What's the Difference Between Public & Private, Nonprofit Schools?

You've decided to attend classes and pursue your degree, but you're having a hard time figuring out where to do this. There are a lot of options, and some of them may be confusing. What's the difference between for-profit and nonprofit schools? What does a private, nonprofit school actually mean -- and why does it seem to cost so much more?

Here are the details that can help you decide what option is best for you. 

For-Profit Colleges & Universities

One difference between nonprofit and for-profit schools is the classes they offer and what they teach. For-profit schools, for example, usually offer courses focused on professional skills or technical training. Common programs offered include culinary, art and design.

For-profit schools are run like a business, so they have to make a profit. They are held responsible by shareholders and boards and while they are usually less selective in admissions, their student loans are usually offered at a higher interest rate.

Over the past few years, there has been some reform in the promotion of student success and the job placement rate for graduates from for-profit institutions. Another benefit of a for-profit college is the flexibility to complete classes as you are able. With the skills learned from these career-based courses, graduates may find it easier to start their careers.

Nonprofit Schools

When describing a nonprofit school, you may get a sense that they have a lot of the same characteristics as the traditional colleges you learned about when you were younger. They offer a wide variety of programs and are funded by the government, tuition payments and donations.

Nonprofit schools use their income for operational costs, including curriculum, paying professors and making sure the campus is functional and safe. Both online and in-person colleges can be nonprofits.

Just as with for-profit schools, nonprofits have benefits as well -- and one of them is their reputation. The network of alumni and community members who support the school can help graduates seeking employment.

What about Public vs Private?

There's another divide when it comes to colleges: whether the nonprofit school is public or private. This difference is easier to understand.

Private nonprofit schools are funded by endowments, donations and tuition. They are usually smaller, are harder to get into,  and cost more. But they also offer smaller class sizes, more individual attention for students and more robust student resources.

Public nonprofit schools are federally funded, which is how they are able to charge less in tuition and fees. There's often a difference between in-state and out-of-state tuition, but overall those are generally less than a private nonprofit. With higher admittance rates the class sizes are larger, but there may be more variety in classes, programs and bigger sense of community on campus.

Which One is Best for You?

After all of that information, you may still not be sure which kind of academic institution is for you. There are a few other things to consider, like tuition and graduation rates. You can compare those from the website of each school, taking into account your Post-9/11 GI Bill® or other benefits you may receive.

Take the time to determine the best option for you, keeping in mind your goals and career plans.

Ready to learn more about navigating the higher education system as a veteran? Start here.