The Low-Down on For-Profit Colleges

College Search Basics: What Are the Differences Between Non-Profit, Public and For-Profit Colleges?

A productive college search can be difficult at times, but there are ways to shrink your list. One way is to identify which operational structure best fits your needs. Many colleges and universities seem to have similar features, but the way they are structured or managed can reveal a lot about their academic programs and social environment. When you start targeting individual colleges, you should know which general category that school falls under: Non-Profit (private or public) or For-Profit.   Click just above this text for a basic rundown on the main differences between non-profit, public and for-profit colleges and read more about the College Categories as you continue your search.

Private, Non-Profit

Private, non-profit colleges and universities receive funding primarily from student tuition and endowments. These institutions function as non-profit organizations that usually follow the leadership of a board of trustees. Private colleges and universities may receive some governmental support in the form of tax breaks and student loans, but operating mostly on private support allows them to develop their own institutional plan.

Public

Public colleges and universities receive funding from tuition and endowments, but the larger part of their funding comes from state or local taxes. Most public postsecondary schools are state-run, which lowers the tuition for in-state students.

For-Profit

For-profit colleges are run by companies that operate under the demands of investors and stockholders. These institutions are privately run and exist, at least in part, to earn money for their owners. Nevertheless, for-profit colleges can receive up to 90 percent of their revenue from federal student aid.

Watch NACAC members Alan Byrd and Julie Kampschroeder in this story out of KSDK in St. Louis

Why Have For-Profit Colleges Been in the News Recently?

Investigations by the federal government, media, and States Attorneys General have revealed countless instances of unscrupulous for-profit colleges (particularly those that are run by large, publicly-traded companies), engaging in deceptive, aggressive and manipulative tactics to enroll as many students as possible, without regard for their potential for success or ability to afford tuition, in an effort to maximize profits.

The wealth of sources included on NACAC's Program Integrity page describe how these colleges have adversely impacted students and the taxpayers that fund federal and state financial aid. Additionally, the exhaustive report For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success includes the findings of the Senate Committee on Health, Education, Labor and Pension's two year investigation of the for-profit sector.

Editorials on HELP Committee Investigation

Date	Editorial Headline	Paper/Publication	State
July 30, 2012	For-profit College, What a Racket	USA Today	National
July 31, 2012	For-profit Colleges Put Investors First, Report Says	Boston Globe	MA
July 31, 2012	For-profit Colleges Get An 'F'	Kansas City Star; Salt Lake City Deseret Morning News; Utica Observer-Dispatch; The Myrtle Beach Sun-News; South Bend Tribune; The Medina Journal Register	MO;UT;NY;SC;GA;IN
July 31, 2012	Debate: Are For-profit Colleges OK?	Fort Myers News-Press	FL
July 31, 2012	False Promises	The New York Times	NY
July 31, 2012	Call to Action	Louisville Courier-Journal	KY
July 31, 2012	Caveat Emptor: For-profit College Risks	Santa Rosa Press Democrat	CA
August 1, 2012	A Lesson in Greed in For-Profit School Industry	Chicago Sun-Times	IL
August 1, 2012	College Scam Clampdown	Fort Wayne Journal Gazette	IN
August 1, 2012	For-profit Colleges Not Good Use of Taxpayer Funds	Kennebec Journal	ME
August 2, 2012	Senate Report Details Risks of For-profit Colleges	The Sacromento Bee	CA
August 2, 2012	Flaws in Aid to For-profit Colleges	San Francisco Chronicle	CA
August 2, 2012	For-profit Colleges: Quite a Racket	Manitowoc Herald Time Reporter News	WI
August 3, 2012	Taxpayers Bilked by For-profit Schools	The Boulder Daily Camera	CO
August 3, 2012	Rein in Abuses by For-profit Colleges	Long Island Newsday; The Key West Citizen	NY;FL
August 3, 2012	Closer Scrutiny of For-Profit Schools	The New York Times	NY
August 3, 2012	For-profit Colleges Need More Scrutiny	Des Moines Register	IA
August 5, 2012	For-profit Colleges Must Stop Ripping Off Student, Taxpayers	Newark Star-Ledger	NJ
August 5, 2012	Why For-profit Colleges Flunk	The Modesto Bee	CA
August 5, 2012	Failed Schools: Congress Must Fix the For-profit College Industry	Pittsburgh Post-Gazette	PA
August 6, 2012	The High Cost of For-profit Education	The Roanoke Times	VA
August 6, 2012	For-profit Schools Get a Bad Grade	Loveland Reporter Herald; The Longmont Daily Times-Call	CO
August 6, 2012	For-profit Colleges: Raw Deal for Taxpayers	Tampa Bay Times	FL
August 7, 2012	Senate Report Details Risks of For-profit Colleges	Fresno Bee	CA
August 7, 2012	We Deserve Better From For-profit Colleges	The Mankato Free Press; The Norman Transcript	MN;OK
August 7, 2012	The Rising Concern Over Debt and For-profit Colleges	The Mount Vernon-Lisbon Sun	IA
August 8, 2012	Less Profit, More College	The Corbin Times-Tribune	KY
August 10, 2012	Failing Grade: Congress Must Reform For-Profit College System	Harrisburg Patriot News	PA
August 10, 2012	For-profit Colleges Must Clean Up Their Act	Salem Today's Sunbeam	NJ
August 10, 2012	Protect Students From Being Duped by For-profit Colleges	The Palm Beach Post	FL
August 12, 2012	Too Many For-profit Colleges Fail to Deliver for Students	The Tacoma News Tribune	WA
August 12, 2012	More Work to Do	The Quad City Times	IA
August 12, 2012	Higher Ed System Needs Some Schooling	Long Island Newsday; Utica Observer-Dispatch	NY;OK
August 13, 2012	For-profit Debt Studies	The Ogden Standard Examiner	UT
August 15, 2012	For-profit College Industry Needs Reform, Monitoring	Shreveport Times	LA
August 15, 2012	For-profit Colleges Focus on Revenue at the Expense of Their Students	The Buffalo News	NY
August 16, 2012	For-profit Colleges Are Wasting Public Funds	The Spokane Spokesman-Review	WA
August 16, 2012	About Those Deceptive and Aggressive Sales Tactics of For-profit Colleges	Inside Tucson Business	AZ
August 18, 2012	For-profit College Report Card is Unsettling	The Portland Oregonian	OR
August 18, 2012	For-profit Colleges: Costly For-Profit Failures	The Lakeland Ledger; The Lafayette Journal and Courier	FL;IN
August 20, 2012	Beware of For-profit Colleges	The Charleston Gazette	WV
August 21, 2012	For-profit Excesses	The Gainesville Sun	FL
August 21, 2012	Education Need	The Lawrence Journal-World	KS
August 21, 2012	Proceed With Care	Fort Wayne Journal Gazette	IN
September 7, 2012	Student Loans Need More Reforms	Concord Monitor	NH
September 9, 2012	For-profit Colleges Need Closer Scrutiny	Boston Globe	MA
September 12, 2012	Stop Rip-off of US Veterans, Taxpayers	Asheville Citizen-Times	NC

Counselors: Training on For-Profit Colleges

Looking for help on how to talk to students about for-profit colleges? Check out the following NACAC Webinars on the topic:

Proprietary Institutions Part I

Proprietary Institutions Part II: Outcome Indicators and Practical Tips

Students: Know Your Rights

Feeling lost, left behind, or cheated during the college admission process? Remember that you have rights too! See NACAC's Students’ Rights and Responsibilities in the College Admission Process brochure and, if you feel you've been mistreated, you get help from a variety of consumer- and student-advocacy groups including U.S. PIRG, The Institute for College Access and Success, and the National Consumer Law Center.

Learn More

Check out the following college search resources from the Department of Education:

Still have questions? Contact NACAC at legislative@nacacnet.org.