As you research options for post-secondary education, a common distinction you’ll likely come across is schools identifying themselves as “private” or “public.” While both types of institutions provide valuable educational opportunities, some key differences exist, including cost of attendance, available financial aid, enrollment, and program offerings.
This article will explore the differences and similarities between the two types of schools. We’ll also provide guidance to help you determine which type of institution will best fit your needs.
Differences Between Private and Public Colleges
Funding sources
The key difference distinguishing private colleges from public colleges is how the institution obtains its funding.
Public universities and colleges receive money from state and federal governments to help them operate, in addition to revenue from tuition, investments, endowments, and donations. Private institutions don’t receive any money from the government. All revenue at private colleges and universities comes solely from tuition, investments, endowments, and donations.
Most private schools operate independently, while public colleges and universities tend to be part of a state system of higher education with multiple campuses. For example, there are two state university systems in California: the University of California (UC) system, which operates ten campuses, and the California State University (CSU) system, which operates 23 campuses.
Cost of attendance
Because public institutions use taxpayer dollars to fund their operations, they offer subsidized tuition rates to residents of the state where the school is located. Most public institutions have separate tuition rates for in-state and out-of-state students. This discounted tuition supports the missions of public higher education systems, helping to make education accessible for residents.
In the absence of government funding, private colleges typically charge higher tuition rates, as they rely more heavily on tuition as a revenue source. They also charge all students the same tuition rates, regardless of their residency.
Financial aid
As long as they are accredited, both public and private schools offer financial aid, including federal student loans, grants, scholarships, work-study, assistantships, and fellowships.
However, because they have a higher sticker price, private institutions tend to offer more generous financial aid packages to help students afford the cost of attendance. Because tuition is usually lower at public colleges and universities, particularly for in-state students, these institutions may offer smaller financial aid packages or only offer financial aid to students with the highest demonstrated financial need.
Program offerings
Most public colleges and universities offer a wide variety of degree, diploma, and certificate programs, as they are designed to serve a diverse student population. While exact program offerings vary by school, students can expect to find a mixture of liberal arts, STEM, business, education, and visual and performing arts programs at most public schools. These types of institutions are also more likely to offer associate degree programs through public community colleges.
Private institution program offerings can range from very diverse to very niche. Many large private institutions, such as New York University, Boston University, and Northwestern University, offer a broad range of programs, while others focus on a specific cluster of subjects. For example, the Massachusetts Institute of Technology (MIT) focuses on STEM majors, while the Rhode Island School of Design (RISD) emphasizes visual art and design education.
Research opportunities
With the exception of private institutions that focus on research, like Johns Hopkins University or Stanford University, students can typically find more research opportunities at public universities, which receive government funding to support research activity.
For example, 107 out of the 146 post-secondary schools that are designated as having “very high research activity” by the Carnegie Classification of Institutions of Higher Education are public universities. Some of the most well-known public research institutions in the U.S. include the University of Michigan, Ohio State University, and Florida International University.
Student population and demographics
Although public and private schools can both range in size and student demographics, public colleges and universities tend to have a larger, more diverse student population as they are designed to make education accessible to a wider population. For example, Arizona State University enrolls over 80,000 students, while Texas A&M University, College Station, has nearly 75,000 students.
Due to their higher price tags, more selective admissions processes, and more limited program offerings, private colleges and universities tend to have smaller, less diverse student bodies than their public counterparts. The nation’s largest private institution, New York University, has a population of around 59,000.
Private online-only institutions are the exception, with schools like Western Governors University enrolling over 100,000 students due to its distance-learning model.
Religious affiliation
All post-secondary institutions in the U.S. that are operated by or affiliated with a religious order, such as Catholic University, Baylor University, and Liberty University, are private, to adhere to regulations around the separation of church and state. Public universities and colleges are not currently allowed to have a religious affiliation, although many offer religious organizations and services on their campuses to accommodate students of all faiths.
Public Versus Private Universities At-A-Glance
| Public | Private | |
| Funding sources | Receives funding from state and federal government, in addition to tuition, donations, endowments, and investments | No funding from the state or federal government; all revenue comes from tuition, donations, endowments, and investments |
| Cost of attendance | Focus on affordability, with separate tuition rates for in-state and out-of-state students | Tuition tends to be more expensive, with all students charged the same tuition rate, regardless of residency |
| Financial aid | Available, although financial aid packages may be limited or only available for students with the highest demonstrated financial need | Available, with generous financial aid packages to offset higher sticker price |
| Program offerings | A wide variety of areas of study covering many subjects, such as business, STEM, education, nursing and healthcare, liberal arts, and more | May offer a wide variety of areas of study, or focus on a particular niche subject area, such as STEM, liberal arts, or business |
| Research opportunities | Widely available | Limited availability |
| Student population and demographics | A larger, more diverse student population | Smaller, less diverse student population |
| Religious affiliation | None | It may be affiliated with a religious order or denomination |
Similarities Between Private and Public Colleges
Quality
One key element that both private and public institutions share is that high-quality degree programs can be found at both types of schools. Rankings of the best colleges and universities typically include a mixture of public and private institutions, highlighting the quality of education students can receive regardless of which kind of school they attend.
Public and private schools offer degree programs with strong curriculums, expert faculty, essential academic support services, and valuable internship and networking opportunities. While some private institutions, particularly those in the Ivy League, may have more name recognition and be considered more prestigious, many public institutions are equally well-regarded, such as the University of California – Berkeley, Penn State University, and University of North Carolina at Chapel Hill.
Accreditation
A notable indicator of the quality of a post-secondary institution is its accreditation status. Schools accredited, particularly by a regional accrediting agency, must meet high standards for academic quality and student outcomes.
Both public and private colleges and universities can be accredited. In addition to being an indicator of quality, a school’s accreditation status is important for students because it can affect their eligibility for financial aid, future educational opportunities, and employment. Regardless of whether you choose to attend a public or private school, always confirm the institution’s accreditation status through a third-party database such as the Council for Higher Education Accreditation or the Department of Education.
Online programs
Another commonality between private and public schools is that most currently offer online degree programs.
Some private institutions, such as Western Governors University, operate entirely online, with no physical campus location. Meanwhile, many public colleges and universities have an online division in addition to their brick-and-mortar campuses. Some notable public universities with popular online programs include the University of Arizona Online and the University of Maryland – Global Campus.
Non-profit versus for-profit status
In addition to being public or private, all post-secondary institutions have a non-profit or for-profit status.
Non-profit status means that a school’s revenue must be reinvested in the institution through infrastructure, operations, faculty and staff salaries, student services, and more. For-profit schools operate more like businesses, with the primary mission of turning a profit to benefit shareholders, and fewer regulations on how revenue is spent.
Because of their government affiliation, all public universities and colleges are non-profit. Private institutions can be non-profit or for-profit. Students considering a private college or university should confirm whether the school is non-profit or for-profit, as this can impact the quality of education they receive and whether they are eligible for financial aid.
What to Consider When Choosing a Private versus Public University
Area of study
The type of major or degree program you’re seeking can significantly impact the type of school you select. For example, if you are interested in engineering, you may want to consider a public university with a strong engineering program, like Georgia Tech, or a private STEM-focused school like the California Institute of Technology (CalTech).
Students who want to explore multiple areas of study before selecting a major may find that a public college or university is ideal, as these institutions offer a broader range of programs and courses. Attending an in-state public school can also save students money as they explore their options, as they will likely pay less in tuition than they would at a private school.
Educational needs and goals
Clarifying your specific educational needs and goals can also help you find the type of institution that will best support you.
For example, if you need a lot of one-on-one support for instructors and advisors, a small private college may be a good option, as these types of institutions provide more individualized attention, smaller class sizes, and more opportunities for interaction with faculty and classmates.
Meanwhile, if you seek opportunities for research, athletic programs, or a college close to home, a public university or college can likely meet those needs.
Budget and financial aid
As noted, costs can vary widely between public and private institutions. In the early stages of your research, it’s helpful to establish a budget for your education, including how much you and your family can afford to pay out of pocket, and how much financial aid you will need, including student loans, scholarships, grants, and other assistance. This will help you identify public and private schools in your price range.
It’s important to remember that, although an in-state public institution may have a lower sticker price for tuition, you may end up paying less at a private school because they may be able to provide a more generous financial aid package. In most cases, it’s worth exploring both options and comparing financial aid awards and out-of-pocket costs before determining which school is the best option for you.
Campus environment and experience
The type of college experience you want to have will also influence the type of college or university you select.
Students who want a traditional college experience with a large campus, popular athletic activities, Greek life, and a diverse student population may be drawn to public universities like Florida State University or the University of Wisconsin. If you’re seeking a small, tight-knit, arts-focused college experience, private liberal arts schools like Oberlin College or Sarah Lawrence College may be a better fit. It’s also helpful to consider whether you want to attend college in a rural, suburban, or urban area.
Even though they won’t be attending classes in person, online students should also consider what type of experience they want. Some online programs mimic the traditional college experience, with small virtual classes that allow students to interact with each other and faculty, while others educate thousands of students around the world with large, asynchronous courses.
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