’re excited that she’s committed to defending student interests and ensuring public money is spent most effectively! We’re committed to stopping people from illegally getting student loans with no real desire to pursue a course of study,” she added.
