Senior academics in the UCU lecturers' union have said they fear expansion of for-profit universities could damage the reputation of higher education in the UK
Data released by the Department of Education today show that while the official loan-default rate for students of for-profit colleges who entered repayment in 2008 was 11.6 percent, the rate would be more than double that, or 25 percent, under a stricter measurement standard that begins to take effect next year.
About one-quarter of students who took out federal loans to attend for-profit colleges defaulted within three years of starting repayment, according to a new federal analysis.
But ultimately it is the huge private sector, which caters to about 80 percent of Korean students, where the pain is likely to be felt most—and the private providers are already under scrutiny. Some are exaggerating their number of students, covering up financial problems, and hiking student fees to unacceptable levels, says Ms. Yu. "Some are paying professors lower salaries than for primary schoolteachers."
The establishment of a new private liberal-arts college in London, which was announced to widespread media coverage on Sunday, appears to have already hit several significant hurdles. A.C. Grayling, a well-known philosopher and the driving force behind the New College of the Humanities, had said in an introduction to the institution posted on its Web site that its students would have access to many resources at the University of London, including its libraries. However, in a statement, the University of London said that there was “no formal agreement between the University of London and the NCH concerning academic matters” and that there was not yet any agreement “regarding access to the Senate House Libraries by NCH students.”
Despite the efforts of some of the world's largest foreign private universities to set up shop in Australia, none have yet succeeded in making a profit from selling higher education - or even attracting significant numbers of students.
According to the most recent report of Accredibase, the UK-based background screening company Verifile Limited, there was a staggering 48% increase in the number of known degree or diploma mills operating worldwide last year. It identified more than 2,500 bogus institutions across all regions, but primarily in North America and Europe.
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 trade group has filed suit in federal court to block a series of U.S. Department of Education rules that would increase regulatory scrutiny over segments of higher education.