Shorter Version

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Though for-profit universities can be an excellent fit for some students, these institutions are widely criticized due to the many risks associated with attending them. If you are considering a for-profit university for graduate school, it is extremely important that you are aware of the risks of for-profit universities.

What is a for-profit institution?

According to TheBestSchools.org, for-profit universities are “institutions of higher education owned and operated by private, profit-seeking businesses.” This means that an individual or group of shareholders owns the institution, and profits are directly linked to that ownership. 

This is different than a non-profit institution, where non-profits are not owned by an individual or group of shareholders, and “any profits made by a non-profit school or organization must be reinvested back into or held by the organization itself.”

To help you understand the possible downsides and risks of for-profit universities, four common problems are outlined below:

1) Cost

• Attending a for-profit university comes with a hefty price tag. You might be surprised to learn that it actually costs significantly more compared to attending a non-profit university.
• Due to the high cost of tuition, students often accrue large amounts of debt while in pursuit of their degree.

2) Quality of Education

• In order to keep their doors open, for-profit institutions rely on student enrollment and tuition money. Therefore, the acceptance rates are extremely high. This might lead to classes being overcrowded or unavailable if the university is not able to maintain a reasonable student-faculty ratio.
• In order to maintain and boost enrollment numbers, marketing and advertising are a primary priority for for-profit schools. As a result, only 25.5% of the budget is used for instruction, which undoubtedly affects the quality of education as a result.

3) Legitimacy and Reputation

• Accreditation does not equal reputable, but it’s certainly better than no accreditation at all.
• Sometimes, employers will overlook prospective hires if the individual did not receive a degree or certificate from an accredited program.

4) Employment Gap and Return on Investment

• As a result, poor overall outcomes for students who pursue these programs are an unfortunate reality.
• According to OnlineColleges.net, “certificate earners at for-profit colleges are less likely to find employment after graduation and end up making significantly less than their non-profit counterparts.”

If you are considering attending a for-profit university for grad school, take time to thoroughly research, assess, and address these risks. Making an informed decision is key before beginning any graduate degree, but this is especially true if you are considering the for-profit route.

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Longer Version

Est. Reading Time: 4 Minutes

You might have seen for-profit institutions in quite a few headlines over the years. What’s all the fuss? Though for-profit universities can be an excellent fit for some students, these institutions are widely criticized due to the many risks associated with attending them.

This article will discuss the four risks commonly associated with attending for-profit universities.

What is a for-profit institution?

According to TheBestSchools.org, for-profit colleges are “institutions of higher education owned and operated by private, profit-seeking businesses.” This means that an individual or group of shareholders owns the institution, and profits are directly linked to that ownership.  

This is different than a non-profit institution, where non-profits are not owned by an individual or group of shareholders, and “any profits made by a non-profit school or organization must be reinvested back into or held by the organization itself.”

What are the risks of for-profit universities?

For-profit schools are subject to criticism primarily due to the nature of how profits are handled. If you are considering a for-profit university for graduate school, it is extremely important that you are aware of the risks of attending this kind of institution.

To help you understand the possible downside associated with for-profits, four common problems are outlined below:

1) Cost

• Attending a for-profit university comes with a hefty price tag. You might be surprised to learn that it actually costs significantly more compared to attending a non-profit university. U.S. News & World Report states that tuition and fees at for-profit colleges averaged $15,130 in the 2013-2014 academic year. This is compared to $3,264 at two-year public college (in-state students), and $8,893 at four-year public colleges (in-state students).
• Due to the high cost of tuition, students often accrue large amounts of debt while in pursuit of their degree. For those who need additional time to complete the program and are unable to graduate in six years (only 31.5% of students achieve a 6-year graduation), these costs will only accumulate further.

2) Quality of Education

• In order to keep their doors open, for-profit schools rely on student enrollment and tuition money. Therefore, the acceptance rates are extremely high. This might lead to classes being overcrowded or unavailable if the university is not able to maintain a reasonable student-faculty ratio.
• In order to maintain and boost enrollment numbers, marketing and advertising are a primary priority for for-profit schools. As a result, only 25.5% of the budget is used for instruction, which undoubtedly affects the quality of education as a result.

3) Legitimacy and Reputation

• Accreditation does not equal reputable, but it’s certainly better than no accreditation at all.
• What is accreditation and why is it important? Accreditation is the “process that institutions of higher education undergo to confirm that they meet the strictest educational standards.” Accreditors are private organizations that review institutions and programs and the purpose is to set standards for universities and colleges to be held to. The process also “ensures accountability of schools and degree programs in order to boost public trust and confidence.”
• Sometimes, employers will overlook prospective hires if the individual did not receive a degree or certificate from an accredited program. If you are considering a for-profit program, remember to check for accreditation, the date the institution earned accreditation, as well as the current accreditation status.

4) Employment Gap and Return on Investment

• It is common for for-profit institutions to promise students career advancement after completion of a program. Unfortunately, the resources needed to execute those promises might not exist. As a result, poor overall outcomes for students who pursue these programs are an unfortunate reality.
• According to OnlineColleges.net, “certificate earners at for-profit colleges are less likely to find employment after graduation and end up making significantly less than their non-profit counterparts.”

So, what does this mean?

If you are considering attending a for-profit university for grad school, take time to thoroughly research, assess, and address these risks. Making an informed decision is key before beginning any graduate degree, but this is especially true if you are considering the for-profit route.

Regardless of what a graduate degree looks like for you, make sure you are selecting a school that prioritizes your success as a student!

To sum it up…

Despite bad press and a poor reputation, not all for-profit universities are terrible and corrupt! Certain programs can absolutely be the right fit for students, and should ultimately be pursued. For example, you might be considering the for-profit option if you had a low GPA in undergrad, if you are seeking a program that is not readily available online or at non-profit universities, or if you are pursuing a certificate for a specific industry. Regardless of why you are interested in going the for-profit route, it is important to be aware of the risks associated with pursuing a graduate degree from this kind of institution.

The most important takeaway is for students to understand that pursuing a degree (graduate, undergraduate, certificate, or otherwise) from a for-profit institution poses risks. All students should be made aware of these risks so they can make the best, well-researched decision possible.

Actionable Steps

About the Author

Dr. Alyssa Harmon-Salter

Doctor of Education in Educational Leadership

Alyssa holds an Ed. D. in Educational Leadership from Northern Arizona University. For the last 7 years, she has coached hundreds of college students on how to be successful academically and in prepping for a job.
Full Bio | LinkedIn

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