In America, for-profit providers enrol 13% of students, but account for over 40% of student loan defaultsby Jonathan Clifton / May 31, 2016 / Leave a comment
Alternative providers who want to set up new universities will find it easier following recent legislation by the government. Universities Minister Jo Johnson wants to free-up the market , making it easier for alternates to award their own degrees and recruit students funded through the loan system. He hopes these new providers (which could include a mixture of profit-making and not-for-profit organisations) will challenge existing universities to raise their game, and provide more innovate types of education.
There is some merit in this but past experience suggests the government must tred carefully. Instead of ushering in dynamic and high quality “challenger institutions,” it could unwittingly enable private providers in setting up poor quality courses in an attempt to make a quick buck.