By Amy E. Feldman
PHILADELPHIA (CBS) – Considering how much money you’re paying for tuition, it’s hard to believe that any colleges are nonprofit. In fact, the vast majority are. So what is the difference between a for profit college and a nonprofit college and how do you know which one it is?READ MORE: Philadelphia 76ers Award $100,000 Housing Grant To Help Sharswood Neighborhood
It’s not always so easy to tell, when you consider that Arizona State is a nonprofit institution, but University of Phoenix is for profit.READ MORE: Man Killed, 16-Year-Old Boy Shot In Head Near Lincoln High School, Philadelphia Police Say
For profit colleges have been on the rise since 1992 when Congress changed funding requirements so that for profit institutions could be eligible for federal funding including student loans and federal grants. Both use dot-edu. And both types must meet state accreditation requirements.
But, they’re organized differently; a for profit college like any corporation is primarily to make money for the shareholders, and not for the benefit of the students so the graduation rate is often much lower; the Boston Globe has reported it’s around 28% of those who’ve paid tuition.MORE NEWS: Wiretap Recordings Surrounding Philadelphia's Soda Tax Headline Testimony In John Dougherty, Bobby Henon Bribery Trial
Before plunking down your big fat tuition payment anywhere, ask: what are your graduation rates? What’s the job placement rate? Who accepts transfer credits? And then you can ask: do you have a Frisbee team?