What are For-Profit Colleges?
For-profit colleges have been highly criticized in the past couple of years because they charge students extremely high attendance costs. On top of this, these educational institutes seem to have strangely high failure and dropout rates.
Contrary to popular belief, for-profit colleges do not actually offer students better value for their money. In the 2018 academic year, each student had to pay a total of roughly $8,500 more for their schooling fees than those who attended public colleges. However, the pass rate was lower than that of these public institutions.
This article will discuss precisely what a for-profit college is and how they differ compared to nonprofit educational institutions. Also, we will mention a few examples of for-profit colleges.
What Is a For-Profit College?
In short, a for-profit college is an institution that is operated by a private, income-seeking company. For example, you may find that a private IT business develops its own educational institution to teach young students about the industry. However, since the school is privately owned, the company will need to pay for all equipment, staff, and teaching facilities.
With that being said, the company will make a significant profit. They can charge the students whatever they think is suitable. For this reason, the price of these colleges is usually much higher than that of public or government schools.
For-Profit Vs. Nonprofit Colleges
One of the most significant differences between for-profit and nonprofit schools is that for-profit institutions rely on investors to make critical decisions. On the other hand, nonprofit colleges generally allow educators to make these decisions.
Also, since nonprofit colleges receive a set amount of money from the government, their main goal is not to earn a profit. Instead, they aim to provide students with the best possible service. For-profit schools generally value making money above all else, meaning that teachers are often less successful in helping students establish lucrative careers.
Examples Of For-Profit Colleges
Even though these institutions have been under scrutiny recently, there are various major for-profit colleges that still operate today. A few examples of these include:
- Academy of Art University
- Bryant & Stratton College
- Fashion Institute of Design and Merchandising
- Southwest University of Visual Arts
- Grand Canyon University
- DigiPen Institute of Technology
There are various for-profit education institutions around the world, such as the Bryant & Stratton College. These schools are funded by private companies that hope to make an income.
For this reason, students often have to pay very high school fees, leading to large amounts of debt. Also, providing students with an excellent teaching service is not their main priority, leading to high dropout or failure rates.