The rise of for profit higher education?
As we have noted here recently, the British Minister of State for Universities and Science, David Willetts, appears to feel that more private for-profit institutions should be encouraged to play a role in English higher education. For those who may feel, like the Minister, that for-profit colleges will apply a market discipline and bring greater efficiency and choice, it is worth noting recent information coming from America that only 22 per cent of new entrants to such colleges actually graduate within six years. While some of the reasons for this may be related to the backgrounds of the students taken in, it is still an unacceptable performance and should give some considerable cause for concern.
Of course there are some high quality private institutions of this kind, including one or two in Ireland, but across the board there must always be questions about the idea of a ‘university’ that has to organise itself in a way that will secure significant profits and thus dividends for shareholders. I am not against participation in higher education by for-profits, but I would strongly suggest that this is not the answer to almost any issue that is currently of concern to the sector; and furthermore if new private institutions are pushed into the market too aggressively there could be serious problems in the medium term if some of them run into quality issues.
A better model might be for universities to enter into partnerships with some for-profit institutions that can provide services in an appropriately monitored environment.