A college that was investigated by the government over its franchised provision will no longer be able to access student loan funding after “falling well short” on recruitment and attendance.

Education secretary Bridget Phillipson has taken action against Oxford Business College, with many of its existing students being offered transfers to alternative courses.

Phillipson said “credible concerns” had been raised about the college, which, because of its university partnerships, had been able to offer courses that were eligible for student support.

These were investigated by the Government Internal Audit Agency, Phillipson revealed in a , which has now been concluded.

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“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,” she said.

“In particular, the investigation has not been able to provide me with assurance that students’ prior attainment, including their competence in the English language, has been adequately assessed, or that their attendance on their courses has been adequately monitored.”

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Oxford Business College said it would be challenging the decision. The provider has five English campuses; in Oxford, Nottingham, Slough and two in London, and offers degrees in areas such as business, events management and health and social care. Its partners include the University of West London, Buckinghamshire New University and New College Durham, according to its website. 

Phillipson said the college had been partnered with five institutions registered with the Office for Students. Many of these “have already terminated their agreements with it or have imposed additional controls”, she said.

New students enrolling at the college will not be eligible for student support “with immediate effect” and students on existing courses are being given the opportunity to transfer to complete their studies.

Partner institutions have been given until the end of the current academic year to complete these transfers, with those students affected able to retain their maintenance and fee support during this period “provided they remain engaged with their studies”.

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“These decisions reflect my determination to stamp out any abuse of the student support system. I will not hesitate to do the same again if circumstances justify it,” Phillipson said.

In a statement provided to the  the college said the DfE’s lengthy investigation concluded with “no findings of malfeasance”.

“Despite this clear outcome, the DfE has indicated that courses will be de-designated as of September 2025 – a decision OBC firmly believes is unlawful and will challenge through judicial review. Safeguarding our students’ interests remains our absolute priority.”

Concerns about student loan fraud have prompted closer scrutiny of franchised provision in England in recent years, heightened by negative media stories.

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The government has already outlined proposals that would require all providers with more than 300 students to register with the OfS. A consultation on the plans ended at the start of this month and a government response is expected shortly.

tom.williams@timeshighereducation.com