Employment and Skills

Private training providers will be in direct competition with universities for the first time.

Private training providers will be in direct competition with universities for the first time.

The Government announced in its response to the higher education White Paper, that private providers will be subject to the same controls on the number of students accessing public loans, and the same quality assurance regime, as the rest of the sector.

The number of students at alternative providers accessing taxpayer subsidised loans nearly doubled last year, from 4,300 in 2009-10 to 9.360 in the first six months of 2011-12.

The move has been welcomed by the sector as it will limit the uncapped growth of student loan money going to private providers, however concerns have been raised that many universities could lose out on students because they will be in direct competition with private providers.

Universities Minister David Willetts stated that private providers currently accounted “for less than 1 per cent” of student loans funding, “I don’t think existing providers will lose out”.

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