On 26 July, BPP, a private college providing mainly legal and business courses, was given University College status.
(BPP's press release) This makes it only the second private University in the UK and the first since 1976. Much was made in the press about the Unions response to this news (particularly concerns overs standards) and the goivernment's stance on private sector involvement in HE - it wants more according to David Willetts. BPP and Buckingham (that 1976 university - Cabinet Minister for Education at the time? One Margaret Hilda Thatcher) won't be Government funded and therefore not answerable to HEFCE.
In a lot of ways, BPP is an answer to the Government's woes over HE. Any increase in UK student numbers means the Treasury having to reach into their pockets to give the students a loan for fees. Any increase in fees, although meaning they can plausibly be justified in cutting central funding, means having to reach deeper. Creating a private university means they don't have to pay out a bean. Of all the suggestions the Browne Report may contain, private universities would be one of the cheapest to implement.
The Unions' worries seem to be two-fold: that unlike Buckingham, which is a non profit making business, BPP will look to profit margins and shareholders ahead of all else and that without HEFCE enforcing audits and collecting data, standards will be allowed to slip, bringing the reputation of UK HE intitutions into disrepute.
(UCU article on BPP)
The Union concerns have some merit, but if BPP is the thin edge of the wedge, Buckingham shows the wedge to be a bloody long one. BBP offers mainly professional qualifications, for which people expect to pay a fair fee in return for the directly applicable letters after their name and increased salary it means. Branching into degrees has so far been limited professional areas, where the degree has a similar effect. Whether this heralds the arrival of new private universities depends on the level of fees the market will take and the amount the universities will need to charge to keep afloat.
We might be entering into a new era if the fee cap is hiked up or removed entirely. If the proportion of money recieved directly from the Treasury shrinks to negligable, how soon before someone works out it's cheaper to charge higher fees and go private and not have to complete all those pesky returns to HEFCE or risk fines on recruitment? Those at Cranfield may be experiencing a squeeky bum moment as it might well be considering its potential standing in a private market, given its excellent reputation.
What does all this mean for the lowly administrator? Well, I'm sure we'd all like to throw a party at never having to see the Auditors again, but surely if that wedge starts to widen, some form of independent accreditation body can't be too far away to keep critics at bay? Cue a few years of establishment of rules, measures, revisions and chaos in terms of what actual data is needed.
But will it all happen? We await Browne, obviously, to see what will happen with fees, but we also wait to see what the banks might offer in terms of student loans. The one consequence of going private is that the Student Loans Company is out of the equation, and how much are banks going to be willing to loan, and indeed, charge for that BSc in Aquatic Exploration with Organic Crafts?