For-profit colleges and universities represent the fastest-growing but also most controversial sector of private higher education in the United States. Universities like Phoenix, DeVry and Kaplan have helped turn the for-profit sector into a massive revenue generator and the engine for higher education growth. From 1998 to 2008, for-profit enrolment grew by 225%.
A decade after Monash University in Melbourne became the first foreign university to gain registration as a private higher education institution in South Africa, its ambitious goal of establishing a profitable campus in Johannesburg has still to be achieved. Meanwhile the university has changed its approach, switching focus from being 'for-profit' to 'public purpose'.
Last year, the Obama administration vowed to stop for-profit colleges from luring students with false promises. In an opening volley that shook the $30 billion industry, officials proposed new restrictions to cut off the huge flow of federal aid to unfit programs.
The only for-profit institution in Britain authorized to offer higher-education degrees is in talks with several public universities about managing the business side of their operations, according to the Guardian. The company, BPP, “has launched an aggressive expansion plan to jointly run at least 10 of its publicly funded counterparts,” the paper reports.