The Difference Between Public and Private Nonprofit Colleges

Deciding to go back to school was huge, but now you're discovering it may be the easiest decision of this process. There are several options, and the details can be confusing. What's the difference between for-profit and nonprofit schools? What does a private, nonprofit school mean -- and why does it seem to cost so much more?

Here is some information that can help you decide what option is best.

For-Profit Colleges & Universities

One difference between nonprofit and for-profit schools is what they offer and what classes 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, which is why it seems like they have to make a profit -- they do. Their shareholders and boards require reports and feedback. These schools tend to be less selective in admissions. Their student loans are usually offered at a higher interest rate.

A 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, starting a career may be easier for these graduates.

About Nonprofit Schools

Most people would describe nonprofit schools when thinking about a traditional college. 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 ensuring 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.

Public vs. Private?

The other divide within colleges is public or private, but this difference is easier to understand.

Endowments, donations, and tuition fund private nonprofit schools. 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 can 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. The class sizes are larger with higher admittance rates, but there may be more variety in classes, programs, and a greater sense of community on campus.

What About Golden Gate University?

Golden Gate University is a nonprofit, private academic institution, which means it boasts smaller class sizes and robust student resources like the Helen Diller Center. And while it may cost more than public universities, GGU is a Yellow Ribbon school, making tuition more affordable for military-connected students.