Private college funding to hit £1 billion

Nearly £1 billion in state-backed funding will be paid to students at private colleges next year.

March 28, 2014

In a written parliamentary answer published on 28 March, universities and science minister David Willetts said his department expects the amount of taxpayer-backed loans awarded to private college students to rise to £650 million in 2014-15, up from £400 million this year.

That represents almost a 22-fold increase in student loans at private colleges since 2010 when just £30 million was awarded in loans to students at private higher education providers.

Another £250 million will also be awarded in non-repayable maintenance grants to students at private college students in 2014-15 – taking the overall student support to £900 million.

That expenditure is roughly equivalent to the total income received by four to five mid-sized public universities.

In 2015-16, some £850 million of student support will be awarded to students at private colleges, Mr Willetts also said.

Liam Byrne, the shadow universities, science and skills minister, said: “It’s now vital we know how much this free market free for all is costing taxpayers in private profit.”

He added that “we can’t go on like this”.

The rapid rise in student loan payments follows the liberalisation of  policy to allow private providers to compete with public universities.

However, concerns over the costs of extra recruitment last year led the government to freeze recruitment at 23 of the fastest-growing colleges until September.

Sub-degree qualifications such as higher national diplomas have seen the greatest expansion, with student numbers growing six-fold in 2012-13 to 15,000.

Last month Times Higher Education revealed that two private colleges, GSM London and St Patrick’s International College, each now receive more Student Loans Company funding for their teaching than the London School of Economics.

News of the increased student support comes as teaching budgets at public universities were slashed by 6 per cent last month.

A spokesman for the Department for Business, Innovation and Skills said the government wanted to “offer students more choice and flexibility in how and where they study by increasing the range and type of opportunities that are available to them.

“Encouraging new alternative providers into the marketplace is one of the ways that we will achieve this.”

Student number controls will apply to alternative providers in 2014-15 and other controls will remain in place in 2015-16 when student number controls are lifted, he added.

jack.grove@tsleducation.com

You've reached your article limit

Register to continue

Registration is free and only takes a moment. Once registered you can read a total of 6 articles each month, plus:

  • Sign up for the editor's highlights
  • Receive World University Rankings news first
  • Get job alerts, shortlist jobs and save job searches
  • Participate in reader discussions and post comments
Register

Reader's comments (1)

Public sector institutions have contributed immensely in selected disciplines, e.g. medicine (thanks to public funded NHS). However, their contribution in some other areas e.g.- accountancy, business, law and IT was rather limited. I support government's attempt to diversify the HE sector. I would hope that private providers should be given opportunities to promote higher level employability and enterprising skills to non-traditional students. Private providers should focus on creating new generations of skilled professionals/businessmen rather than academics with only theoretical knowledge taught by people who never worked in organisations other than educational institutions.

Have your say

Log in or register to post comments

Most Commented

question marks PhD study

Selecting the right doctorate is crucial for success. Robert MacIntosh and Kevin O'Gorman share top 10 tips on how to pick a PhD

Pencil lying on open diary

Requesting a log of daily activity means that trust between the institution and the scholar has broken down, says Toby Miller

India, UK, flag

Sir Keith Burnett reflects on what he learned about international students while in India with the UK prime minister

Application for graduate job
Universities producing the most employable graduates have been ranked by companies around the world in the Global University Employability Ranking 2016
Construction workers erecting barriers

Directly linking non-EU recruitment to award levels in teaching assessment has also been under consideration, sources suggest