The rise of private higher education in Australia: maintaining quality outcomes and future challenges

The last decade has heralded a boom in private higher education. In 2000, only 0.3% (2450) of total higher education enrolments in Australia was in private higher education across six institutions. By 2007, enrolments had increased to 5% (53060) of total higher education enrolments in Australia. The number of private higher education providers has also increased exponentially: from six in 2000 to approximately 150 in 2007 (DEEWR, 2008). Based on this trend it is predicted that by 2020 private higher education in Australia will contribute approximately thirty percent of total higher education enrolments in Australia. The catalyst for this growth is arguably the opportunity for individuals to enrol in a diverse array of specialist programs offered by niche providers, coupled with access to the higher education loan scheme (FEE-HELP). This increased choice and the promotion of a level playing field by Commonwealth policy will undoubtedly create significant competition between private providers, universities and Technical and Further Education (TAFE) colleges. The paper commences by exploring, in detail, the factors contributing to the burgeoning rise of private higher education in Australia. It will outline the distinguishing features of private higher education providers, highlighting the diverse student choice on offer. The quality experience provided by one private provider will be profiled, reporting on the student experience via the use of key performance indicators using a case study methodology. In conclusion the paper critiques some of the key challenges facing private higher education institutions in Australia and the implications for maintaining quality outcomes and academic standards.