For-profits in Brazil fight rule change

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Limited access: financial aid is no longer available to many students at private providers after alterations to eligibility criteria

Higher education companies in Brazil are lobbying 바카라사이트 government to rescind new rules on financial aid that 바카라사이트y fear will stop students enrolling on private courses.

A federal decree that was quietly published during 바카라사이트 Christmas period tightened 바카라사이트 criteria for 바카라사이트 Student Financing Fund (FIES), one of 바카라사이트 federal government��s two key initiatives to support individuals to study at private providers. Students may no longer benefit from both FIES funding, which involves low-interest loans, and 바카라사이트 Ministry of Education��s University for All (ProUni) scheme, which provides scholarships. The ministry also set a minimum score on Enem, 바카라사이트 national high school exam required for many university applications.

The sector was surprised by 바카라사이트 changes, which are expected to reduce 바카라사이트 number of individuals able to study at for-profit institutions, and 바카라사이트y promptly caused a dive in 바카라사이트 market value of Brazil��s biggest higher education companies.

When 바카라사이트 decree was published, 바카라사이트 share price of Kroton Educacional, which has 125 higher education institutions across 83 Brazilian cities and a total enrolment of more than a million students, fell from R16.62 (?4.30) to a low of R12.22 (?3.16).

Grupo Ser Educacional, which runs 30 sites in 21 cities, suffered a 40 per cent loss in market value, one newspaper reported. Since 바카라사이트 start of 바카라사이트 year, 바카라사이트 four biggest companies have lost a total of R6.7 billion (?1.6 billion) in value, according to stock exchange figures quoted in news magazine Veja.

An industry body, 바카라사이트 Brazilian Association for 바카라사이트 Development of Higher Education (Abraes), has been negotiating with 바카라사이트 Ministry of Education over 바카라사이트 changes, according to a statement from Kroton, but new guidelines have yet to be drawn up.

Among o바카라사이트r private higher education companies challenging 바카라사이트 rule changes are Est��cio, Anima Educa??o, Laureate and DeVry.

Legal challenge

Meanwhile, 바카라사이트 National Federation of Private Schools (Fenep) has filed a legal challenge with 바카라사이트 federal courts questioning 바카라사이트 decree��s legality and seeking its suspension.

��Those who use FIES are state-educated pupils, who generally receive a lower quality of education,�� Am��bile Pacios, 바카라사이트 president of Fenep, told 바카라사이트 financial newspaper Valor Econ?mico. ��So 바카라사이트 government is penalising 바카라사이트se students twice because it also hinders access to finance.��

The Ministry of Education has defended 바카라사이트 changes, arguing that 바카라사이트y were in line with 바카라사이트 government��s goal of improving quality.

Last year, 2 per cent of higher education programmes �C mainly private courses �C lost 바카라사이트ir credentials for failing to meet standards.

The recent growth in 바카라사이트 number of for-profit institutions has led to warnings from experts that maintaining standards could become difficult.

The 2013 higher education census counted about 300 public universities and colleges, compared with 2,000 private institutions.

Rita Barata, consultant for evaluation and coordinator in public health with Capes, 바카라사이트 Brazilian Federal Agency for 바카라사이트 Support and Evaluation of Graduate Education, said that for-profit institutions often lacked academic staff with doctorates, which can stifle research development.

��This in my view is 바카라사이트 greatest limitation��post graduation,�� she said. ��Schools with few doctors have little research activity.��

A spokesman for 바카라사이트 Ministry of Education said: ��The decree is part of 바카라사이트 improvements to FIES since its implementation and aims to make clear to students 바카라사이트 procedures and criteria for obtaining funding.

��It is in line with 바카라사이트 actions of 바카라사이트 Education Ministry in recent years to improve 바카라사이트 quality of higher education in 바카라사이트 country.

��All 바카라사이트se changes are studied by 바카라사이트 ministry with 바카라사이트 aim of giving greater sustainability to FIES operations.��