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PROPHE Summary (by Prachayani Praphamontripong): New governmental rules have opened ways for private providers focused
on teaching and training to apply for UK degree-granting powers and
university status. Some teaching-only institutions are private companies.The
new rules will not require universities to carry out research if they
maintain 4,000 full-time students. Private providers now proceeding
to the degree-granting status include the professional training company
BPP, the College of Law, and the Financial Training Company (part
of Kaplan Inc.). If approved, the tuition-charging institutions hope
to become more competitive in Europe and they could challenge the
UK's public institutions in some fields.
For the full story (shown with permission) see The Times Higher Education
Supplement, July 1, 2005, "Private Sector Muscles In," by
Claire Sanders.
PROPHE Observation (by Daniel C. Levy): The UK has had only one private university but the new rules referred
to here could open the way for more degree-granting private higher education.
Worldwide, such education focuses much more on teaching and training
than on research so that requirements to do research restrict private
growth. It may seem odd that new rules allow degree-granting authority
for non-research institutions only if they have at least 4000 full-time
students; the rationale is probably that a degree-granting institution
should have some heft, but globally it is usually the larger private
institutions that may do research. As is often the case, public higher
education has fears of the new competition, while the pro-private elements
point to U.S. precedent and the benefits of market competition in some
fields. Also vulnerable to new competition could be public university
programs that already charge hefty tuition to overseas students. Although
the article does not clarify, it appears that some of the private providers
could be for-profit.
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