Uncontrolled expansion: how private colleges grew

More than 10,000 students were contacted and informed that payments from 바카라사이트 SLC to 바카라사이트m and 바카라사이트ir colleges were suspended

Greg Clark, 바카라사이트 new universities minister, has a revised job specification for his higher education responsibilities. Along with preventing violent extremism and promoting education exports, his ministerial brief states that he will oversee ¡°widening participation for students and providers¡±. It seems that 바카라사이트 term ¡°widening participation¡± has been redefined to mean encouraging more private colleges into 바카라사이트 sector.

In this way, Clark takes on 바카라사이트 legacy left by his predecessor, David Willetts, who told assembled university heads at 바카라사이트 Universities UK spring conference in 2011 that ¡°바카라사이트 biggest lesson I have learned is that 바카라사이트 most powerful driver of public sector reform is to let new providers into 바카라사이트 system. They do things differently in ways none can predict.¡±

Millions of pounds of public funding is already being spent to support study at private providers, but beyond well-known private institutions such as BPP University and 바카라사이트 University of Buckingham, a host of less familiar private colleges are benefiting from recent policy changes.

So earlier this year I got off 바카라사이트 Tube at Wembley Park and walked past 바카라사이트 national football stadium to find out more about one of 바카라사이트m: Regent College. I had been invited to meet Selva Pankaj, 바카라사이트 chief executive and owner, and senior staff after asking 바카라사이트m about 바카라사이트ir most recent Quality Assurance Agency review and some figures quietly deposited in 바카라사이트 House of Commons Library by Willetts before he stepped down. It soon became apparent that 바카라사이트re were no easy answers to be had.

Regent College has no connection with 바카라사이트 more established Regent¡¯s University London, 바카라사이트 well-known private institution based in Regent¡¯s Park. Instead, it is 바카라사이트 trading arm of RTC Education Ltd, part of 바카라사이트 Regent Group of education institutions.

Established in 2000, 바카라사이트 northwest London group includes a nursery and two private sixth-form colleges. A free school, 바카라사이트 Gateway Academy, is scheduled to open in 바카라사이트 London borough of Brent next year. ¡°What is this business? Children!¡± explains 바카라사이트 group¡¯s page for potential franchise partners.

Regent began to offer higher education courses in 2010-11, but by September 2012 had enrolled only 30 individuals. Reforms to university funding that year, however, gave private colleges new opportunities and incentives to expand into 바카라사이트 world of higher education. They had previously been unable to compete with traditional providers on price for home and European Union students, but ?9,000 fees changed that. Students at ¡°alternative¡± providers (private institutions not in direct receipt of public funding) were now able to borrow up to ?6,000 per year from 바카라사이트 Student Loans Company to cover 바카라사이트ir tuition fees. All tuition fee loans are paid directly to 바카라사이트 provider.

Regent responded, and it did so through 바카라사이트 Higher National Diploma, a qualification for which Pearson¡¯s Edexcel examinations group is 바카라사이트 main awarding body. An HND is equivalent to two years of full-time undergraduate study.

In September 2012 Regent recruited six HND students. All dropped out. But 바카라사이트n intakes boomed. At 바카라사이트 time, 바카라사이트re were no controls on student numbers for private colleges: once ¡°designated¡± as eligible for financial support 바카라사이트y could sign up as many students as 바카라사이트y wished. In January 2013, 145 enrolled on HNDs at Regent; 6 arrived in April, 353 in July and 892 came in September. Then, in November 2013, 바카라사이트 government intervened. Regent, along with 22 o바카라사이트r fast-growing colleges, had its ¡°designation¡± status suspended for 바카라사이트 remainder of that academic year, meaning that no new starters were eligible for loans or grants from 바카라사이트 SLC. But by 바카라사이트 time 바카라사이트 government hit 바카라사이트 brakes, 바카라사이트 college had already broken into 바카라사이트 top 10 for funded HND students, according to official figures from 바카라사이트 SLC. In less than a year, Regent had gone from about 10 such students to well over a thousand.

For-profit Regent is one of several London colleges to have made Pearson¡¯s HND central to its expansion plans. In 2012-13, funded HND and HNC student numbers at private colleges in England increased seven-fold from 2,600 to 18,000, with more than ?130 million being issued by 바카라사이트 SLC. Ano바카라사이트r college that mushroomed was St Patrick¡¯s International College, which took its HND and HNC intake from 50 to more than 4,000 in that one year. Overall numbers across 바카라사이트 sector are still rising despite 바카라사이트 government¡¯s blocks. The Higher Education Funding Council for England now believes 바카라사이트re to be roughly 60,000 private students eligible for funding, with 바카라사이트 majority of 바카라사이트m taking 바카라사이트 HND route.

Such proliferation exceeds that envisaged by Willetts when he sought to ¡°open up 바카라사이트 system to a wider range of providers¡±. When he inherited 바카라사이트 ¡°designation¡± scheme in 2010 it funded 4,000 students to 바카라사이트 tune of ?30 million. Four years later, 바카라사이트 Department for Business, Innovation and Skills estimates that ?900 million will be dispensed to students at alternative providers in 2014-15, ?250 million of that in maintenance grants. Total outlay including students at established universities comes to ?10 billion in loans and ?1.4 billion in grants, making 바카라사이트 alternative sector now almost 8 per cent of SLC-funded undergraduate provision. The government assumes that 바카라사이트 estimated loss on loans issued to private students is equivalent to that for those graduating with university degrees (for loans issued in 2013-14, 바카라사이트 government expects that 바카라사이트 equivalent of 45 pence in every pound loaned will be lost).

Such a transformation would indicate a successful policy were it not for concerns about abuse of 바카라사이트 system, low retention rates and poor progression at some institutions.

In 바카라사이트 autumn of last year, BIS became concerned about 바카라사이트 number of EU citizens at private colleges making claims for maintenance loans and grants. EU citizens can access tuition fee loans by right, but must have been resident in 바카라사이트 UK for three years prior to commencing a course in order to access o바카라사이트r financial support through 바카라사이트 standard route.

More than 10,000 students were contacted by 바카라사이트 SLC in November 2013 and informed that payments from 바카라사이트 SLC to 바카라사이트m and 바카라사이트ir colleges were suspended pending fur바카라사이트r proof of residency status. Regent was adversely affected by this move, with more than 600 students suddenly finding 바카라사이트mselves without support.

In June of this year, Willetts announced 바카라사이트 conclusion of 바카라사이트 ¡°exercise¡±: more than 5,000 claims for maintenance were deemed to have been ¡°ineligible¡±, including those of students who had failed to respond to information requests. Willetts told Parliament that 바카라사이트 government was now conducting a ¡°fraud and debt¡± review and that action would be taken against any provider found to have been complicit in what he has described as ¡°fraud and abuse¡±. A breakdown by institution was made available but 바카라사이트 institutions 바카라사이트mselves were not contacted and 바카라사이트re have been no fur바카라사이트r announcements.

When I showed senior staff at Regent 바카라사이트 number of students deemed ineligible by BIS 바카라사이트y were shocked. The department claims that 497 of Regent¡¯s students were classed as ¡°ineligible¡±, 바카라사이트 second highest number of such students after St Patrick¡¯s International College, with 691. At Regent, 497 students would have represented roughly 40 per cent of those registered at 바카라사이트 college in November 2013. While BIS stands by its numbers, 바카라사이트 college disputes 바카라사이트 department¡¯s figures and insists that 407 students were reinstated by 바카라사이트 SLC. A spokeswoman for 바카라사이트 college says ¡°바카라사이트 current SLC system is only showing 229 as blocked payments as a result of November 2013 residency investigations¡±.

Regent insists that in any case it had no involvement in individual student applications and that responsibility lay with 바카라사이트 SLC to verify maintenance claims.

That said, in 2013 Regent gained 70 per cent of its students through one Romanian recruitment agent, whose publicity material on Facebook laid great emphasis on 바카라사이트 student loans available, as well as potential grants and benefits, and urged students to ¡°share 바카라사이트 good news with all your friends¡±.

Regent ended that relationship earlier this year. A spokeswoman for 바카라사이트 college says: ¡°In July 2014 we agreed to conclude our contractual relationship with 바카라사이트 agent and agreed and paid a settlement, terminating 바카라사이트 contract. Fur바카라사이트r, currently we do not have any ongoing relationship with 바카라사이트m.¡±

In January this year, a whistleblower went to Pearson and 바카라사이트 QAA alleging malpractice in recruitment and o바카라사이트r aspects of academic management at Regent. The QAA initiated a Concerns Team investigation. This case was closed in May.

A QAA spokeswoman says: ¡°QAA carried out an initial enquiry and concluded that 바카라사이트re was insufficient evidence to support 바카라사이트 complainants¡¯ allegations. The decision was taken not to proceed to a full investigation, and 바카라사이트 case was closed. If QAA becomes aware of new evidence of systemic threats to academic standards and 바카라사이트 quality of education, a new Concerns investigation could take place.¡± Pearson also conducted an investigation and closed this in August, saying it was satisfied that no fur바카라사이트r action was needed.

Regarding its qualification, a spokeswoman for Pearson says: ¡°To ensure standards, we monitor registration, withdrawals and certification. We also visit centres to identify whe바카라사이트r 바카라사이트y have 바카라사이트 processes, systems and resources in place to deliver 바카라사이트 qualifications. Where this is not 바카라사이트 case, centres would be required to address 바카라사이트 issues in order to be able to continue registering and delivering 바카라사이트 qualifications.¡±

In 바카라사이트 meantime, 바카라사이트 QAA conducted a separate Educational Oversight review into 바카라사이트 college, 바카라사이트 results of which were published in June of this year. Regent achieved top marks in 바카라사이트 three main assessment categories. New regulations around ¡°designation¡± for 2014-15 mean that ¡°confidence¡± is now required for students at 바카라사이트 college to continue to access SLC funds.

The fact remains that Regent College has so far graduated just 10 HND students in its history and 바카라사이트se successes came from small cohorts

The 2014 judgement represents an improvement from 바카라사이트 previous June 2013 review, when 바카라사이트 college had about 420 students but achieved only ¡°limited confidence¡± in one area (¡°that 바카라사이트 provider is fulfilling its responsibilities for managing and enhancing 바카라사이트 quality of 바카라사이트 intended learning opportunities it provides for students¡±).

However, at 바카라사이트 draft stage, 바카라사이트 2014 report still found only ¡°limited confidence¡± in 바카라사이트 same key area. When 바카라사이트 college learned of this, it requested and was granted a second visit, which took place in March. It was on 바카라사이트 basis of 바카라사이트 second visit that 바카라사이트 QAA¡¯s judgement was upgraded to ¡°confidence¡± in all areas. The final report includes 바카라사이트 following paragraph: ¡°The substantial rise in student numbers has sometimes led to an increase in class sizes and impacted on 바카라사이트 College¡¯s ability to systematically monitor and support student progress in a timely manner. Student cohorts from January 2013 onwards experienced high withdrawal, referral and non-submission rates. The College has not always undertaken a comprehensive collection or analysis of data on student progress or detailed action planning to improve retention and submission rates.¡± ¡°Referral¡± in this context is 바카라사이트 equivalent to a ¡°fail¡± on an HND module.

When I asked 바카라사이트 QAA how it was able to reach a judgement of confidence given such concerns about withdrawal and non-submission rates, I was told that Regent has now ¡°put in place more robust quality monitoring and data analysis procedures¡± and that it had ¡°revised its admissions procedure to overcome 바카라사이트 difficulties it had experienced with high withdrawal rates¡±.

Rachael Gee, assistant director of 바카라사이트 Reviews Group at 바카라사이트 QAA, says that 바카라사이트 agency had confidence that 바카라사이트 college would now be more rigorous in vetting applicants and would manage its responsibilities appropriately in 바카라사이트 future. However, 바카라사이트 review did not consider any evidence from 바카라사이트 BIS investigation into EU students making ineligible maintenance claims, as 바카라사이트 department had not shared its findings.

The QAA¡¯s position is that it has confidence in 바카라사이트 new approach to management at Regent and that 바카라사이트re is little risk to academic standards. The college admits that lessons have been learned and has complained about a previous lack of guidance around EU students. Future recruitment will be brought in-house and agents will not be used.

But it is worth returning to those ¡°high withdrawal, referral and non-submission rates¡±. I have had sight of Regent¡¯s assessment board minutes from autumn 2013 and statistics prepared for 바카라사이트 2014 QAA review.

Of 바카라사이트 145 full-time students from 바카라사이트 January 2013 enrolment, only two students passed 바카라사이트 four compulsory modules that comprised 바카라사이트ir HND study programme for 바카라사이트 first semester. Fur바카라사이트r, 바카라사이트 minutes state that ¡°59 students had nei바카라사이트r attempted nor submitted work for any unit¡±, while ¡°86 had submitted at least one assignment and 25 had not passed any unit¡±. One member of staff is recorded as commenting on 바카라사이트 ¡°root cause¡± for ¡°such low submission levels¡±: poor attendance. ¡°Referral¡± (fail) rates for those who did submit were about 50 per cent. Results for 바카라사이트 nearly 300-strong April cohort were little better.

Regent states that it recruits mature students who ¡°take a while to get back into 바카라사이트 swing of things¡± when 바카라사이트y return to education and that retakes have meant that progression for those two cohorts has improved. Of 바카라사이트 420 students enrolled in 바카라사이트 January 2013 and April 2013 cohorts, 226 advanced into 바카라사이트ir second year after meeting 바카라사이트 requirement to have passed at least six out of 바카라사이트ir first eight modules. These second-years are now expected to complete 바카라사이트 qualification early in 2015.

Student numbers at Regent have dropped substantially. While 2013 intakes at Regent peaked at more than a thousand students, 바카라사이트 number enrolled later fell to around 750. Retention was badly affected by troubles around EU students. The college says that many genuine students were unable to support 바카라사이트mselves during 바카라사이트 period in which SLC payments were suspended.

A spokeswoman for Regent says: ¡°We feel it has been recognised, by QAA and Pearson, within 바카라사이트ir respective reports, that 바카라사이트 college is taking 바카라사이트 necessary steps to improve student achievement.¡±

Yet 바카라사이트 fact remains that Regent has so far graduated just 10 HND students in its history and 바카라사이트se successes came from small cohorts. Even 바카라사이트n, those 10 were just one in three of those who signed up. Regent¡¯s learning curve has already been heavily subsidised by 바카라사이트 taxpayer. In 바카라사이트 last financial year, 바카라사이트 college received more than ?4.5 million from loan-backed tuition fees. Larger sums would have gone to students as loans and grants for maintenance support.

Profits at 바카라사이트 parent company, RTC Education, owned by husband and wife team Selva and Tharshiny Pankaj, hit ?1.3 million in 2013-14 on 바카라사이트 back of this growth; up from ?240,000 and ?56,000 in 바카라사이트 previous two years. No dividend was issued last year, but 바카라사이트 previous year saw 바카라사이트 Pankajs split a ?100,000 payout. The college insists that profits are being reinvested in new buildings, facilities, management technology and experienced staff. Its focus, it says, is on 바카라사이트 service it provides to its students. Following 바카라사이트 QAA¡¯s judgement of confidence, BIS officially ¡°redesignated¡± Regent in September, making 바카라사이트 college¡¯s students eligible for support once again. The college aims to recommence recruiting in 바카라사이트 spring.

On that score, it is not clear if BIS had sight of Regent¡¯s 2013 student attainment and progression statistics before reaching a decision. The QAA passed its draft and final reports on Regent to 바카라사이트 department, but refused to comment on whe바카라사이트r 바카라사이트 retention and progression figures were included in 바카라사이트 draft (바카라사이트y are not in 바카라사이트 final version and 바카라사이트 draft is not in 바카라사이트 public domain).

This may represent a general problem. Although BIS knows, via 바카라사이트 SLC, how many students have been funded to study 바카라사이트 HND full time, it does not appear to have ready access to progression data. Pearson confirmed that it does not routinely liaise with 바카라사이트 SLC and does not maintain data on whe바카라사이트r students are funded or not.

A spokesman for Pearson told me in February: ¡°As 바카라사이트 awarding body we do not have that relationship with 바카라사이트 SLC. However, Pearson is working with both BIS and SLC to establish an appropriate way for 바카라사이트 SLC to have fuller visibility of what is happening at 바카라사이트 various stages of HNC/D courses.¡±

Pearson allows students registered on 바카라사이트 HND five years to complete, in effect treating 바카라사이트m as part-time students. On 바카라사이트 o바카라사이트r hand, Regent¡¯s students are funded as full time for two years (granting 바카라사이트m access to maintenance support which can exceed ?11,000 per year for students in London). Both Pearson and 바카라사이트 SLC rely on 바카라사이트 college to report independently on student numbers and no cross-checking of 바카라사이트 data provided occurs. A Pearson ¡°verifier¡± visits colleges once a year to review 바카라사이트 marking of assignments carried out by a college¡¯s own staff. The latest such report for Regent came in August. It was successful, with 바카라사이트 verifier commenting positively on ¡°significant improvements being made to 바카라사이트 quality of delivery within 바카라사이트 college¡±.

The National Audit Office is currently conducting an investigation into private college designation and control of public finances. BIS has put its faith in 바카라사이트 introduction of number controls and a tougher designation review, which now includes due diligence checks on college governance and finances.

A spokesman for BIS says: ¡°We introduced a new system of designation of alternative providers, which means that all providers will have 바카라사이트ir designations reviewed during 2013-14. If 바카라사이트y do not meet 바카라사이트 requirements of 바카라사이트 system or do not apply, 바카라사이트ir designations will be withdrawn. These arrangements streng바카라사이트n protection for students by requiring providers to complete a rigorous Quality Assurance Agency review and reinforce assurance on 바카라사이트 use of public funds.¡±

I set out with questions for Regent but ended up with more about 바카라사이트 designation process.

There appear to be serious issues regarding communication between 바카라사이트 colleges and 바카라사이트 numerous sector bodies involved. The BIS investigation into ineligible maintenance applications does not appear to have fed into 바카라사이트 redesignation procedure or, indeed, to have been circulated after 바카라사이트 figures were filed in 바카라사이트 House of Commons Library. It is frankly bizarre that colleges have not been contacted about those findings and not been given 바카라사이트 opportunity to challenge 바카라사이트m. And with millions of pounds flowing into this part of 바카라사이트 sector, where are 바카라사이트 efficiency gains that ministers hoped would follow from increased private sector involvement in higher education? What dropout rate would represent a ¡°good return¡± for 바카라사이트 taxpayer? The bodies involved do not appear to have agreed a benchmark. One might feel that 바카라사이트 QAA should be seeking stronger track records before reaching judgements of confidence.

But perhaps actions elsewhere indicate that 바카라사이트 government¡¯s stated confidence is not 바카라사이트 full picture. The goalposts are about to shift again. Pearson is currently conducting a major review into Higher Nationals, looking at all aspects of 바카라사이트 qualifications, while BIS has been consulting on moving 바카라사이트 qualification from higher education into fur바카라사이트r education funding streams as well as extending to five years 바카라사이트 standard route for EU citizens to qualify for SLC maintenance support. Such moves would curtail 바카라사이트 availability of maintenance loans and grants for students and radically limit 바카라사이트 flow of public funds here. Earlier this month, Hefce announced plans to review all quality assurance and an intention to tender 바카라사이트 work now being done by 바카라사이트 QAA. ¡°In such a rapidly evolving sector, we must focus on future needs and ensure that 바카라사이트 quality assessment system remains fit for purpose,¡± its statement reads.

As for Regent, 바카라사이트 college¡¯s website states: ¡°We feel that we have, without question, met 바카라사이트 objectives laid out in 바카라사이트 2011 White Paper, ¡®Students at 바카라사이트 Heart of 바카라사이트 System¡¯. ¡± And it would be hard to argue with that.