Online Schools: For-Profit Versus Nonprofit

To profit or not to profit, that is the question for many when it comes to selecting an online school.

In the world of higher education, there exists an academic tug-o-war between the ever-expanding for-profit institutions and the more traditional and sometimes more highly regarded nonprofit institutions.

But are these two types of colleges and universities really all that different?

In many ways, the answer is, "Yes." However, despite these differences, many contend that a student can receive a quality education from either type of institution - the differences often are more related to the institution's learning environment, overall cost, and the types of programs of study that are offered.

For-Profit Institutions - The Basics

During the 2004-05 academic year, private, for-profit schools made up 39 percent of all U.S. postsecondary institutions. Among the 3,458 nationally accredited institutions, 79 percent were for-profit, while only 2.6 percent of the 2,963 regionally accredited institutions were for-profit.

Of the 17.7 million college students enrolled at an institution in 2004, 7 percent attended a for-profit school. In addition, of all students enrolled at a for-profit institution that year, 48 percent were minority students.

On average, tuition at a for-profit college can be more expensive than the cost to attend many two-year and four-year public, nonprofit institutions, while it can be significantly less expensive that tuition at many private, nonprofit colleges and universities. Among full-time undergraduate students enrolled at a for-profit institution in 2004, 70 percent received federal, state or institutional grant aid.

For-Profit Institutions - Advantages

For-profit institutions of higher learning are considered by many to be more flexible than traditional nonprofit colleges and universities. Many for-profit schools have campuses throughout the country as well as numerous online programs, allowing students to more easily find programs that fit their needs.

Many proponents of for-profit institutions also contend that these schools are much more responsive to the needs of its students, especially their adult learners. Because such schools are for-profit, they must continually respond the changing needs of students in order to succeed in a free-enterprise system. In addition, this need to remain competitive can help drive new innovations and improvements at for-profit schools at a possibly faster rate than at nonprofit colleges and universities.

For many adult students, for-profit schools might be preferable because their curriculum often provides a greater focus on job-specific programs. In addition, for-profit institutions have demonstrated a greater likelihood to serve lower income, minority and first-generation college students.

Nonprofit Institutions - The Basics

Among all U.S. accredited postsecondary institutions, 61 percent were either private or public nonprofit schools in 2004. In addition, nonprofit institutions comprised 20.9 percent of all nationally accredited schools and 97.4 percent of regionally accredited schools.

During the 2004-05 academic year, 93.3 percent of degree-seeking college students were enrolled in a private or public nonprofit institution. Of these students, 33 percent were a minority.

Overall, private, nonprofit institutions can be the most expensive of all postsecondary colleges and universities, with 82 percent of students enrolled at such schools receiving financial aid.

Nonprofit Institutions - Advantages

The greatest advantages of attending a nonprofit college or university stem from the fact that these types of schools tend to be more traditional and more recognizable. In addition, nonprofit institutions can be considered by many to be more prestigious than a for-profit school.

Nonprofit schools also are more likely to be regionally accredited, which can be a big advantage when transferring credits from one school to another.

Another advantage to attending a nonprofit college or university can be linked to what many consider to be a social stigma tied to the recruiting efforts of for-profit schools. Because such schools need to generate a profit, they often employ aggressive marketing tactics to attract new students. Members of more traditional academic circles contend that these practices go against the true intent of a university - to education, not to make a profit.