Pros and Cons of For-Profit Colleges: What You Need to Know in 2025

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

Share

Popular College Degrees Worth Considering in 2025

Computer Science

A computer science program emphasizes both the theoretical principles of computation and the practical design of software and hardware systems. It engages students in the study of data structures, algorithms, programming languages, and specialized domains such as artificial intelligence, cybersecurity, and software engineering. Through this training, graduates develop advanced analytical and problem-solving abilities that enable them to design, implement, and optimize complex technological solutions.

Business Administration

A degree in Business Administration develops a comprehensive understanding of organizational operations and decision-making processes. The curriculum integrates key business disciplines, including accounting, finance, marketing, and management, to provide students with essential knowledge across functional areas. This program’s versatility equips graduates with transferable skills applicable to diverse industries and professional roles, making it a strong foundation for both entry-level positions and advanced career pathways.

Management Information Systems (MIS)

Management Information Systems (MIS) is an interdisciplinary field that integrates business principles with technological applications. The program trains students to leverage information systems in addressing organizational challenges, streamlining processes, and enhancing decision-making. In contrast to traditional computer science, MIS emphasizes the strategic deployment of technology to achieve business objectives and sustain competitive advantage.

Social Work

A Social Work program equips students with the knowledge and skills to support individuals, families, and communities in addressing challenges and enhancing overall well-being. The curriculum emphasizes human behavior, social justice, and policy analysis, preparing students to advocate effectively for marginalized and vulnerable populations. Graduates enter the profession ready to serve in a wide range of environments, including schools, healthcare institutions, nonprofit organizations, and government agencies.

Nursing

A Nursing program delivers a rigorous, science-driven education that prepares students to deliver safe and effective patient care. The curriculum integrates courses in anatomy, physiology, pharmacology, and clinical practice while emphasizing health promotion, disease prevention, and patient advocacy. By entering the profession, graduates position themselves at the forefront of healthcare delivery and gain access to a stable, highly sought-after career path.

What is a for-profit college and how is it different from nonprofit universities?

A for-profit college is a higher education institution operated by private owners or corporations with the primary goal of generating revenue for investors. Unlike nonprofit universities, which reinvest surplus funds into academic programs, student services, and campus development, for-profit schools direct earnings to shareholders.

This distinction shapes how each type of institution functions and impacts students’ educational experiences, particularly for those seeking the easiest college degree options that promise faster workforce entry.

Below are the differences between for-profit and nonprofit universities. Students should weigh these contrasts carefully before deciding which path aligns with their goals.

• Mission and Funding: Nonprofit universities prioritize education and community impact, while for-profit colleges operate as businesses seeking profit from tuition.
• Tuition and Aid: For-profit institutions often have higher tuition relative to public schools and provide fewer institutional grants or scholarships.
• Programs Offered: Many for-profits emphasize short-term, career-focused training, while nonprofits balance vocational programs with liberal arts and research opportunities.
• Accreditation and Transferability: For-profits may hold national accreditation, which is less widely recognized, making credit transfers more difficult compared to regionally accredited nonprofits.
• Student Outcomes: Graduation and job placement rates at for-profits tend to be lower than those at nonprofit universities, reflecting differences in institutional support.

Will earning a degree from a for-profit college influence your job prospects?

Earning a degree from a for-profit college can shape job prospects in complex ways. While these institutions often provide direct, career-oriented training, the weight of the degree varies depending on industry standards, employer perceptions, and accreditation. For many students, the appeal lies in pursuing an accelerated college degree that allows quicker entry into the workforce while balancing family or job responsibilities.

Enrollment trends also suggest that students continue to seek these options; private for-profit four-year colleges saw a 5.1% enrollment increase in 2024 and 3.7% in 2025, indicating a steady demand for their programs. Still, the career payoff depends largely on the program’s reputation and how it aligns with professional requirements.

Here are the ways a for-profit degree can influence employment outcomes:

• Industry-Specific Credentials: Fields like healthcare value licensure, so a nursing degree from Chamberlain University can carry equal weight if graduates pass board exams.
• Reputation and Accreditation: Employers may view degrees from lesser-known for-profits with caution, especially in fields where institutional prestige matters.
• Specialized Training: IT support and cybersecurity roles often prioritize certifications, which for-profits such as Colorado Technical University are designed to deliver.
• Comparative Credibility: A business degree from a regional nonprofit university may appear stronger to employers than one from a smaller for-profit college.
• Career Alignment: Success depends less on the “for-profit” label itself and more on how well the program fits long-term goals and job market needs.

This chart from the National Student Clearinghouse Research Center details the annual percentage change in total enrollment for private for-profit four-year institutions.

Why are for-profit colleges often more expensive than public schools?

For-profit colleges often cost more than public schools because of their funding structures and operational priorities. Unlike public institutions, which receive state subsidies to offset tuition, for-profits rely heavily on tuition and fees as their primary revenue source. This model shifts more of the financial burden directly onto students, making it harder for those seeking a cheap online bachelor degree to find affordability within the for-profit sector.

Here are several factors that help explain why for-profit colleges often carry higher costs compared to public institutions:

• Tuition Rates Are Higher: The average tuition and fees at private for-profit colleges reached $16,030 in 2023 to 2024, far exceeding the average for in-state students at public four-year universities.
• Limited State Funding: Public institutions benefit from state appropriations that reduce costs for residents, while for-profits operate without such support.
• Profit Motive: For-profit schools must generate returns for investors or shareholders, which can drive up tuition compared to nonprofit counterparts.
• Marketing and Recruitment Costs: Many for-profits allocate significant budgets to advertising and recruitment, and these expenses are often reflected in tuition prices.
• Fewer Institutional Scholarships: Unlike nonprofits, for-profits typically offer minimal institutional aid, leaving students to cover more of the sticker price with loans or out-of-pocket payments.

Do credits from for-profit colleges transfer to other institutions?

Credit transferability is one of the most significant challenges facing students at for-profit colleges, especially for those who plan to continue their education beyond the initial degree. The transferability of credits often depends on accreditation type, institutional reputation, and the alignment of coursework with the receiving school’s academic standards.

Understanding credit transfer is essential for students considering for-profit colleges, since it directly impacts future education options. Here are some aspects to consider:

• National vs. Regional Accreditation: Most for-profits are nationally accredited, which emphasizes career-focused training. However, regionally accredited schools, where many students later transfer, often reject these credits.
• Barriers to Graduate Study or Transfer: If you plan to switch schools or pursue a master’s degree, you may need to retake courses, which adds both time and cost.
• Student Responsibility: Always check a school’s accreditation through CHEA or the US Department of Education, and confirm with potential transfer schools before you enroll.

What types of programs and degrees do for-profit colleges usually offer?

For-profit colleges typically specialize in programs that emphasize workforce readiness and applied learning rather than broad academic study. Unlike many nonprofit universities that prioritize broad liberal arts education, for-profits build curricula around direct career pathways. Their offerings are designed to respond quickly to labor market shifts, with particular strength in fields such as healthcare, technology, and business services. 

For-profit institutions often market themselves to nontraditional learners, who value flexible scheduling, online delivery, and accelerated completion formats. This focus makes them appealing to students seeking quick entry or advancement in specific careers.

These are the programs and degrees for-profit colleges offer:

• Certificate and Diploma Programs: Short-term training in fields such as medical assisting, cosmetology, paralegal studies, or IT support prepares students for entry-level employment.
• Associate Degrees: Career-oriented associate programs, particularly in healthcare, business administration, and technical fields, focus on practical skills that connect directly to job roles.
• Bachelor’s Degrees: Applied bachelor’s programs, such as nursing, cybersecurity, and business management, offer specialized pathways with accelerated or flexible formats.
• Graduate Degrees: Some for-profit universities provide master’s and doctoral programs, especially in education, business (MBA), and healthcare, though these degrees vary in reputation and transferability compared to nonprofit institutions.
• Online and Hybrid Delivery: For-profit colleges frequently use online or blended models, making them accessible to working adults, military members, and nontraditional learners.

Are for-profit colleges a good option for working adults or parents?

For-profit colleges often position themselves as accessible pathways for students balancing multiple roles. Enrollment trends highlight this appeal: part-time enrollment reached 306,000 in 2024 and grew slightly to 308,000 in 2025. These numbers suggest that working adults and parents continue to rely on for-profit institutions for flexible education options, particularly through online degrees for working adults, which combine convenience with targeted career training.

Here’s why for-profit colleges are a good option for working adults or parents:

• Flexible Scheduling: For-profits frequently offer evening, weekend, and accelerated courses that allow learners to progress without pausing their careers.
• Online and Asynchronous Learning: Many programs incorporate online formats, giving parents and professionals the freedom to study on their own schedules.
• Career-Focused Curriculum: Shorter, applied programs enable adults to quickly reskill or upskill for career advancement while managing personal responsibilities.

This chart from the National Student Clearinghouse Research Center shows the total part-time enrollment in for-profit colleges.

What are the graduation and job placement rates for for-profit schools?

Graduation and job placement rates at for-profit colleges reveal both opportunities and challenges for students. These institutions often market themselves as career-focused, but their outcomes differ significantly from nonprofit schools.

Graduation Rates

When examining undergraduate graduation rates, a clear disparity emerges between for-profit and nonprofit institutions. Public colleges report a 6-year graduation rate of 63%, while private nonprofit colleges reach 68%, reflecting stronger student persistence and completion. 

By contrast, private for-profit colleges show a markedly lower 29% 6-year graduation rate, raising concerns about institutional support and long-term student success. This significant gap highlights the importance of evaluating both academic quality and student services when considering enrollment in a for-profit institution.

Job Placement Realities

Job placement outcomes at for-profit colleges reveal a mixed picture. Some institutions demonstrate strong results in fields such as healthcare, IT, and business administration, especially when programs prepare students for licensure or certification exams. 

Yet, inconsistent career services and limited employer recognition in certain industries hinder many graduates’ prospects. Programs tied to regulated professions, such as nursing or allied health, generally offer more reliable pathways into employment, while general degrees often lack the same level of credibility in the job market.

Institutional Variability

For-profit colleges vary widely in quality. Well-known schools with regional accreditation, like Capella University, often match labor market needs and lead to better job outcomes. In contrast, lesser-known nationally accredited schools may face low employer trust, putting graduates at a disadvantage. 

While these colleges can provide direct career pathways, their undergraduate graduation rates are lower than nonprofit institutions, and job placement results are uneven. Students should carefully consider these factors when deciding if a for-profit degree fits their career goals.

Do students at for-profit colleges qualify for federal financial aid and scholarships?

Students at accredited for-profit colleges can qualify for federal financial aid, but the level of support often differs from nonprofit institutions. Eligibility depends on the school’s participation in Title IV programs, which allow students to access Pell Grants, federal student loans, and certain need-based assistance. 

While scholarships play an important role in paying for college, 60% of families in 2024 to 2025 relied on them, receiving an average of $8,004. However, students at for-profit colleges are less likely to receive institutional scholarships than their peers at nonprofit schools. 

Here are some things to know about financial aid and scholarships at for-profit colleges:

• Borrowing Rates are Higher: Among 2019 to 2020 bachelor’s degree recipients, only 18% of for-profit graduates finished without borrowing, while 35% of private nonprofit and 39% of public university graduates avoided loans.
• Institutional Aid is Limited: For-profit colleges generally provide minimal merit- or need-based grants and rely heavily on federal aid
• Military Benefits may Apply: Some for-profits accept GI Bill benefits for veterans. But overall, nonprofit institutions tend to offer broader support and resources for military-affiliated students.

While financial aid is available, students at for-profit colleges tend to rely more heavily on loans and face fewer scholarship opportunities, making financial planning especially important.

What are the biggest risks or downsides of attending a for-profit college?

Attending a for-profit college carries several notable risks that students must weigh carefully before enrolling. One of the most significant concerns lies in higher tuition costs. The average tuition and fees at private for-profit colleges reached $16,030, as mentioned earlier, which often exceeds the cost of attending public universities. 

Because these institutions usually provide fewer institutional scholarships or grants, students frequently rely heavily on federal loans, creating a higher risk of long-term debt burdens. Here are the other downsides of for-profit colleges:

• Credit Transfer Barriers: National accreditation limits recognition, making it difficult to transfer credits or pursue graduate study. 
• Variable Program Quality: Some schools excel in career-focused fields, but others face criticism for weak academic rigor.
• Low Graduation Rates: Undergraduate graduation rates remain significantly lower than those at nonprofit colleges.
• Uneven Job Placement: Strong outcomes occur in licensed professions, but general degrees often carry less employer value.
• Aggressive Recruitment Practices: Marketing may overstate job prospects, leaving students unprepared and overburdened by debt.

How do you decide if a for-profit college is worth it for your career goals?

Deciding whether a for-profit college is worth pursuing requires students to carefully assess how well the institution aligns with their personal, academic, and career goals. For-profit colleges often focus on accelerated, career-specific programs, appealing to those seeking rapid workforce entry.

However, the broader for-profit industry faces challenges. Despite generating an estimated $13.6 billion in 2025, US for-profit universities continue losing students to more affordable nonprofit and vocational programs.

Below are factors prospective for-profit students must evaluate:

• Accreditation: Regional accreditation facilitates smoother credit transfer and graduate school access, whereas national accreditation may limit mobility across institutions. Students who prioritize transferability and long-term options should explore accredited online universities, as these institutions typically hold regional accreditation that carries broader recognition.
• Tuition and Financial Aid: For-profit colleges generally charge higher tuition and provide fewer institutional scholarships, increasing reliance on federal loans.
• Undergraduate Graduation Rates: Graduation rates vary widely among for-profits, and students should compare these figures with nonprofit alternatives to gauge potential academic outcomes.
• Job Placement Outcomes: Employment success differs by institution and program; students should examine industry alignment, certification preparation, and alumni career trajectories.
• Comparison with Nonprofit Alternatives: Community colleges and state universities may offer similar programs at lower cost, providing better long-term value.

What Graduates Have to Say About Their For-Profit College Experience 

Other Things You Should Know About For-Profit Colleges

Do for-profit colleges have open admissions policies?

Many for-profit colleges use open admissions policies, making them accessible to a wide range of students with varied academic backgrounds. While this increases opportunities, it can also mean less selectivity compared to nonprofit institutions.

Is online learning at for-profit schools effective?

Online learning at for-profit schools can be effective, especially for working adults who need flexibility and career-focused training. However, outcomes depend on program quality, accreditation, and student engagement.

Which industries most value training from for-profit schools?

Industries such as healthcare, information technology, business, and skilled trades often value training from for-profit schools. These programs typically emphasize practical, job-ready skills aligned with industry demands.

What questions should you ask before enrolling in a for-profit college?

Prospective students should ask about accreditation, graduation rates, job placement statistics, and total program costs. Comparing these factors with nonprofit alternatives helps ensure the investment aligns with long-term goals.