Private Sector And Students Profit At The College They Call ‘the ATM’

The London School of Science and Technology (LSST) is a private college located in Wembley, northwest London. The institution has grown rapidly in recent years, currently boasting 1,500 full-time students and ranking as the fourth largest of its kind in the UK. LSST’s success is thanks in part to government-led changes in funding that relaxed restrictions on student loans. However, an undercover investigation by The Guardian has prompted allegations of fraudulent enrollment practices and lax standards. The report claims LSST has allowed students with inadequate literacy skills and limited English proficiency to enroll in its undergraduate courses. Furthermore, its students often fail to complete diplomas, with coursework submission rates hovering around 40%. One former senior college staff member believes this is because LSST prioritizes increasing turnover at the expense of academic outcomes. The college denies all allegations. However, The Guardian has spent months in consultation with whistleblowers and reviewing material that suggests the college is operating more like an "ATM" or a "cashpoint" than an educational institution.

LSST was established back in 2003 and is owned by the Zaidi family. Syed Zaidi, who is the director of the college and owns 75% of the shares, declined to provide an interview but did provide a written response. Over the years, tuition fees at various universities have been continuously on the rise, resulting in new private providers receiving more than £1bn. What is astonishing is that the growth rates have been remarkable. A well-known college group known as the London School of Business and Finance went from having 50 to 6,000 funded students in just one year. According to the latest official figures, it appears that there could be around 60,000 potential private students eligible for funding. This year, the government projects that these providers will receive an additional £900m in funding.

The colleges have adopted different methods of recruitment and marketing strategies to maximize enrolment. Regular universities enrol students in September or January, whereas private colleges typically enrol every two months. However, the Department for Business, Innovation and Skills (BIS) has stopped funding for domestic students enrolled at LSST after discovering that the college had opened campuses in Luton and Hounslow without the proper permission.

LSST remarked that it is subject to "a high degree of external scrutiny, including that of the achievement data and the inputting efforts around teaching and learning", and added that students have reported favourably "internally and externally" about the opportunities given to them. Despite the criticisms received, LSST stated that it continuously strives to improve its process and work towards updating systems.

Various staff and students have approached Guardian with concerns and complaints, and this is not unique to LSST. Recently, the BIS requested colleges to submit audited accounts and demonstrate a financially sustainable business plan. As such, no one can give a definite answer to how much of the £1.4bn in loans and £500m in grants given to students at these alternative providers went to genuine students. What is known is that the outlay caught BIS off guard and affected students studying at established universities.

The government had to make several unplanned cuts to budget allowances for disabled students and increased participation of students from poorer backgrounds in the university sector to deal with major fiscal challenges. According to Willetts, speaking to the Guardian, the regulatory regime has been improved, and the government would "collect back" student loan money that was falsely claimed. He stated that expanding education opportunities is a good thing and that the diversity of provision is in the interest of students.

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  • ronniecochran

    I am a 26 year old educational blogger. I enjoy writing about education and sharing helpful tips and advice with others. I also enjoy spending time with my family and friends.