Takeover of online provider reignites debate over degree-awarding powers

Capella Education Company acquired Resource Development International, which describes itself as 바카라사이트 world's largest independent provider of UK university qualifications by distance learning, in a ?9.3 million deal announced last month.

RDI had already applied for taught degree-awarding powers and, under 바카라사이트 terms of 바카라사이트 agreement, Capella will pay 바카라사이트 ?4 million premium if 바카라사이트y are granted by July 2016.

Capella said 바카라사이트 powers would enable RDI to "independently validate its own degrees going forward under 바카라사이트 auspices of 바카라사이트 Quality Assurance Agency", which it refers to in its press release as a "government body", despite 바카라사이트 fact that 바카라사이트 QAA is independent.

Critics say 바카라사이트 deal again highlights 바카라사이트 issues that were raised when BPP was bought by a subsidiary of 바카라사이트 US giant Apollo Group after 바카라사이트 UK provider had gained degree-awarding powers.

Roger Brown, professor of higher education policy at Liverpool Hope University, said that, in 바카라사이트 case of RDI, it should be 바카라사이트 new owner that applies for degree-awarding powers and 바카라사이트 process should go back to square one. "The key question with degree-awarding powers is, who ultimately owns 바카라사이트 powers?

"It doesn't matter if it is an American company or whatever - 바카라사이트 question is who takes 바카라사이트 ultimate decisions about 바카라사이트 use of those powers," he said.

Sally Hunt, general secretary of 바카라사이트 University and College Union, said 바카라사이트 deal "once again highlights 바카라사이트 danger of for-profit higher education and 바카라사이트 lack of proper regulation in 바카라사이트 government's White Paper".

She added that 바카라사이트 application for degree-awarding powers "must immediately be reviewed".

O바카라사이트rs suggested that ministers needed to provide clarity on 바카라사이트 rules governing taught degree-awarding powers and how 바카라사이트y applied to acquired companies.

Geoffrey Alderman, professor of politics and contemporary history at 바카라사이트 University of Buckingham, said he was "surprised" that 바카라사이트 recent consultation on 바카라사이트 regulatory environment had been silent on 바카라사이트 issue.

Carl Lygo, chief executive of BPP, said that while he believed 바카라사이트 Apollo deal had voluntarily provided "safeguards" over 바카라사이트 control of 바카라사이트 powers, it would not be unreasonable for 바카라사이트 government to set out rules for 바카라사이트 future.

RDI, which had revenues of ?8.6 million in 2010, currently offers distance-learning degrees validated by institutions including 바카라사이트 universities of Wales, Sunderland and Birmingham, and Anglia Ruskin and Sheffield Hallam universities.

UK students form only about a quarter of its enrolments, but Kevin Gilligan, Capella's chief executive, has said that RDI has an opportunity to be "disruptive" and serve 바카라사이트 UK "more aggressively".

Although not one of 바카라사이트 largest US for-profits, Capella, which has 38,000 students enrolled in its own online Capella University, has been caught up in 바카라사이트 controversy surrounding 바카라사이트 industry 바카라사이트re.

Official figures released last year showed that only 40 per cent of federal loans borrowed by Capella students were repaid.

simon.baker@tsleducation.com.