Police believe Salman Abedi paid for his travel to Libya, rent on three houses and even the bomb materials with student loans, given to him although he had dropped out of his degree.
The bomber's funds are a 'theme' in the investigation as officers probe how easily jihadists can manipulate the welfare and student loans system in Britain.
Abedi enrolled in a Business Administration degree in 2015 at Salford University and was given £7,000.
He was given another loan of £7,000 the next year, though he had already dropped out.
According to the Telegraph, one former detective said the university and student loan system is an easy way to finance activities.
Abedi did not have a job, but managed to pay for flights to Libya, where he received bomb-making training, and rented three apartments in Manchester, paying for one with cash.
He also withdrew £250 in cash three days before the attack and transferred £2,500 to his brother Hashim.
Salford University declined to tell the Telegraph if the Student Loans Company had been told he dropped out.
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