American private university scandals must act as warning against more for-profit UK universities, says UCU

The letter highlights the publication of a new UCU report, Subprime Education? [102kb], which details numerous high-profile scandals in the for-profit sector in the United States, where it is easier for private companies to set up as higher education providers - largely because they can access government student funding.
 
Currently in the UK, for-profit companies cannot easily access public funding including the national subsidised student loan system, nor can they easily achieve degree-awarding powers or a university title.
 
However, recently London-based BPP College was granted University College status (becoming the first new private sector university college for 30 years) and it is now apparent that other private companies are lobbying to move into higher education. Mr Willetts has also signalled his interest in a recent speech.
 
UCU has continually warned that private companies have no tradition of academic freedom, are exempt from Freedom of Information legislation, and are not subjected to the same academic rigour or public scrutiny as UK universities. These concerns are now being illustrated in real terms by the scandals in America. In June, the US Department for Education proposed 14 new rules aimed at tackling abuses in for-profit education and the US Congress is now investigating for-profit colleges and universities.
 
In her letter to the minister [22kb], UCU general secretary Sally Hunt writes: 'As you are aware, both the US Congress and the Obama administration are currently discussing how to better regulate the for-profit sector in the wake of a series of high-profile public scandals involving companies like Kaplan and Apollo, which owns BPP University College, alleging malpractice in recruiting and the sale of poor products to lower income students.
 
'In the light of these developments in the USA, I thought we should lay out our concerns for you now, before the issue moves on much further. I would ask that no further moves are made by this government, either now or in the wake of the Browne review's report, to make it easier for the for-profit sector to access public funds or the brand reputation of UK higher education. Such moves would, we believe, create conditions very similar to those that have generated the current controversy in the United States.'