Key takeaways – Factors to weigh before enrolling at a for-profit college
Enrolment at for-profit colleges surged significantly in autumn 2024, particularly among first-year students, according to the national student clearinghouse research centre.
Four-year, for-profit colleges witnessed the highest overall enrolment increase among all types of institutions—7.5%, as per new clearinghouse data. “The fact that college enrolment has rebounded from the COVID drop is encouraging news,” stated Donna Stelling Gurnett, president of the association of private colleges, which represents a group of proprietary and non-profit colleges in new york.
“The approximately 750,000 undergraduates attending for-profit colleges nationwide constitute only a fraction of the 16 million total undergraduate students in the U.S. It does not take many students to make the percentage increase appear significant. Additionally, public and non-profit institutions have experienced less volatility in recent years since the pandemic.”
The most substantial increase in for-profit college enrolment was observed among mature students aged 25 or older, soaring by approximately 49%, according to clearinghouse data.
“This age group is often looking for employment, and they may perceive much of the advertising as geared towards preparing students for jobs,” says Colleen Paparella, founder of DC College Counselling, a university admissions counselling firm. “They are likely focused on gaining employment and believe this is the best way to achieve that.”
For-profit colleges—often funded by investors and sometimes subsidiaries of larger corporations—typically provide online education options, niche or job-specific programmes, and attract adult learners who value flexibility and convenience. However, not all for-profit institutions are equal, so prospective students should consider the following factors before enrolling.
Consider your academic and career goals
When evaluating any institution, “students should consider retention and graduation rates, financial aid and net costs, whether the programmes align with their career plans, accreditation status, and other key metrics,” Gurnett advises.
Assessing one’s goals and reviewing supporting data is crucial, Paparella adds, suggesting that students request relevant information from the institution.
For-profit colleges can be beneficial for those seeking to master specific software or gain credentials required by employers. Career-focused institutions specialising in skilled trades or healthcare have gained traction in recent years, says Jason Altmire, president and CEO of Career Education Colleges and Universities, a national trade association representing private postsecondary career schools and advocating for the for-profit education sector.
“For years, traditional four-year liberal arts education was prioritised, but now there is greater recognition of the demand for career-oriented education,” Altmire notes.
Nonetheless, students should conduct “thorough and careful research into their objectives,” advises Stephanie Walker, vice president for enrolment management at Cedar Crest College, a non-profit women’s university in Pennsylvania.
Beware of aggressive marketing tactics
For-profit colleges engage in extensive marketing compared to non-profit institutions, warns Laura Northart, co-founder of Loudoun College Counselling in Virginia.
“Unfortunately, many students are unaware of what to consider, and institutions’ marketing may present an overly attractive narrative, leading families in the wrong direction,” she says.
Some for-profit institutions specifically target vulnerable groups, such as veterans accessing GI Bill benefits, which should raise red flags, Walker notes.
“If it sounds too good to be true, it usually is,” Paparella cautions. “There is no shortcut to obtaining an education.”
Understand the full cost of attendance
According to the College Board’s Trends in College Pricing 2024 report, the average tuition and fees for first-time, full-time undergraduate students at four-year, for-profit institutions were $16,030 for the 2023-2024 academic year. This is more expensive than public two-year and in-state four-year institutions, which cost $3,950 and $11,310 on average, respectively, but significantly less than private non-profit four-year colleges, which averaged $41,740.
However, there may be hidden costs. “Advertised tuition and fees often do not reflect the total cost of attendance,” Paparella explains. “Many students anticipate paying one amount but end up facing much higher expenses.”
Non-profit institutions also impose fees for courses, technology, and first-year experiences. When budgeting, students should compare financial aid options across a variety of institutions before making a final decision.
Verify accreditation status
Accreditation is crucial as it determines an institution’s eligibility for federal financial aid programmes. This information is typically available on a school’s website or through accrediting bodies.
“Accreditation signifies that an institution has been evaluated and meets standards for student success,” Altmire says. “When considering a for-profit school, ensure that a reputable accreditor has vetted it.”
Some for-profits hold national rather than regional accreditation. Regionally accredited institutions—primarily non-profits—are more widely recognised and selective. Additionally, credits from nationally accredited institutions, such as career and technical schools, may not transfer to regionally accredited universities.
Walker advises students to confirm whether a chosen programme meets certification exam requirements for their intended career path.
Investigate student outcomes
Studies, including those by the National Centre for Education Statistics, suggest that students at private for-profit institutions tend to have lower six-year completion rates than those at public and non-profit universities.
More Read
“Often, data comparing the for-profit sector does not distinguish between different types of institutions,” Altmire says. “For instance, online programmes present unique challenges. When evaluating graduation rates, compare like-for-like—an online for-profit school should be measured against an online programme at another institution, not against a prestigious public university as a whole.”
For-profit marketing often highlights job placement and transfer rates, so prospective students should verify claims. Walker suggests consulting faculty members, current students, and alumni to gain a realistic perspective.
Additionally, researching whether an institution invests in academic support and student experiences can indicate the quality of education and potential for graduation success.
“Choosing a university is a deeply personal decision that can profoundly impact an individual’s future,” Gurnett states. “Comparing metrics allows students to strip away marketing rhetoric and focus on concrete data and outcomes. The right institution should offer a suitable balance of academic programmes and support to ensure long-term success, regardless of its ownership structure.”
