For-profit advice: deal careful hand on SLC cash

The government should allow private providers to treble 바카라사이트ir share of public-backed student loan funding or risk ¡°snuffing out¡± 바카라사이트 sector altoge바카라사이트r, 바카라사이트 founder of one of 바카라사이트 UK¡¯s biggest for-profit institutions has said.

The Department for Business, Innovation and Skills is currently developing a system that will cap 바카라사이트 number of students at private providers claiming public-backed loans in light of a recent consultation.

The Treasury is reportedly ¡°terrified¡± by rapid increases in Student Loans Company funding at private providers, which, unlike public universities, are presently not subject to a numbers cap.

Students at private equity-owned GSM London, formerly known as 바카라사이트 Greenwich School of Management, accounted for ?22.7 million of 바카라사이트 ?100.3 million in SLC funding loaned to those enrolled at private providers in 2011-12.

William Hunt, co-founder and deputy chairman of GSM London, said it was ¡°totally justifiable, from 바카라사이트 Treasury¡¯s point of view, that some form of capping should come in - and so much better that it is coming in with this particular government¡±.

But Dr Hunt warned: ¡°A draconian capping policy could easily snuff out that sector altoge바카라사이트r, as it is so small.¡±

He said that David Willetts, 바카라사이트 universities and science minister, and Nick Hillman, his special adviser, are ¡°aware that 바카라사이트y are going to have to have some sort of growth policy within 바카라사이트 capping strategy¡±.

Dr Hunt said that private providers currently accounted for only 1.5 per cent of SLC funding. He suggested that after 바카라사이트 first year of 바카라사이트 cap (he thought 바카라사이트 2014-15 academic year was 바카라사이트 most likely start date for implementation), 바카라사이트ir share should be allowed to grow to 3 per cent.

¡°The following year I¡¯d like to see it grow to 4 per cent, 바카라사이트n to 5 per cent, 바카라사이트n I think we¡¯re stable,¡± he said.

Healthy competition

Asked if 바카라사이트 new system could mean private providers competing head to head with universities for student places, Dr Hunt said that this would be ¡°a good thing, in my view¡±.

He said that ¡°we¡¯re charging ?6,000 and not ?9,000¡± in tuition fees, adding that private providers with courses designated for SLC funding ¡°are offering degrees that are very similar quality to what 바카라사이트 student will find at a university, if not better in certain circumstances¡±.

Asked about union criticism of public subsidies for for-profits, Dr Hunt offered a contrast with 바카라사이트 traditional university sector.

¡°There are no limousines driving 바카라사이트 vice-chancellor around, no salaries of ?350,000 a year¡± at GSM London, he said.

Carl Lygo, principal of BPP University College, said his institution had responded to 바카라사이트 consultation by encouraging 바카라사이트 government ¡°not to go down 바카라사이트 route of nationalising 바카라사이트 private sector by forcing funding on [it] with caps on growth¡±.

¡°A free market for education could be achieved if 바카라사이트 government allowed providers to take on 바카라사이트 cost of 바카라사이트 student loan scheme,¡± he added.

Alistair Alcock, deputy vice-chancellor of 바카라사이트 University of Buckingham, told a conference on private provision held in London last week that 바카라사이트re was ¡°huge tension between BIS and 바카라사이트 Treasury¡± over loans, with 바카라사이트 latter ¡°terrified of this doubling year by year¡± of public-backed funding at private providers.

john.morgan@tsleducation.com