claire field, clair field and associates - transformation in the private higher education sector
DESCRIPTION
Claire Field delivered the presentation at the Higher Education Reform Summit. Presented by Informa and the Financial Review. The Higher Education Reform Summit examined issues, challenges and opportunities posed by the deregulation of Higher Education. For more information on the event please visit: http://bit.ly/1v7HwNmTRANSCRIPT
Transformation in the private higher education sector
Claire Field
Presentation to Higher Education Reform Summit
Overview
History
Provider characteristics
Student characteristics
Changes within the sector
Higher education funding reforms
Quick History Recap
1987 – Dawkins’ Green Paper - 4 private providers:
3 non-government teachers’ colleges (Avondale, McAuley, Signadou)
Marcus Oldham Farm Management College
1987 – Bond University granted university status by Qld government
1994 – Navitas & ECU partnership for international students
Late 1990s/early 2000s – VET Training Packages (78 private providers in 1999)
2005 - FEE-HELP introduced for all full-fee paying higher education students
7 private universities (ACU, Bond, Notre Dame, MCD University of Divinity, Carnegie Mellon, UCL, Torrens)
120 non-university higher education providers (incl 11 TAFEs)
36 publicly owned universities, plus Batchelor Institute
Overseas universities not TEQSA registered (Boston, NYU)
Non-university HE educated 52,000 students in 2012
Higher education sector today
Source: TEQSA, 2014, Statistics Report on TEQSA Registered Higher Education Providers
Provider characteristics
4 different private Higher Ed provider types:1. Pathways programs
2. University equivalent offerings
3. Niche courses
4. Theological
Private Higher Ed grew 23% in the 4 years to end of 2012 despite uncapping of funding for university places (ACER, 2013)
Almost ½ of all students are international
Enrolments by field of study
Source: TEQSA, 2014, Statistics Report on TEQSA Registered Higher Education Providers
Higher education in private providers and TAFEs, 2012
Enrolments by AQF level
AQF level Unis % Non-unis % Non-unis as a %
of total
AQF 5 0.5% 22.0% 72.5%
AQF 6 1.0% 4.4% 21.8%
AQF 7 75.8% 49.2% 3.9%
AQF 8 5.2% 14.8% 15.3%
AQF 9 12.9% 8.0% 3.7%
AQF 10 4.6% 0.2% 0.3%
Other 2.3% 1.4% 3.5%
Total 100% 100% 5.9%
Source: TEQSA, 2014, Statistics Report on TEQSA Registered Higher Education Providers
Provider types
Students
17% of students studying at private providers from the lowest SES quartile, compared to 18% at university.
Private students more likely to:
be older than those studying at university,
gain entry on the basis of an alternate admission mechanism, outside the ATAR
Admissions processes that include face-to-face interviews, portfolios, and letters of recommendation.
Source: ACER, 2013, Higher Education enrolment growth, change and the role of Private HEPs
Basis of admissions
Source: ACER, 2013, Higher Education enrolment growth, change and the role of Private HEPs
Reasons to study privately
Students cite the following reasons they chose a private provider: leading industry practitioners vocational nature of courses/work experience small class sizes with an average of 20 students opportunity to interact with teachers on regular basis learning environments and teaching facilities second chance for many students stepping stone or pathway into university; personalised services flexibility of the courses
Source: Shah & Nair, 2011, Engaging with Quality: Quality Assurance and Capacity Building in Private Higher Education
Changes in the sector
Consolidation among local ASX listedproviders
2005 – Navitas (as IBT) first to list on ASX*
2010 – Academies Australasia purchases a private HE provider
2010 – RedHill launches (chaired by Bruce Baird AM)
2014 – Vocation purchases two private HE providers
Overseas providers buying a stake
Kaplan – first purchase in Australia in 2006
Laureate (Torrens Uni, Think Education, Blue Mountains International Hotel School)
Open Colleges (70% stake owned by Apollo Education Group – Phoenix Uni)
Changes in the sector cont’d
Overseas private equity ownership
Study Group
Growing number of VET providers with private equity backing
Growing no. of private VET providers applying for HE status
Increased number and variety of partnerships between universities and private providers
More consolidation in the sector irrespective of reform progress
Impact if reforms are passed
Strong growth in private HE enrolments
New enrolments coming from
new students entering HE, and
non-elite unis losing some market share to privates
Some unis likely to expand diploma enrolments (impact on TAFEs & some private VET providers)
Growth in both ‘uni-comparable’ and 'niche' courses in private HE & increased course differentiation in unis
Significant M&A activity in private sector in first 2 years
Impact if reforms are delayed
Slower rate of growth in private HE enrolments
Continuing strength in numbers in:
Pathways courses (depending on funding arrangements)
Niche courses
Theology courses
‘University-comparable’ courses in private HE will need to continue to offer distinct differences
Higher reliance on international student growth
Lower rate of M&A activity
How to respond?
Do not dismiss large private providers & expect more of them to appear
Think about why students choose private providers and where you need to make changes to stop the drift. They offer
leading industry practitioners;
work experience embedded into the curriculum;
small class sizes & opportunity to interact with teachers;
specialist learning environments and teaching facilities;
personalised services
the flexibility to undertake the courses in different ways