When selecting the best type of college to apply to, you might hear phrases such as “Title IV” used. But what does this mean, exactly? For starters, Title IV institutions are colleges and universities open to individuals who qualify for financial aid. This includes Federal Work-Study programs, student loans, and financial aid.
Of these institutions, some are private and some are public. Before choosing the best school for your — or your child’s — needs, it’s important to understand a bit more about these options.
According to data from the 2020-2021 academic year, there were a total of 5,916 Title IV institutions in the US. 1,892 of these schools were public, and 1,754 were private, nonprofit institutions. 2,270 were private, for-profit schools.
But what’s the cost difference between private and public institutions? Does tuition depend on in-state or out-of-state residency? The answer might dictate where you apply, but this article explains everything in depth.
Public vs Private School: What Sets Colleges Apart?
When selecting the best college or university for your needs, it’s important to factor in items such as areas of study, looking for institutions that excel in the program you’re looking to join. However, cost can’t be factored out. This is where the decision to choose between private or public colleges comes into play.
For starters, public colleges are funded by the government. This means the government works to subsidize the cost of college for anyone in attendance. Students are offered financial aid and the institution may receive government assistance such as research and development and/or institutional support.
Private schools, however, focus more so on tuition and endowments. This usually means private schools are more expensive, but they may also have a larger, more generous financial aid package.
It’s also worth noting that public institutions may offer more study programs to choose from, and campus life varies among the two.
Average Cost of Private Institutions
When considering the average cost of attending a private or public college, keep in mind that tuition and fees are two separate costs students have to pay. However, it’s common for educational institutions to report the two as one number.
You may want to attend a private college that’s nonprofit. When attending a private college or university, you can expect to pay an average of $41,540 annually. This number is based on the 2023-2024 academic year.
If you’re an undergraduate student, you’re considered full-time if you take at least 12 credits a semester. Your school should have a comprehensive breakdown of what you’ll pay per semester, but they may inform you of what classes cost per credit. You can use this information to determine what your tuition will cost annually.
You also have to consider fees. Although these fees are different from one school to the next, they typically include room and board, transportation to and from campus, and any supplies or books you’ll need. You may also have to pay a fee for certain laboratory classes.
Average Cost of Public Institutions
Public institutions are usually non-profit whereas for-profit colleges are usually private. Although public institutions are less expensive than private ones, it’s important to understand exactly where your money is going regardless of the type of school you attend. Tuition, for example, is the amount of money you pay for classes.
When attending a public institution, you can expect to pay an average of $11,260 for in-state students and $29,150 for out-of-state students.
But why do out-of-state students pay more? The answer is simple: taxes. Non-residents haven’t paid into the state’s taxes. These tax dollars are used to subsidize the cost of public colleges, keeping costs down. So students who come from out-of-state are subject to higher tuition.
Pros and Cons of Private School
When choosing the school you wish to attend, it’s important to make a pros and cons list. One of the largest considerations is cost. Luckily, private colleges are known to offer larger financial aid packages. Yes, the overall tuition is expensive, but they work to assist all students who wish to attend.
You’ll also benefit from a variety of scholarship programs, grants, and Federal Work-Study programs. Private colleges are more likely to offer Federal Work-Study programs than public colleges, especially community colleges.
If you or your family don’t qualify for financial aid but you still require assistance, then the high price tag of a private institution can be overwhelming.
In addition to price, you may find that private schools have restricted majors to choose from. This means that you need to investigate the area of study you’re most interested in, ensuring your school offers this as a major. You may also find a lack of diversity at private schools.
Pros and Cons of Public School
Just like private schools have pros and cons, so do public schools. For starters, you’ll typically encounter lower tuition when attending a public educational institution. This is ideal for students who may not qualify for financial aid but still need to take out student loans.
If you’re looking for a diverse college experience, then public schools offer this. You’ll interact with students from various backgrounds, learning about varied perspectives of different cultures across the world.
You may also find that public schools have a wider array of programs to choose from, ensuring your interests are met when working to obtain career goals. Additionally, it’s common for public schools to have more resources, from larger campuses to libraries with an extensive amount of information. The same holds true for athletic complexes available.
Unfortunately, you may also find that public schools feature larger class sizes and less interaction with professors. You may also find that out-of-state students have fewer financial aid options available to them, as these funds are often reserved for residents.
Another con worth considering is the challenges with administration. The larger the school, the less individual assistance each student will receive. This means that students — and their families — might be responsible for navigating complex educational systems with little help.
Pros and Cons of Private School
One of the main differences between private and public colleges is tuition. Although private colleges and universities tend to be more expensive than public educational institutions, they usually offer more comprehensive financial aid packages.
If you’re considering a public school as an out-of-state student, you can expect to pay more. However, you may find that public institutions offer more programs to study. You’ll also benefit from smaller class sizes at private schools but more diversity at larger ones.
Speak with your family about the pros and cons of each, and don’t hesitate to contact a professional for guidance and assistance when applying to college. College Funding Professionals has all the resources you need, so reach out to us today at 201-285-7890 or email us at INFO@CollegeFunding.com. Join our free online Facebook Group to gain access to the best college planning advice anywhere.
