Introduction
Approximately 140 institutions offering higher education
are termed 'alternative providers'. These alternative providers
comprise a diverse range of organisations ranging from private
companies to charitable institutions. They do not receive government
grants directly but do access public funding through student loans
which are used to pay their fees. Following the announcement of
higher education reforms in 2011, and the associated increase
in tuition fee loans, there has been substantial and rapid growth
in the sector. 40% of the publicly funded students attending these
colleges are EU students, compared to 6% in the rest of the higher
education sector. Between 2010/11 and 2013/14, the number of students
claiming support for courses at alternative providers rose from
7,000 to 53,000. Over the same period, the total amount of public
money paid to students at alternative providers, through tuition
fee loans and maintenance loans and grants, has risen from around
£50 million to around £675 million. The Department has
overall responsibility for oversight of publicly-funded higher
education, including alternative providers with publicly-funded
students. The Student Loans Company is responsible for paying
out loans and grants to students.
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