For-profit education providers have a chequered history of providing services abroad.
What happens to the children when a for-profit school fails?
For-profit schools operate in Sweden and a few of the states in the US. In May 2013, JB Education, whose schools educate over 10,000 pupils in Sweden, announced they were selling 19 of their high schools and closing down the remaining four because they weren’t making enough money from them. If other companies had not stepped in to take over, tens of thousands of children across the country would have been without an education.
Despite consuming billions every year in taxpayer-funded student loans for-profit universities have a terrible record of success. Only one in five students graduate, and students at for-profit colleges are much more likely to default on their loans. This is partly a result of their recruitment practices, with for-profit colleges often targeting people (including the homeless) who simply do not have the financial resources to pay loans back.
The US’ experience of allowing for-profit companies to run schools (often described as the CharterSchool movement) has also been mired in controversy.
Former Under-Secretary of Education, Diane Ravitch, who served under George Bush and Bill Clinton and was an initial supporter of Charter Schools, came up with the following summary:
“Charter schools are leading us to having a dual school system again. We’re going back to the period before Brown v. Board of Education, but the differentiation in the future will be based on class instead of race.
“Corporations aren’t going to put more money into the school, they’re only going to make money. This should make people in America angry. There ought to be a public uprising about this effort to destroy public education.”
The Swedish school system is often cited by Michael Gove as a model of best practice. However, like America its experiment with for-profit education has had disastrous consequences.
In May, JB Education, one of the largest for-profit education providers in the country went bust leaving the future of 10,000 pupils in limbo.
Ibrahim Baylan, the education spokesman for Sweden’s opposition Social Democratic party, says closures should come as a warning to the UK not to slavishly adopt the Swedish model, where private companies can set up profit-making free schools, paid for by the state but with little government oversight:
“Before you do something like this you have to really, really think about how you set up the system. The system here is not working as it’s supposed to work. Nobody could foresee that so many private equity companies would be in our school system as we have today.”