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PROPHE Summary: The United Kingdom's new Higher and Further Education
Minister has indicated that alongside the introduction of top-up fees
across the UK in 2006, students at private institutions will become eligible
for the same level of state financial support as their peers in public
institutions. Calling it the beginning of a voucher system, the small
cadre of existing private providers champions the move. They claim that
private institutions serve a cost-saving public purpose, and that the
move creates the opportunity for leading public universities to consider
becoming privates, raising tuition rates, and potentially forming a British
"Ivy-League."
For the full story (shown with permission), see Guardian, October
2004. "Private University Students to Get State Support," by
Polly Curtis.
UK government financial support to students attending private institutions
is a significant policy change. At the outset it would affect only a small
fraction of UK students as the private sector remains small. It could,
however, entice some of the prestigious Russell Group institutions (twenty
or so leading research universities in the UK) to become private. Any
emergence of elite private universities would be remarkable, considering
their rarity outside the US. These British institutions could charge higher
fees than at present, since students would get some offsetting government
money. The "voucher" model is a key feature of US higher education,
bringing major public finance to private higher education. In recent years
there has been talk about a small number of "elite" US public
universities "going fully private" for similar reasons: less
government oversight and more flexibility to set tuition rates. That a
few public universities in several countries have or are considering related
privatizing shifts raises interesting questions about changing public/private
dynamics.
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