Swindon's New College has set up a groundbreaking partnership with a private university to offer undergraduate degrees.
In the first public-private link-up of its kind, law and business degree courses will be operated by BPP University College, which last year became the first private university created in the UK for more than three decades.
The partnership breaks new ground in the education sector and comes at a time when ministers are keen to encourage further education institutions like New College to develop links with private providers, effectively setting themselves up in competition to universities.
Speaking about the New College tie-up, BPP's chief executive Carl Lygo told the BBC that higher education sector is "changing dramatically".
"During the past year we have been approached by a staggering number of publicly-funded providers who are actively pursuing ways in which to continue to provide quality education and training, or, in many cases, to seek help in order to survive," he said.
This landmark link with New College is likely to be followed by similar projects around the country.
Ministers have warned universities that they could be undercut by new providers offering courses at a lower cost – including further education colleges.
New College and BPP's business and law degree courses will cost £3,000 a year under the current fees system – slightly less than most universities.
New College principal Graham Taylor said the partnership with BPP will benefit people who want to study locally, allowing the college to "offer undergraduate programmes at affordable fees in our own classrooms".
