Shareholders of FTSE-listed BPP Holdings plc were celebrating today when shares rose 13% overnight following the announcement that its subsidiary the BPP College of Professional Studies had been given the go-ahead to offer its own degrees, writes Debbie Andalo.
The decision by the privy council means for the first time the UK's higher education sector has opened its door to a private company driven by its profit margins.
The college admits that it will be looking to make money for its shareholders, who will want to see a return on their investment.
That may be unpalatable to those who believe access to education should not be determined by potential profit margins and how much institutions can get away with charging students.
But what is the difference between what BPP is doing and the desire by universities to generate more income? Some are already champing at the bit to increase student tuition fees when the £3,000 annual cap is reviewed in 2009. And university lecturers will no doubt be pushing to see a share of any fee increase reflected in their pay packets.
BPP College is confident that bringing a for-profit arm into the higher education sector will drive up standards.
It argues it will increase competition for students, especially those from the lucrative overseas market, between itself and the public sector universities as well as other private sector colleges which are likely to enter the undergraduate and postgraduate market.
So, is this privy council decision a way of extending student choice or a step too far towards commercialising higher education?
