For-Profit Schools Vs. Non-Profit Schools
By Marie Anderson
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Nonprofit schools operate for the purpose of educating students. They may be private or public elementary schools, secondary schools or two- or four-year colleges that offer degrees in a variety of areas. For-profit schools serve a dual purpose of providing a career-focused education to students and making money for investors. While there are some K-12 for-profit schools, for-profit colleges have particularly gained popularity in recent years. There are many differences to consider when deciding which type of school is best, such as academics, cost and the educational experience you are seeking.
Students seeking a traditional college experience usually prefer nonprofit schools because their campuses are like small communities. Many college campuses have dorms, libraries, health centers, sports facilities and other services for students to take advantage of. They also have extracurricular activities where students can interact. For-profit schools usually rent buildings for their classrooms, are much smaller and lack the community atmosphere. They may have several smaller locations, which is a convenience for students.
Public nonprofit schools are subsidized by taxpayers, but also receive funding through student tuition, fees and donations from alumni and the community. An important difference between funding at for-profit and nonprofit schools is what happens to the money they earn. At nonprofit schools and colleges, money is invested back into the students and school, while at for-profit colleges, which are businesses, the money goes to a group of investors.
Accreditation and Graduation Rates
Nonprofit universities are usually accredited by regional groups based the quality of the faculty and academics. For-profit schools are usually accredited by national groups that do not emphasize academics, but instead, base their decision on student attendance, graduation rates and job placement. Accreditation is important if students want to transfer credits to other schools or receive financial aid, and for employers to recognize the degree. The College Board shows that in 2002, 55 percent of students at public nonprofit schools earned a bachelor's degree within six years, compared to only 22 percent at for-profit schools.
According to "Forbes," nearly all students at for-profit colleges take out loans, and they are eight times more likely to incur over $20,000 in debt when compared to public community college students. Data from The College Board shows that from 2010 to 2011, the average price of a year at a public two-year college was about $2,700, compared to nearly $14,000 at a for-profit institution. The average price at a public nonprofit school was about half the cost, around $7,600.
The Denver Post: As For-profit Colleges Flourish, Focus Turns to Grads' Success and Debt
Forbes: Beware Of For-Profit Higher Education
The College Board: Trends in For-Profit Postsecondary Education -- Enrollment, Prices, Student Aid and Outcomes
Houston area native Marie Anderson began writing education articles in 2013. She holds a Bachelor of Science in exercise and sports science and a Master of Science in education administration. She has seven years of teaching and coaching experience within the Texas public school system.
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