For-Profit & Not-for-Profit Colleges and Universities

The major difference between For-Profits and Not-for-Profits is the school mission. For-Profit schools operate like other businesses. They are backed by investors, and they work towards a profit. Not-for-Profit schools may charge similar tuition prices, but all of the proceeds are put back into the schools.

For one example, NFPs usually incorporate sports programs into their schools. They pay for uniforms, coaches, athletic fields and sports scholarships. FPs, by contrast, are less likely to have significant campus facility and maintenance expenses (many of their school grounds and buildings are leased space).

Another example: NFPs spend money to support faculty pursuits. Instructors at NFP schools design their own courses and lesson plans. They also conduct their own research. FPs, instead, hire a small group of academics who build all the lesson plans. In this way, FP schools can pay lower salaries to the large group of instructors who actually teach these predesigned lessons.

While all of this information is good to know, many online students find that sports teams and faculty research don't really affect their decisions. Below are some bullets that compare the 2 types of schools in a more relevant way.

For Profit Schools are…

• Flexible and highly responsive to the needs of adult learners.
• More focused on job-specific curriculums.
• Interested in serving lower-income, minority, and first-generation college students along with "traditional" college students.
• Financial aid ready. 70% of full-time undergraduates attending for-profit institutions receive federal, state, or institutional grant aid.

Not-for-Profit Schools are…

• More likely to be regionally accredited. If you decide to switch schools later, this might make transferring your credits easier.
• Sometimes more equipped to provide student support/career services after enrollment.
• Generally thought to have "name recognition." They are sometimes considered more prestigious.
• Financial aid ready. 82% of full-time undergraduates enrolled at private, non-profit colleges and universities receive financial aid.