For-profit education
Private, profit-seeking educational institutions worldwide.
For-profit education refers to educational institutions operated by private, profit-seeking businesses. It is common in many parts of the world, constituting more than 70% of the higher education sector in several Asian countries.
Quick Facts
- Field
- Education
- Known for
- Institutions operated for profit
Facts from the source article.
Australia
In 2011, Australia had over 170 for-profit higher education institutions, enrolling 6% of the total student population. Their qualifications are legally equivalent to those from public universities, though external audits have raised concerns about quality and standards. For-profit colleges lag public universities in representing Indigenous students, those from low socio-economic backgrounds, and non-English speaking students. However, they provide a second chance for many otherwise excluded students. Partnerships between for-profit pathway colleges and public universities have proven effective in recruiting overseas students; 70% of pathway college students are foreign, and they constitute 45% of foreign students recruited by partner universities.
United Kingdom
The UK does not permit for-profit schools at the primary and secondary level, but for-profit institutions exist in higher education. In 2013, then education secretary Michael Gove reportedly drew up plans to allow free schools and academies to become for-profit, and in 2014 his successor Nicky Morgan refused to rule out for-profit schools. However, the Conservative manifesto for the 2015 General Election committed the party against introducing for-profit schools, and after the Conservative victory, Morgan ruled out any place for them. In higher education, a study identified 674 privately funded institutions, with the majority believed to be for-profit based on survey returns. Three for-profit universities—the University of Law, BPP University, and Arden University—hold degree-awarding powers.
United States
For-profit schools in the United States come in two main types. The first is post-secondary institutions that charge students fees and operate as businesses. The second, less common type, is K–12 private schools that also function as businesses. For-profit influence also exists in many public schools through education management organizations, or EMOs, which manage primary and secondary schools. These organizations partner with school districts or charter schools using public money. They typically handle back-office tasks, but may also provide teacher training, facility support, and other management services. During the 2018–19 school year, about 10% of charter schools worked with a for-profit EMO, while around 30% worked with a non-profit charter management organization. Supporters claim the profit motive boosts efficiency, but the model has sparked controversy and criticism.
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