According to Zoe Williams, the government’s misguided drive to marketize universities has made their current state entirely predictable. The author argues that the result has been an increase in fixed costs to pay for vast building programs and administrative overheads.
Universities reacted like lemmings, increasing the number of students to earn more profit when the government replaced the teaching grant plus fee of £6,000 with a student fee of £9,000. As a result, fixed costs have gone up, including large building projects and administrative overheads to deal with the increasing number of students and increased regulatory demands.
Classes have been packed, the academic staff-to-student ratio has barely shifted, and young academics are employed on insecure short-term contacts.
Students graduate with high debts and harsh repayment plans, which add to national debts. The universities’ primary focus is the academics and the students, but unfortunately, both groups are now worse than before. If a student fee had to be introduced, it should, at least, be on more favorable terms (zero interest), and the fee collected should be channeled towards improving services for the students.
When prospective students are making decisions about higher education, many do not realize the significant difference between for-profit and non-profit institutions. Understanding the difference is also critical in the decision-making process.
The government-funded non-profit universities, tuition fees, and endowment funds most direct their funds into educational programs and student life and development. Most public universities are always non-profit, but unfortunately, they are moving away from the norm and becoming more profit-oriented. Due to some government policies, some public universities have been more profit-centered, and profit-centered is worsening the academic programs and quality of education provided. Some private universities are also non-profit institutions that focus on facilitating an effective learning environment.
Private universities are mostly for-profit institutions, and much of their funding comes from private investors. To make a profit, private universities charge tuition and other fees for the day-to-day operation of the institution.
There are almost no differences between for-profit and non-profit universities. In most cases, the core mandate of public universities is not for profit. The general mandate and purpose are to further a social cause, which is quality education. The primary purpose of the non-profit is to provide excellent education.
Non-profit universities tend to have higher admission standards, but since some universities are focused on making more profits, they tend to lower their admission requirements to admit more students. Public universities focus more on high-quality content delivery, but in recent times, their focus has been shifted toward profit-making.
The reputation of universities is serious factor nowadays. A university reputation is determined by many reasons including financial transparency and funding education. A school reputation may also be affected by its graduates’ employability and income potentials.
