Difference Between Public & Private University: Tips on Which One to Choose for 2025

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

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The university that one attends can have a huge impact on a student’s life upon graduation — from the network one is able to build to the employment opportunities made available to them. As such, it is important to take a few factors into consideration before choosing a university in the United States. For instance, university statistics show that the most significant criteria that students take a look at are curriculum, reputation, and the perceived ability of a university to boost career opportunities (Open Access Government, 2018). These aside, students must also choose between attending a public or private university.

Foremost, it is important to define what is a public university and what is a private university. After all, it is important that students are aware of the defining characteristics of these institutions and how well these may fit into their learning journey. Whether a university is private or public dictates not only the cost but also the learning environment and student outcomes.

So, to help you determine which option is right for you, this guide will outline the key differences between public vs private university. Some tips on choosing a university are also provided. In this way, you can make an informed decision when you choose between private vs public college.

Affordable Online Degree Programs with Low Tuition Fees

Both public and private universities offer a wide range of degrees that can pave the way for career opportunities. Though some can cost more than others, there are degrees that serve as an affordable way to attain the knowledge and skills necessary to jumpstart different careers through grants, partnership programs, and online delivery. These degrees are available in both public and private universities. Here are some of the most accessible to students with various financial backgrounds:

1. Applied Psychology

A degree in applied psychology covers subjects like counseling psychology, industrial-organizational psychology, and health psychology. Projects often involve case studies, research, and practical applications of psychological theories. Graduates develop counseling skills, research proficiency, and the ability to apply psychological principles in various settings. Popular career paths include clinical or counseling psychologists, human resources specialists, health educators, forensic psychologists, and research analysts.

2. Management

A management degree provides discussions in leadership and organizational skills for diverse business settings. The curriculum includes subjects like organizational behavior, team dynamics and motivation, and human resource management. It ensures that students gain skills in strategic thinking and leadership. Graduates can pursue roles as business managers, HR leaders, or management consultants. The degree also ensures entry into entrepreneurship, project management, or supply chain management.

3. Nursing

A degree in nursing prepares individuals for careers in healthcare, covering a range of subject areas in the curriculum. Common subjects include nursing fundamentals, pharmacology, and mental health nursing. Requirements often involve clinical rotations, patient care simulations, and research projects. Graduates develop clinical skills, critical thinking abilities, and ethical decision-making. Common career paths for nursing graduates include roles as registered nurses (RNs), nurse practitioners, and nurse administrators.

4. Early Childhood Education

A degree in early childhood education covers subjects like child development, curriculum design, and literacy and language development. Projects involve creating lesson plans, designing educational materials, and participating in practical teaching experiences. Graduates develop teaching skills and an understanding of child development principles, preparing them to create nurturing learning environments. Career paths include roles as preschool or kindergarten teachers, childcare center directors, and curriculum specialists.

5. Marketing

A marketing degree focuses on promoting products or services. Common subjects include market research, consumer behavior, and advertising. It aims to enable individuals to understand what consumers want and how businesses can respond to these needs. It also ensures that students can target and communicate with consumers through various channels. Graduates can become marketing managers, advertising executives, or digital marketing specialists.

Public vs. Private Universities Table of Contents

1. Defining Public and Private Universities
2. Which University Better Supports Your Graduate and Research Ambitions?
3. What Are the Graduate and Doctoral Opportunities at Public vs. Private Universities?
4. What Are the Post-Graduation Career Prospects at Public vs Private Universities?
5. What is the Return on Investment from Public vs Private Universities?
6. Differences between Public and Private Universities
7. Tips for Choosing Between Public and Private Universities
8. Why is Accreditation Important When Choosing a University?
9. How Can University Programs Equip You for a Remote Work Future?
10. What Financial Aid and Scholarship Opportunities Distinguish These Institutions?

Defining Public and Private Universities

Public and private universities are institutions of higher education with one main difference—their source of funds.

In discussing public university definition, the main distinction is that public universities have their tuition and fees subsidized by local, state, and federal governments, leaving only a portion to pay for students. Private universities, on the other hand, are institutions that rely on student tuition and fees, endowments, research grants, and alumni contributions. A public university typically has larger student bodies and wider campus sizes than private universities. Private university definition often highlights superiority in terms of prestige and student-to-teacher ratio.

As of 2021, the 3,700 four-year degree-granting institutions in the United States comprise 730 public schools, 1,300 private nonprofit institutions, and 300 private for-profit schools (NCES, 2021).

Which University Better Supports Your Graduate and Research Ambitions?

When evaluating advanced academic and research opportunities, consider factors such as the availability of research grants, specialized faculty mentorship, and dedicated funding for postgraduate projects. Private universities often emphasize targeted research programs and offer competitive fellowships, while public institutions may provide access to large-scale, government-sponsored research initiatives and interdisciplinary collaborations. Assess each university’s research infrastructure and graduate support services to ensure alignment with your career objectives, including pathways that may lead to programs like the easiest PhD to get.

What Are the Graduate and Doctoral Opportunities at Public vs. Private Universities?

Evaluating graduate education paths can provide additional clarity when choosing between public and private institutions. In many cases, differences in funding models and institutional strategies lead to variations in the availability, structure, and support for master’s and doctoral programs. Some universities offer accelerated doctoral pathways with innovative online components and interdisciplinary research initiatives, which may better align with specific career trajectories. Prospective students are advised to compare program requirements, mentorship quality, and research funding opportunities. For insight into efficient program options, consult our list of doctorate degrees.

What Are the Post-Graduation Career Prospects at Public vs Private Universities?

Analyzing career outcomes helps quantify the impact of university choice on long-term employment and salary growth. Recent data indicate that both public and private institutions offer distinct advantages through alumni career trajectories and employer partnerships. Many private universities provide dedicated career centers and personalized recruitment programs, while public universities benefit from diverse large-network connections that can lead to varied industry opportunities. Prospective students should consider industry-specific employment statistics, starting salaries, and the overall return on investment when comparing institutions. Integrating specialized certificates online with conventional degree programs can further enhance market readiness and professional credentials.

What is the Return on Investment from Public vs Private Universities?

Evaluating the long-term financial benefits is essential when choosing between public and private institutions. Analyze not only the upfront tuition and fees but also subsequent earning potential, alumni networks, and financial aid packages. For instance, a lower initial cost at a public university can be offset by competitive career trajectories, while private universities may offer accelerated career pathways and higher starting salaries. In addition, consider how condensed academic programs such as short degrees that make the most money can reduce time to market entry and improve overall ROI. Assess reliable data on post-graduation outcomes to ensure your educational investment aligns with your long-term financial goals.

Differences between Public and Private Universities

Private and public universities differ in many aspects other than their sources of funding. This section will answer the question “What is the difference between public and private colleges?" in 10 points.

1. Tuition Cost

Cost of attendance is one of the most obvious differences between private university vs public university. In the academic year 2020-2021, the average college tuition and fees for public four-year in-state universities is only $10,560 (Ma, Pender, & Libassi, 2020). Since universities receive funding directly from state governments, postsecondary education at out-of-state universities costs almost thrice in in-state counterpart at $27,020 (Ma, Pender, & Libassi, 2020). Still, students of private non-profit universities need to pay the highest, averaging $37,650 per student (Ma, Pender, & Libassi, 2020). The percentage change of tuition and fees between academic years 2019-2020 and 2020-2021 is also the highest for non-profit universities at 2.1% (Ma, Pender, & Libassi, 2020). Given these numbers, you may ask yourself, “Is private university worth it?" The answer to that is, yes, it still is for most people. This will be discussed shortly.

In total, public four-year in-state students only pay an average of $12,850, including room and board, while private nonprofit students need to pay around $50,770 (Ma, Pender, & Libassi, 2020). This huge gap in tuition cost can be difficult to overlook for many budget-conscious students, considering the average time to repay student loans.

Note, however, that when financial aid is taken into consideration, the difference between the cost of education in public and private universities is lessened. This is because students at private nonprofit degree-granting institutions actually receive the most financial aid (National Center for Education Statistics, 2021). They are also offered huge tuition discounts. A report by the National Association of College and University Business Officers revealed that private university students receive an average of 44.8% tuition discount (Valbrun, 2018).

2. Reputation and Prestige

Some construe that what students pay for at private universities is prestige. After all, many private universities in the United States have established their reputation academically and have been consistently top in the rankings. So, there is no doubt that what they offer is quality education. It is also for this reason that they receive a large volume of applications.

According to the article “University brand image as competitive advantage: a two-country study," published in the International Journal of Educational Management, “the reputation of a university plays an important role in the decision-making among students. Everything else remaining the same, a student would like to join a university with a better reputation. This is in line with existing research which says that a highly-reputed university draws plenty of advantages—a better choice of faculty and students, more endowment from alumnus and industry support, which contributes to the brand image of the school" (Panda, Pandey, Bennett, Tian, 2019).

One common thing about prestigious universities is they are harder to get into than the average ones (Hess, 2019). The most prestigious ones accept only less than 10% of their applicants (Hess, 2019).

As shown in the table below, 18% of private nonprofit degree-granting institutions accept only less than 50% of the applications they receive (NCES, 2019). Meanwhile, only 10% of public universities and 14% of all degree-granting institutions in America have set the same standards (NCES, 2019).

Universities are much more lenient in two-year degree programs, with 92% having open admissions or no application criteria (NCES, 2019). If you are wondering about graduate school and are asking, “Is it hard to get into grad school?", then the answer is yes. That is another story altogether.

3. Student-to-Teacher Ratio

The National Center for Education Statistics (NCES) reports that in Fall 2018 the average full-time student to full-time faculty ratio is 14:1. The ratio was highest at private-for-profit institutions at 22:1 and lowest at private nonprofit four-year institutions at 10:1 (NCES, 2020). Meanwhile, public two-year institutions have a student-to-teacher ratio of 18:1 and public four-year institutions, 14:1 (NCES, 2020).

A lower student-to-teacher ratio comes with the benefit of more focused, individualized instruction, which is ideal for mastery learning. Teachers can afford to have more time for one-on-one consultations with their students.

Private universities often offer smaller class sizes to students because their overall student population is also lower. The downside to this is they also tend to offer fewer courses and degree programs than public universities.

4. Culture and Demographics

Students are more drawn to in-state rather than out-of-state public universities due to the price difference that amounts to $16,460 on average. Because of this, public universities tend to have students with similar geographic backgrounds.

Students in private universities are more geographically diverse. However, they are not necessarily more diverse in other demographic areas, such as race, ethnicity, sex, gender, and socioeconomic status.

Undergraduate Student Population in America by Race/Ethnicity

In the academic year 2017-2018, the race/ethnicity of the undergraduate student population in America is predominantly white (63.2%) (NCES, 2019). The second-largest percentage consists of Hispanic students (14.2%), followed by Black (10.4%) (NCES, 2019). The remaining populations are Asian/Pacific Islanders (8.0%) and American Indian/Alaska Natives (0.5%) (NCES, 2019). There is also a very small percentage that consists of students of two or more races (3.7%) (NCES, 2019).

Undergraduate Student Population in America by Sex

In Fall 2019, female students made up 57% of total undergraduate enrollment in degree-granting postsecondary institutions (NCES, 2021). The remaining 43% or 7.1 million students are male (NCES, 2021).

5. Social Life

Campus life is quieter in private universities compared to public ones. The latter is known for its thriving party scene. There is also a greater number of students one can choose to be friends with and a wider option of student clubs to join.

Students in private universities tend to be more scholarly and focus on their studies. However, they also tend to live on campus and can form close social ties with their roommates and classmates. There are also social gatherings, although they are not as big and as often.

6. Networking Opportunities

Students, whether from public or private universities, are advised to put in the effort to build their professional network as early as their undergraduate years. There is not much difference in networking opportunities between these two types of institutions given today’s equalizing factor: social media. Career networking can prove to be very helpful later on in achieving professional success. In fact, according to Hubspot, 85% of job posts are filled through networking (Frost, 2017).

7. Learning Environment

Why is Accreditation Important When Choosing a University?

Accreditation validates that an institution meets rigorous quality standards and prepares students for professional success. It serves as an objective measure of academic excellence, ensuring that the curriculum, faculty credentials, and support resources align with industry and governmental benchmarks. Accredited universities also facilitate the transfer of credits, eligibility for federal financial aid, and recognition by employers. Evaluating accreditation status can prevent investment in programs that fail to meet educational norms, thereby protecting your academic and career interests. For example, institutions offering the best online accelerated bachelor's degree typically maintain high standards of curriculum design and institutional governance.

Role of Internships and Work-Study Programs in Choosing Between Public and Private Universities

Internships and work-study programs can greatly influence a student's decision when selecting a public or private university. These opportunities provide hands-on experience, help students build professional networks, and enhance career readiness.

• Internships at public universities: Public institutions often have more partnerships with local industries and government agencies, providing students with diverse internship opportunities that align with their academic fields.
• Private university internships: Private universities may offer more personalized internship placement services, leveraging their smaller student-to-faculty ratios and alumni networks for tailored opportunities in prestigious companies.
• Work-study programs: Both types of universities offer work-study programs, but public universities may provide more options due to their larger campus size and student population. These programs allow students to gain experience while earning money for tuition and living expenses.
• Alumni connections: Private universities often have a stronger alumni network that can offer exclusive internships and job placements, making them a valuable resource for career advancement.

Tips for Choosing Between Public and Private Universities

1. Consider the overall cost of your education. If you are planning to go to a public university, it would be wise to get into one in your state as it would significantly lessen the cost you need to finish your studies. If you are thinking of applying for admission into a private university, be sure to inquire about the discounts they are offering and the available financial aid.
2. Calculate the potential return on investments. Think of choosing a university as choosing which institution you want to invest in. You can look at the successes at failures of the alumni in your prospects. You can also check on their mission and vision statements and see which resonates with you personally, that is, which you would want to be bet your future on.
3. Look at the top universities in the degree program you are planning to take. Check the reputation of these universities. Imagine how the name of the school in your curriculum vitae would reflect on you as you apply for career positions in your target field.
4. Think about which learning environment will make you thrive. At the end of the day, it is you and your learning outcomes that matter. If you are an independent learner, a public university will give you the independence to work on yourself. Athletes and researchers are also given more opportunities in a public university. If you value reputation more, like employers usually do, a private university may be the right fit for you.

How Can University Programs Equip You for a Remote Work Future?

University programs are increasingly integrating flexible delivery methods and digital collaboration tools to build essential competencies for a modern, remote work environment. These initiatives emphasize technology literacy, virtual teamwork, and self-management through online simulations and digital projects. Such curricular enhancements ensure that students not only develop academic proficiency but also gain practical skills to thrive in evolving work contexts. For additional insights on preparing for flexible career options, consider exploring degrees for remote work.

What Financial Aid and Scholarship Opportunities Distinguish These Institutions?

Both public and private universities offer varied financial support that can significantly impact your overall investment in higher education. Public institutions often provide state-funded grants and need-based aid that lower upfront costs, whereas private universities tend to emphasize merit-based awards and tailored scholarship programs. Evaluating these options—including federal aid, institutional grants, and specialized funding for online learners—can help bridge the gap between sticker price and net cost. For those seeking cost-effective alternatives, compare programs such as an inexpensive bachelor's degree online to determine which financial aid strategies best align with your academic and career objectives.

Invest in the Right University

Now that you know what is the difference between a private and public university, you might be wondering, “is it better to go to a public or private university?" Truth be told, one option is not better than the other. The answer to this question will greatly depend on your preferences, which range from the type of curriculum you prefer, your budget, as well as the type of learning environment you will thrive in.

This article outlined 10 differences, namely (1) tuition cost, (2) reputation and prestige, (3) student-to-teacher ratio, (4) culture and demographics, (5) social life, (6) networking opportunities, (7) learning environment, (8) research opportunities, (9) extracurriculars, and (10) student outcomes. Hopefully, the examination of these aspects of education gave you clarity on which would be best for your personal and professional growth.

Should you want more information on this topic, looking into university statistics and online education statistics will also prove valuable to you at this point. You can also check out the differences between schools, colleges, and universities to further expand your options.

Key Insights

• Definition and Funding: Public universities are primarily funded by state and local governments, leading to lower tuition for in-state students. Private universities rely on tuition, endowments, and donations, often resulting in higher costs.
• Cost of Attendance: Public universities generally offer lower tuition rates, especially for in-state students, while private universities tend to be more expensive. However, private universities often provide significant financial aid and tuition discounts.
• Reputation and Prestige: Private universities often boast higher prestige and rank higher in national and international rankings due to their established reputations and selective admission processes.
• Student-to-Teacher Ratio: Private universities typically have lower student-to-teacher ratios, allowing for more personalized attention and smaller class sizes compared to public universities.
• Demographics: Public universities often have a more homogenous student body geographically, while private universities attract a more geographically diverse student population.
• Social Life: Public universities tend to have a more vibrant social scene with larger student bodies and more student organizations, while private universities offer a more intimate, scholarly environment.
• Networking Opportunities: Both public and private universities offer ample networking opportunities, but private universities may provide stronger alumni networks due to their prestige.
• Learning Environment: Private universities often provide more personalized and focused learning environments, while public universities offer a broader range of programs and resources.
• Research Opportunities: Public universities may offer more extensive research opportunities due to their size and funding, while private universities provide more personalized research experiences.
• Extracurriculars and Student Outcomes: Public universities typically offer a wider range of extracurricular activities due to their larger size, while private universities focus on high-impact activities that align with their educational missions.

FAQ

1. What are the main funding sources for public and private universities? Public universities are funded primarily by state and local governments, whereas private universities rely on student tuition, endowments, donations, and research grants.
2. How does the cost of attendance compare between public and private universities? Public universities generally have lower tuition rates, especially for in-state students. Private universities tend to be more expensive, but they often offer substantial financial aid and tuition discounts.
3. Are private universities more prestigious than public universities? Many private universities are known for their high prestige and consistently rank higher in national and international rankings due to their established reputations and selective admission processes.
4. What is the difference in student-to-teacher ratios between public and private universities? Private universities typically have lower student-to-teacher ratios, which allows for more personalized attention and smaller class sizes. Public universities often have larger class sizes and higher ratios.
5. How do the demographics of students differ between public and private universities? Public universities tend to have a more geographically homogenous student body, with many students coming from within the state. Private universities attract a more geographically diverse student population.
6. Is the social life different at public universities compared to private universities? Public universities often have a more vibrant social scene with larger student bodies and more student organizations. Private universities offer a more intimate and scholarly environment.
7. Are networking opportunities better at private or public universities? Both public and private universities offer ample networking opportunities. However, private universities may provide stronger alumni networks due to their prestige and selective admissions.
8. What type of learning environment is offered by public and private universities? Private universities often provide more personalized and focused learning environments, while public universities offer a broader range of programs and resources.
9. Do public universities offer more research opportunities than private universities? Public universities may offer more extensive research opportunities due to their size and funding. Private universities, however, provide more personalized research experiences.
10. How do extracurricular activities and student outcomes differ between public and private universities? Public universities typically offer a wider range of extracurricular activities due to their larger size. Private universities focus on high-impact activities that align with their educational missions. Student outcomes may vary based on the individual programs and resources available at each type of institution.

References:

• Frost, A. (2017). 15 Surprising Stats on Networking and Face-to-Face Communication. Retrieved from https://blog.hubspot.com/sales/face-to-face-networking-stats
• Irwin, V., Zhang, J., Wang, X., Hein, S., Wang, K., Roberts, A., York, C., Barmer, A., Bullock Mann, F., Dilig, R., and Parker, S. (2021). Report on the Condition of Education 2021 (NCES 2021-144). U.S. Department of Education. Washington, DC: National Center for Education Statistics. Retrieved from https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2021144
• National Center for Education Statistics (2020). Characteristics of Postsecondary Faculty. Retrieved from https://nces.ed.gov/programs/coe/indicator/csc
• National Center for Education Statistics (2020). Characteristics of Degree-Granting Postsecondary Institutions. Retrieved from https://nces.ed.gov/programs/coe/indicator/csa
• Open Access Government (2018). New research highlights top factors students consider when choosing a university. Retrieved from https://www.openaccessgovernment.org/research-top-factors-choose-a-university/44278/
• Panda, Pandey, Bennett, & Tian (2019). University brand image as competitive advantage: a two-country study. International Journal of Education Management, 33(2), 234-251. Retrieved from https://doi.org/10.1108/IJEM-12-2017-0374
• U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Winter 201718, Outcome Measures component; and IPEDS Fall 2009, Institutional Characteristics component. Retrieved from https://nces.ed.gov/programs/digest/d18/tables/dt18_326.27.asp
• Valbrun, M. (2018). Tuition Conundrum. Inside Higher Ed. Retrieved from https://www.insidehighered.com/news/2018/04/30/nacubo-report-finds-tuition-discounting-again