French university evolving with global investment

Beyond the Ivy Walls: How Private Higher Education is Quietly Revolutionizing Even France

"Discover the surprising surge of private and for-profit universities in France, challenging traditional norms and attracting global investment."


France, often viewed as the epitome of a strong, centralized state with significant control over its institutions, including higher education, is undergoing a subtle yet profound transformation. For many years it has had the historic "Continental Model" dominant in Europe and partly transplanted in Latin America and elsewhere. Contrary to popular belief, a significant non-state sector thrives within the French higher education landscape. Private higher education (PHE) accounts for 19 percent of all students. More notably, an increasing portion of this PHE is legally for-profit, attracting substantial international investment.

This evolution might seem like a departure from France's traditional state-dominated system. However, the existence of PHE, including the recent surge in for-profit institutions, aligns with the country's history of adapting state policies to accommodate diverse educational models. This article delves into the surprising numbers and characteristics of private higher education in France, examining the factors driving its growth and the implications for the future of education in the country.

We'll also explore the accommodating role of the French State, which, contrary to expectations, has historically supported the development of private institutions, even those operating on a for-profit basis. By understanding these dynamics, we gain insights into the evolving landscape of higher education in France and its potential impact on the global education market.

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From Athens to American Expansion

For-profit higher education is not a new phenomenon: one history traces the profit motive in higher education to the Golden Age of Greece, when anyone could open a private school and teach. Competitive for-profit education was particularly prominent in Athens, helping the city become a beacon of learning. In the United States, John Sperling’s decision to take the University of Phoenix public in 1994 demonstrated that higher education could operate as big business, prompting other for-profit schools to follow. By 2012, approximately 12 percent of American college students attended for-profit schools.

The Surprising Numbers Behind France's Private Education Boom

French university evolving with global investment

The statistics surrounding private higher education in France are indeed striking. The fact that 19 percent of the student population—approximately 436,000 out of 2.3 million enrollments in 2013—attends private institutions is noteworthy. This figure surpasses the average for Western Europe, where the PHE share is around 12 percent overall. What makes the French case even more remarkable is that the majority of French PHE institutions are "independent private," meaning they rely primarily on private funding, unlike their counterparts in neighboring countries that often depend on public funds.

Moreover, the growth trajectory of French PHE is impressive. The current 19 percent share significantly exceeds the 12 percent share recorded in 2000. During the same period, PHE share has largely remained stagnant in Western Europe. This rapid expansion has captured media attention, especially concerning the rise of for-profit institutions and the influx of international investors.

  • Global Players Entering the Scene: The French higher education landscape is witnessing the emergence of private equity firms and multinational corporations, leading to notable acquisitions and increased competition.
  • International "Groups" Emerge: Of the top five higher education "groups" in France, four are international, including Laureate International Universities and private equity firms such as Apax, Bregal, and Duke Street.
  • Increased Visibility: Financial and educational media outlets are fueling public fascination with these developments.
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The Rise of Dual-Sector Systems

Recent scholarship describes a broad transformation in higher education from predominantly public, near-monopoly national systems toward dual-sector systems that include private institutions. Research on private higher education also identifies France among the countries that legalized private higher education and explicitly differentiated nonprofit from for-profit universities. The same comparative discussion places France alongside Brazil, Japan, the United Kingdom, New Zealand, South Africa, and China in this development.

The Costs of Revenue-Driven Education

Critics argue that for-profit colleges direct earnings to shareholders rather than reinvesting surplus funds into academic programs, student services, and campus development. Reports also associate these institutions with high tuition, substantial student debt, and claims that job-placement rates or degree value may be exaggerated. Other commentary highlights very high failure and dropout rates and argues that for-profit universities do not necessarily provide greater value for students’ money.

While France's private higher education sector is expanding and attracting significant investment, it is essential to understand that defining the exact size of the for-profit component is challenging due to a lack of comprehensive government data. Despite this limitation, available data and trends suggest that the for-profit share of PHE is substantial and growing.

The Enduring Accommodation of Private Education in France

The growth of private and for-profit higher education in France is not happening in spite of state policy but rather in alignment with it. Since the end of the Napoleonic era, French state policy has generally accommodated private institutions, including those operating on a for-profit basis. While specific regulations have evolved over time, the overarching atmosphere has remained tolerant, fostering the legitimacy and growth of PHE. The French State has never banned or nationalized PHE, unlike some other European countries. It has generally allowed private institutions to operate and thrive. This enduring accommodation, initially focused on Catholic institutions, now extends to businesses operating in the education sector. While unions and public universities may occasionally lobby for stricter regulations on PHE, French policy remains largely supportive.

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Inequality and Public Education

Private universities’ impact on inequality has long been a concern in higher education research. A broader shift in student preferences toward private institutions could raise concerns about private universities exacerbating inequality. It could also potentially undermine public higher education, making the social consequences of private-sector expansion an important part of evaluating its real-world impact.

About this Article -

Written with AI assistance from published research, and reviewed by the Mystum team. See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.6017/ihe.2016.85.9249, Alternate LINK

Title: Private Higher Education: Even France, Even For-Profit

Subject: General Medicine

Journal: International Higher Education

Publisher: Boston College University Libraries

Authors: AuréLien Casta, Daniel Levy

Published: 2016-03-14

Everything You Need To Know

1

How significant is private higher education (PHE) in France compared to other European countries?

Private higher education in France is notably significant, accounting for 19 percent of all students. This surpasses the average for Western Europe, which is around 12 percent. Furthermore, a majority of French PHE institutions are 'independent private,' relying primarily on private funding. This contrasts with other European countries where private institutions often depend on public funds, marking France as an exception in its approach to funding these entities.

2

What factors contribute to the increasing presence of for-profit higher education institutions in France?

Several factors contribute to the rise of for-profit higher education in France. These include the entry of global players such as private equity firms and multinational corporations, leading to acquisitions and increased competition. The emergence of international 'groups,' like Laureate International Universities and firms such as Apax, Bregal, and Duke Street, has also increased the visibility and public fascination with these developments. Moreover, the French state's accommodating policies towards private institutions, including those operating on a for-profit basis, create a favorable environment for their growth.

3

How has the French State historically accommodated private higher education, and what are the implications of this approach?

Since the end of the Napoleonic era, French state policy has generally accommodated private institutions, including those operating on a for-profit basis. The French State has never banned or nationalized PHE. This enduring accommodation, initially focused on Catholic institutions, now extends to businesses operating in the education sector. While unions and public universities may occasionally lobby for stricter regulations on PHE, French policy remains largely supportive. This approach fosters the legitimacy and growth of PHE, allowing diverse educational models to thrive and potentially impacting the global education market.

4

What are some of the challenges in accurately assessing the size and impact of the for-profit higher education sector in France?

Defining the exact size of the for-profit component is challenging due to a lack of comprehensive government data. This limitation makes it difficult to precisely quantify the for-profit share of private higher education. Despite this, available data and trends suggest that the for-profit share of PHE is substantial and growing. Further research and data collection are needed to fully understand the scope and impact of for-profit institutions on the overall higher education landscape in France.

5

How does the growth of private and for-profit higher education in France challenge the traditional 'Continental Model' of higher education?

The growth of private and for-profit higher education in France challenges the traditional 'Continental Model' which emphasizes a strong, centralized state control over its institutions, including higher education. The increasing prevalence of private institutions, particularly those operating on a for-profit basis, introduces market-driven dynamics and international influences that diverge from the state-dominated system. This shift reflects France's adaptation to accommodate diverse educational models, potentially reshaping the landscape of higher education and its role in society.

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