[hen-ui-dynamic-experience placement=”aboveTheFold” /] [hen-ui-card variant=”background-white” border=”stroke”] [hen-ui-flex direction=”column” gap=”lg”] [hen-ui-heading variant=”h2″]Key Takeaways[/hen-ui-heading] [hen-ui-list variant=”unordered” bullet-style=”check” marker-color=”secondary”] [hen-ui-list-item][hen-ui-text variant=”b4″]Private companies or businesses operate for-profit colleges and typically direct revenue toward investors.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]These institutions often have open or rolling enrollment and rely on tuition, fees, and donations for funding.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Accreditation type and funding source can affect credit transfer options and school reputability.[/hen-ui-text][/hen-ui-list-item] [/hen-ui-list] [/hen-ui-flex] [/hen-ui-card] [hen-ui-text variant=”b4″]There are nearly 6,000 colleges in the U.S. Some are public, while some are private. Some are [hen-ui-link href=”/rankings/best-community-colleges/”]two-year institutions[/hen-ui-link], while some are four-year institutions. And some are nonprofit colleges, while others are for-profit colleges. But what exactly do for-profit and nonprofit mean when it comes to colleges?[/hen-ui-text] [hen-ui-text variant=”b4″]Put simply, [hen-ui-link href=”/resources/for-profit-vs-non-profit-colleges/”]for-profit colleges[/hen-ui-link] are colleges that operate for a profit — which can negatively impact students. In contrast, nonprofit colleges prioritize educational quality rather than profits. The [hen-ui-link href=”/resources/how-to-pick-a-college/”]choice of college[/hen-ui-link] can impact campus life and the student experience. It can also shape your [hen-ui-link href=”/careers/career-guide/in-demand-jobs-requiring-undergraduate-degree/”]career opportunities after graduation[/hen-ui-link].[/hen-ui-text] [hen-ui-text variant=”b4″]For many students, a nonprofit school is a better choice, especially if you’re looking for a more traditional college experience. But that’s not always the case. Our guide walks through the difference between for-profit and nonprofit colleges and how to choose the best college to reach your goals.[/hen-ui-text] [hen-ui-dynamic-experience placement=”editorialListings” /] [hen-ui-heading variant=”h2″]What Is a For-Profit College?[/hen-ui-heading] [hen-ui-text variant=”b4″]A for-profit college is a college owned and operated by a private company or business. They are often managed by investors and stakeholders and they generate revenue that is used for non-educational purposes.[/hen-ui-text] [hen-ui-text variant=”b4″]For-profit institutions usually don’t receive state or federal aid. Money made by for-profit colleges mostly comes from tuition and fees. They usually offer career-based and occupational training programs, often through online formats for nontraditional learners.[/hen-ui-text] [hen-ui-text variant=”b4″]Because profits from for-profit colleges are used for non-educational purposes, some nonprofit institutions and employers regard them as less reputable. However, some for-profit [hen-ui-link href=”/resources/accreditation/”]colleges have accreditation[/hen-ui-link], and these schools are valid educational options.[/hen-ui-text] [hen-ui-heading variant=”h2″]What Is a Nonprofit College?[/hen-ui-heading] [hen-ui-text variant=”b4″]Nonprofit colleges are schools that channel funds from tuition and fees into educational programs. They also receive support from state and federal governments, endowments, and donations.[/hen-ui-text] [hen-ui-text variant=”b4″]Public and private institutions can both be nonprofit entities. Nonprofit schools spend more money on instruction, curriculum development, and recruitment than their for-profit counterparts.[/hen-ui-text] [hen-ui-text variant=”b4″]Nonprofit institutions [hen-ui-link href=”/rankings/certificates/”]offer certificate programs[/hen-ui-link] and degrees that lead to careers and continuing education opportunities. Many [hen-ui-link href=”/magazine/employers-online-degrees/”]employers regard degrees[/hen-ui-link] from nonprofit schools as more reputable due to the funding that these institutions invest in high-quality educational programs.[/hen-ui-text] [hen-ui-heading variant=”h2″]For-Profit Colleges vs. Nonprofit Colleges: 5 Key Differences[/hen-ui-heading] [hen-ui-text variant=”b4″]For-profit colleges and nonprofit institutions can differ in affordability, admissions, quality of education, and accreditation. You should research the programs and schools that align with your personal and professional goals.[/hen-ui-text] [hen-ui-heading variant=”h3″]1. Purpose and Quality of Education[/hen-ui-heading] [hen-ui-text variant=”b4″]For-profit and nonprofit colleges differ in purpose and deliver different learner outcomes. For-profit schools typically offer career-oriented programs. They’re often more focused on earning revenue over student learning outcomes.[/hen-ui-text] [hen-ui-text variant=”b4″]Nonprofit colleges and universities, on the other hand, typically put a large percentage of their federal funding directly into education and student resources. Nonprofit institutions tend to have higher retention and graduation rates than for-profit institutions for these reasons.[/hen-ui-text] [hen-ui-heading variant=”h3″]2. Cost and Affordability[/hen-ui-heading] [hen-ui-text variant=”b4″]For-profit schools rely on [hen-ui-link href=”/resources/”]tuition, fees, and donations[/hen-ui-link] for funding, which can lead to higher costs. At the same time, for-profit schools do [hen-ui-link href=”/resources/college-finances/scholarships/”]offer scholarships[/hen-ui-link] and tuition discounts. You might be able to apply for federal financial aid so long as the for-profit school is accredited.[/hen-ui-text] [hen-ui-text variant=”b4″]Generally, for-profit colleges provide programs with comparable or higher price tags than programs at nonprofit institutions. Private nonprofit institutions are, on average, the most expensive schools to attend. This becomes especially clear when comparing the average cost of tuition between private and public schools. However, private schools are also able to provide more comprehensive financial aid packages that factor in your family’s income.[/hen-ui-text] [hen-ui-table] [hen-ui-table-caption]Average Cost of College, By School Type[/hen-ui-table-caption] [hen-ui-table-header] [hen-ui-table-row] [hen-ui-table-head scope=”col”]Type of School[/hen-ui-table-head] [hen-ui-table-head scope=”col”]Average Tuition and Fees[/hen-ui-table-head] [hen-ui-table-head scope=”col”]Average Total Cost of Attendance[/hen-ui-table-head] [/hen-ui-table-row] [/hen-ui-table-header] [hen-ui-table-body] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Public nonprofit[/hen-ui-table-cell] [hen-ui-table-cell data-title=”Average Tuition and Fees”]$9,700[/hen-ui-table-cell] [hen-ui-table-cell data-title=”Average Total Cost of Attendance”]$26,000[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Private nonprofit[/hen-ui-table-cell] [hen-ui-table-cell data-title=”Average Tuition and Fees”]$38,800[/hen-ui-table-cell] [hen-ui-table-cell data-title=”Average Total Cost of Attendance”]$55,800[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Private for-profit[/hen-ui-table-cell] [hen-ui-table-cell data-title=”Average Tuition and Fees”]$17,800[/hen-ui-table-cell] [hen-ui-table-cell data-title=”Average Total Cost of Attendance”]$32,900[/hen-ui-table-cell] [/hen-ui-table-row] [/hen-ui-table-body] [/hen-ui-table] [hen-ui-heading variant=”h3″]3. How They’re Funded[/hen-ui-heading] [hen-ui-text variant=”b4″]Public, nonprofit institutions receive significant financial support from state and federal government bodies, while private nonprofit schools are often funded through private endowments or grants. Tuition payments and fees also contribute to school revenue.[/hen-ui-text] [hen-ui-text variant=”b4″]For-profit colleges are owned by private companies and businesses. And unlike their nonprofit counterparts, for-profit institutions focus entirely on earning revenue through student tuition and fees, along with money from investors and corporate entities. For-profit colleges may also channel earned revenue into non-education expenses or directly to investors.[/hen-ui-text] [hen-ui-heading variant=”h3″]4. Admission Process[/hen-ui-heading] [hen-ui-text variant=”b4″]For-profit colleges usually have less rigorous admission standards than nonprofit schools. Both nonprofit and for-profit schools require a high school diploma or equivalent and a completed application. However, many for-profit schools have no GPA or test score requirements.[/hen-ui-text] [hen-ui-text variant=”b4″]For-profit institutions typically offer rolling or open enrollment as well. Unlike nonprofit schools, which generally have 2-3 admission cycles a year, for-profit institutions may allow you to enroll all year long.[/hen-ui-text] [hen-ui-text variant=”b4″]While high acceptance rates and flexible admission options can make for-profit schools a more accessible option, transfer opportunities are limited at these schools. For-profit schools tend to accept fewer transfer credits than nonprofit schools, and most nonprofit schools do not accept transfer credits from for-profit schools.[/hen-ui-text] [hen-ui-heading variant=”h3″]5. Programs and Accreditation[/hen-ui-heading] [hen-ui-text variant=”b4″]Academic programs and [hen-ui-link href=”/degrees/college-degree-levels/”]degrees vary by institution[/hen-ui-link], but for-profit and nonprofit schools share some similarities. Many for-profit schools offer professional and career-focused programs, as do their nonprofit counterparts. For example, nursing, business, and [hen-ui-link href=”/rankings/bachelors/best-online-bachelors-psychology/”]psychology degrees[/hen-ui-link] all appear at both for-profit and nonprofit schools.[/hen-ui-text] [hen-ui-text variant=”b4″]For-profit schools generally hold national accreditation, though some receive regional accreditation. Accreditation status affects transfer options, [hen-ui-link href=”/resources/college-finances/online-college-financial-aid/”]financial aid opportunities[/hen-ui-link], and overall reputability. Even if a program at a for-profit college offers the same coursework as nonprofit schools, you should always check the program’s accreditation status.[/hen-ui-text] [hen-ui-dynamic-experience placement=”editorialListings” /] [hen-ui-heading variant=”h2″]Which Type of Schools Are For-Profit and Nonprofit?[/hen-ui-heading] [hen-ui-text variant=”b4″]You should familiarize yourself with common for-profit and nonprofit designations. Here are a few types of schools in each category.[/hen-ui-text] [hen-ui-table] [hen-ui-table-caption]For-Profit and Nonprofit Colleges[/hen-ui-table-caption] [hen-ui-table-header] [hen-ui-table-row] [hen-ui-table-head scope=”col”]Type of School[/hen-ui-table-head] [hen-ui-table-head scope=”col”]For-profit or Nonprofit?[/hen-ui-table-head] [/hen-ui-table-row] [/hen-ui-table-header] [hen-ui-table-body] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Ivy League Schools[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Nonprofit only[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]State Universities[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Nonprofit only[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Community Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Nonprofit only[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Vocational-Technical and Career Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Mostly nonprofit[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Private Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Either nonprofit or for-profit[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Arts Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Either nonprofit or for-profit[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]International Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Mostly for-profit[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Online Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Either nonprofit or for-profit[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Specialized-Mission Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Either nonprofit or for-profit[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Religious-Affiliated Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Either nonprofit or for-profit[/hen-ui-table-cell] [/hen-ui-table-row] [hen-ui-table-row] [hen-ui-table-cell data-title=”Type of School”]Liberal Arts Colleges[/hen-ui-table-cell] [hen-ui-table-cell data-title=”For-profit or Nonprofit?”]Mostly nonprofit[/hen-ui-table-cell] [/hen-ui-table-row] [/hen-ui-table-body] [/hen-ui-table] [hen-ui-card variant=”background-white” border=”stroke” rounded=”lg” padding=”lg”] [hen-ui-card-content] [hen-ui-heading variant=”h2″ class=”text-secondary-700″]Nonprofit vs. For-Profit Colleges: Which Is Better for You?[/hen-ui-heading] [hen-ui-text variant=”b4″]A nonprofit college or university is typically the best option for most students. For-profit institutions can provide programs that meet the needs of your specific career path, but often without fulfilling other elements of the traditional college experience.[/hen-ui-text] [hen-ui-text variant=”b4″]Remember that for-profit colleges often value their bottom line over instruction, curricula, and learning outcomes. However, for-profit schools can offer positives, such as open admission, flexible schedules, and general convenience.[/hen-ui-text] [hen-ui-text variant=”b4″]Among for-profit colleges, you should be especially careful about “diploma mills.” These are for-profit schools that offer programs with no clear academic standards. Often, you don’t even need to take classes — you simply pay a fee and receive a degree.[/hen-ui-text] [hen-ui-text variant=”b4″]To avoid falling victim to a diploma mill, you should confirm accreditation status, explore admission and curriculum standards, and make sure the school has a physical address.[/hen-ui-text] [/hen-ui-card-content] [/hen-ui-card] [hen-ui-heading variant=”h2″]Frequently Asked Questions About For-Profit and Nonprofit Colleges[/hen-ui-heading] [hen-ui-heading variant=”h3″]Are universities nonprofit?[/hen-ui-heading] [hen-ui-text variant=”b4″]While many universities are nonprofits, including all public universities, some are for-profit institutions. You’ll need to check the institution’s status before applying. Reputable institutions list whether they’re nonprofit or for-profit on their websites.[/hen-ui-text] [hen-ui-heading variant=”h3″]Are public schools nonprofit?[/hen-ui-heading] [hen-ui-text variant=”b4″]Yes, public colleges and universities are nonprofit institutions. These schools receive funding from state and federal sources, and they operate as nonprofits. The same is true of public K-12 schools, which are nonprofit organizations.[/hen-ui-text] [hen-ui-heading variant=”h3″]Are for-profit schools bad?[/hen-ui-heading] [hen-ui-text variant=”b4″]For-profit colleges are not necessarily bad. They typically have a higher acceptance rate, offer flexible schedules, and emphasize career-focused educational programs. However, for-profit colleges also typically report lower graduation rates, higher costs, and fewer student services.[/hen-ui-text] [hen-ui-text variant=”b4″]Because they prioritize profits, these institutions may not invest as heavily in student learning outcomes. As a result, some for-profit schools have a poor reputation. Before applying to for-profit schools, research their reputation and alternative options.[/hen-ui-text] [hen-ui-heading variant=”h3″]What are some popular for-profit colleges?[/hen-ui-heading] [hen-ui-text variant=”b4″]There are many large for-profit colleges that operate in the U.S. Some of the [hen-ui-link href=”/rankings/online-colleges/popular-online-colleges/”]most popular include University of Phoenix[/hen-ui-link], DeVry University, and Grand Canyon University. For-profit colleges typically focus on technical and vocational education. Before attending a for-profit college, research the school’s total cost, graduation rate, and reputation.[/hen-ui-text] [hen-ui-separator /] [hen-ui-text variant=”b4″ tag=”em”]Page last reviewed November 5, 2023.[/hen-ui-text] [hen-ui-section-header title=”Popular with our students.” /] [hen-ui-article-row variant=”2-col” ids=”970,1538,905″][/hen-ui-article-row]