For-Profit vs Non-Profit Colleges: What's the Difference

Going to college is indeed a dream of many students. However, the college you choose greatly impacts your learning experience and future earnings. There are typically two types of colleges in the U.S.: for-profit and non-profit. To help you pick the right one, this article gives you a detailed overview of for-profit vs non-profit colleges. Let's start!

What is a For-Profit College?

For-profit colleges are businesses that focus on generating a profit for their owners and shareholders. They aim to make money by offering multiple educational programs.

They often cost more than non-profit institutes, leaving many students in debt. Currently, there are around 3,200 for-profit institutions in the U.S.

Some popular names include the University of the Potomac, Washington, Sullivan University, Louisville, and others. These universities offer both graduate and undergraduate courses and undergo strict regulatory checks.

What is a Non-Profit College?

Non-profit colleges are more inclined to offer a great learning experience rather than making a profit. Even the revenue earned is invested back into the college to cover maintenance costs, salaries, and program expenses.

These colleges receive their funds from either state or federal sources. In for-profit vs non-profit colleges, the latter have high hiring standards that ensure a quality educational experience.

Statistics show that over 1,700 private, non-profit colleges and universitiesare in the U.S., enrolling over 5.2 million students in all 50 states. Popular names include Brown University, Duke University, and Northwestern University.

For-Profit Vs Non-Profit Colleges: Key Differences

Now that you are aware of the core concepts of for-profit vs non-profit colleges, let's look at some of their other differences:

Cost

• For-Profit:When it comes to cost, for-profit colleges tend to cost more. Statistics show that, as of 2024, the average tuition and fees at for-profit colleges were $15,868 annually. This is quite expensive, and rightly so, since the primary purpose of a for-profit college is to make a profit.
• Non-Profit:In for-profit vs non-profit colleges, the latter is relatively inexpensive. For instance, at public 2-year institutions or community colleges, in-district tuition and fees average $3,598 annually. Even the money earned from such institutions is invested back for growth and expenses.

Reputation

• For-profit: For-profit colleges in the U.S. have a reputation for charging high fees and providing quality education. The recruitment criteria in such institutions aren't often that strict, so students can easily get in. However, they have a low graduation rate. According to National Student Clearinghouse reports, only 47.6% of students finish in six years.
• Non-Profit:Public, non-profit colleges have earned a reputation for being affordable and providing top-notch education. They have very aggressive recruitment criteria and a good graduation rate of 68%.

Funding

• For-Profit:In for-profit vs for-profit colleges, the former is owned and funded by private companies and businesses. They get money from these investors and corporate bodies. The earned revenue is then spent on non-educational expenses and even given to investors.
• Non-Profit:Public, non-profit colleges get their funding from donations, tuition, grants, and state or federal funds. On the other hand, private non-profit colleges receive funds from private endowments and grants.

Admission Process

• For-Profit: The admission process for for-profit colleges is quite easy, as they often have a low barrier to entry. Students with satisfactory grades can get in. Other requirements, such as the application, test scores, and letters of recommendation, are the same as those of a non-profit institute.
• Non-profit:Non-profit institutes have high admission standards and tough competition. Students must submit their GPAs, test scores, essays, and other documents to be considered for the process.

Student debt and flexibility for classes are some of the things you should look out for before making any decisions.

FAQs

Are degrees from for-profit colleges respected by employer?

Yes, as long as the for-profit college you graduated from is accredited and reputable, the employer will respect and accept the degree.

Are for-profit colleges accredited?

Yes, most for-profit colleges are accredited, but not all of them are. Therefore, you must determine what regional and national accreditation your college has before enrolling.

How to check a college's status and reputation?

To check a college's status and reputation, visit the U.S. Department of Education's (USDE) College Search page. There, you'll find information about college accreditations, graduation rates, and other important information.

Conclusion

While choosing between for-profit vs non-profit colleges, pick the one that aligns with your career goals and budget. If you need suggestions, visit the National Louis Universitytoday and learn more about the courses offered and their purpose.