Students at a London-based private higher education college have been told to transfer to a new provider if they wish to continue accessing student finance as the regulator investigates concerns over quality and management.

The Department for Education?has de-designated courses at Brit College, meaning existing and new students will no longer be eligible for government-backed loans to study there.?

In January the Office for Students (OfS) opened an investigation into the college to look at whether it has complied with registration conditions including those related to the quality of academic provision and effective governance processes. The investigation is ongoing.

The latest decision affects about 250 students currently studying for a Pearson Higher National qualification at the college.?

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According to the regulator, Pearson is supporting the college to ensure students have guidance on continuing their studies elsewhere.?

Students can also decide to end their studies and receive credits for their academic achievements to date.

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¡°This will be upsetting news for students at Brit College,¡± said Philippa Pickford, director of regulation at the OfS. ¡°We will continue to work with Pearson and others to ensure students are properly supported at this difficult time.¡±

It follows the closure of Applied Business Academy, a London-based private institution, last September.

An OfS investigation into the college, which was aborted after the institution closed, found work placements essential to students¡¯ courses were being recorded as taking place at businesses that had ceased to operate.?

Earlier this year, education minister Bridget Phillipson pledged to crack down on franchise partnerships in higher education after further evidence emerged of fraud in the sector, including some faux students claiming government loans despite having no intention of studying.

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Pickford continued, ¡°Universities and colleges are responsible for running their businesses effectively. It¡¯s important that students and taxpayers can be confident that institutions have robust systems in place to safeguard public funding and ensure that students¡¯ interests are protected.¡±

helen.packer@timeshighereducation.com