BBC Panorama's investigation comes at a time of massive change in Higher education landscape in England, The Higher Education and Research Act, passed earlier this year, would create a powerful new regulator for higher education in England called the Office for Students. The government is also looking at whether new businesses could offer degrees from day one on a probationary basis, which could attract interest from companies operating elsewhere in the world.
About £400m-a-year is received by 112 private colleges through the student loan system. The government is keen to expand the sector as part of reforms designed to make degree and diploma courses more accessible to people who might otherwise find it difficult to enter higher education.
This year total student loan debt, from universities and private colleges, amounted to £100bn.
In todays BBC's Panaorama programme Plymouth University and GSM London college have been heavily implicated in student loan fraud, both institutions have declined direct involvement in the matter. You can see more on this story on Panorama, Student Loan Scandal on BBC One at 7.30pm on Monday 13th November and afterwards on iPlayer.
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