For Profit Vs. Non Profit Colleges: All You Need to Know

What’s the difference between for-profit vs non-profit colleges and which ones typically tend to cost more?

You’re in the process of applying for college, but you’re unsure whether or not to choose between a non-profit or a for-profit institution. What’s the difference between for-profit vs non-profit colleges? While both options can offer a solid education, it’s important to consider various factors before making your choice.

According to research, 65% of students graduated with a degree from a non-profit college, while only 28% did so at their for-profit counterparts. Let’s compare some of the differences between the two types of institutions.

Differences Between For-Profit and Non-Profit Colleges

Their Goals

While for-profit colleges have the goal in mind to help students achieve academic success, at the same time, they operate like any other business does — which means their ultimate goal is to be profitable. Therefore, if a program or course is causing the university to fall short financially, the class is at risk of being cut. Oftentimes, for-profit schools are subsidiaries of larger corporations and have stakeholders and board members that they report to.

On the other hand, non-profit colleges do not have single owners and are not answerable to shareholders. Their main goal is to help students reach their academic goals and earn a degree. When you typically think of university, these are likely the kinds of schools that come to mind. They work hard to serve the students over shareholders and provide an environment that is conducive to both learning and networking.

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2. The Environment

Since for-profit schools are focused on profit, some of them don’t offer a real school environment, but rather they may lease space in an office building. For the same reason, they usually don’t provide extracurricular activities or recreation centers because those are considered to be costs. However, they can sometimes be more flexible than their non-profit counterparts in terms of class times and schedules. But, if flexibility is important, non-profit online universities are the most flexible option as all you need is an internet connection to earn your degree!

Non-profit schools tend to place high emphasis on offering students an optimal environment to learn and connect with peers. Whether it’s a traditional on-campus college with plazas, cafes, and study halls or an online university with chat groups and networking opportunities, these institutions revolve around students’ lives. They often receive funding from the government for tuition fees and sometimes even assist with tuition from the help of donors and alumni. For this reason, non-profit schools are typically more affordable than their for-profit counterparts. For the most affordable kind of non-profit accredited college, explore the University of the People, a tuition-free online university with the mission to democratize and revolutionize education making it accessible for everyone anywhere in the world with an internet connection.

3. The Education

For the most part, for-profit institutions have a predestined curriculum that is decided by an academic committee. They tend to focus on job-specific education like medical billing, web design, and business administration. Additionally, the admissions process requires less than a non-profit college in that it’s usually just an application and fee payment.

As a more diverse educational system, non-profit schools allow for the professors to set their own courses and curriculum. They also offer more support to find a job like job fairs and career advisors, and typically, have better name recognition. It’s possible that some employers may think more highly of a graduate of a non-profit school because of the connections they make with the institution and the overall media coverage and educational design.

For this reason, non-profits also tend to have a more demanding admissions process by requiring entrance exams, applications, essays, and sometimes fees, although this process varies by institution. However, some colleges such as the University of the People, only requires that you pass an English exam, and have a high school diploma, to be accepted as a student.

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Making The Choice

Regardless of the type of college you choose that is right for you, the number one important factor is to ensure it is accredited. Accreditation is performed by a third-party that assesses the school is meeting certain academic requirements.

Another important thing to note, based on research by the National Bureau of Economic Research, is that students who attend for-profit education institutions are less likely to be employed – 71% of for-profit graduates were employed compared to 84% of four-year university graduates. They typically earn less than their peers who attended non-profit schools and also have higher levels of debt.

Additionally, most credits earned at for-profit schools don’t transfer to non-profit institutions, so if you are considering continuing your education, it’s important to ensure the undergraduate work you complete will be transferable. You can check this on your university of choice’s website or call their admissions offices to make sure.

Depending on your needs and the amount of time, money, and energy you have to devote to your education, you can assess which kind of institution better suits your goals.