<p>I went out to dinner with friends this weekend who work for a college. We were discussing the colleges on my daughter's list and when I mentioned one my friend commented that the college in question was a for-profit college and we should watch out for that. I asked what he meant and he was very vague, just saying that they don't have the same standards/goals that other colleges have.</p>
<p>Can anyone explain this to me? What is the difference between a for-profit college and a not for profit college? The school in question is at the top of my daughters list and before she makes a choice I would like to know what this friend was talking about.</p>
<p>For profit colleges are designed to generate a profit that can be either used to grow the company or provide a dividend to shareholders. University of Phoenix, Capella, and Apollo Group are examples of for-profit colleges.</p>
<p>Not for profit colleges are private universities that are owned by a foundation or group that do not provide a return on investment to shareholders. Monies they earn can be used to grow the university, extra salaries for professors/staff, or additional scholarship money for students. </p>
<p>Technically there is little difference between a for profit corporation and not for profit corporation. Both can only charge tuition that the market will pay and both are under pressure to provide a solid education. </p>
<p>From a practical standpoint, some/most people probably think that a for profit education company is an evil corporation that puts making money a higher priority than educating students, while a non profit education company puts education first over making money.</p>
<p>The main mission of the non-for-profit institution is (or at least should be) providing the best possible education. The main mission of a for-profit organization is, generally, to make money. This may or may not interfere with the quality of education they provide.</p>
<p>To be honest, I’ve never heard of for-profit colleges and universities, but apparently there is a long list of them:
<p>Yes, but for profit institutions make money by providing the best quality education. If education quality suffers, ranking and prestige go down, which results in fewer students and less profits.</p>
<p>And not for profit institutions must focus constantly on the balance sheet because the only way they continue to exist in the future is to make sure that they are bringing in enough money to pay the bills…lose too much over the years and the non-profit will disappear just as quickly as the for profit institute.</p>
<p>DeVry University and DeVry Institute, for example, are for-profit colleges that are owned by DeVry, Inc., a company traded on the NYSE. The company also owns several other for-profit colleges. DeVry is accredited by the North Central Association, the same organization that gives accreditation to the University of Chicago, so its degrees appear to be legit.</p>
<p>The distinction between a corporation and a non-profit is pretty much the same as in other areas of commerce.</p>
<p>There have been some lawsuits re loan practices, and advertising versus actual experience.</p>
<p>You can see more about DeVry at Wikipedia here:</p>
<p>Sure, it’s University of La Verne, in La Verne, California. I honestly didn’t even know it was a for-profit university until this friend of mine mentioned it. They seem to be all about giving personal attention to the student and while they are supposed to send the financial aid package this week I have a feeling it may be very generous.</p>
<p>It is a traditional 4 year college. My daughter’s guidance counselor got her degree from there (just a few years ago) and has said good things about it. I know they offer a lot of online classes and have a large number of commuters.</p>
<p>The lines are beginning to blur between for profit and not-for-profit colleges. USC, I believe, has started some for-profit ventures that involve degree granting programs. Currently, these blends typically involve online programs and some professional training. The trend is moving toward the blended model for various reasons. Some of the for-profit programs can be quite good and some not-for-profit programs can be lousy. Exam each individually and evaluate on its own merits, not by the tax category into which it falls.</p>
<p>Excellent! Thank you SO much! I started to get worried that we were missing a big piece of the puzzle…I didn’t know where I could look to find out that information.</p>
<p>I think that for-profit colleges have a bit of a stigma in the professional world. We wouldn’t hire someone with a Devry or ITT Tech degree.</p>
<p>Daniel Webster College originally started out as an aviation school and they decided that they wanted to grow into a full University. They borrowed a lot of money to do so and built a very nice campus. Then came the economic downturn and the eventually sold themselves to a for-profit. Last week they announced that they were closing the aviation school. There were protests this past weekend. If nothing else, look at the loan statistics on for-profits vs non-profits.</p>
<p>Another caveat, do not expect merit, academic or talent based scholarships, or need based grants from the for-profit institutions. Aid is limited to what one qualifies for under FAFSA, and potentially some state educational programs.</p>
<p>Beware - credit earned at some for-profit colleges is not transferable anywhere else.
If you go and transfer then none of your credits will move with you.</p>
<p>^ That can be true at any college, whether state, for profit, or non-profit. The tax status of the college doesn’t affect the transferability of the credits, the accrediation does.</p>