The Difference between For Profit and Non Profit Schools Essay

Submitted By tinkish
Words: 951
Pages: 4

The difference between for profit and nonprofit schools is that nonprofit schools receive their capital through wealthy alumni and donations but for profit schools are invested in and receive their capital from selling shares and enrolling students. This means that unlike nonprofit schools where the main worry of the facility is the service it provides since it directly correlates with the amount of capital it will receive, for profit schools have the additional matter of selling share, receiving invests, and having an increasing number of enrolling students. This added matter creates a massive difference between for profit and nonprofit schools. With the additional occupation for profit schools also have to focus on making sure that it is successful in its business meaning that they are enrolling a high amount of student to make sure the school keeps its capital increasing and growing. The need for this high enrollment rate is because in order for investors to keep investing and for the college’s stocks to be valuable and to sell, they need to enroll increasing number of students since they are the. Another difference is that nonprofit schools have to focus more on maintaining their 501(c)(3) status received from the IRS and appealing to the elite to generate capital and make sure the school is successful. On average a for profit college costs 30,900 annually for its students almost double compared to the annual amount paid by students in a public college of 15,600. In for profit schools the average percent of money used in advertising is between 20 and 25 percent while in educating the students or in other words paying the faculty the average is between 10 and 20 percent. There are 4 main complaints about for profit schools. One of them, as stated in the documentary, is the fast foodinization of education. For profit colleges pay their teachers less and focus more on enrolling as many students as possible. Since the time for completion of for profit schools are usually shorter they receive more revenue rather than if they had a longer time for completion. Also by paying teachers less the colleges are not guaranteeing the best service for its consumers or students. For example fast food restaurants hire teenagers and pay them minimum wage while restaurants hire cooks who are paid substantially. It is obvious from any American’s personal experience which of the latter has the better quality of food Therefore a part of the concern lies in that the schools aren’t hiring the best quality of teachers. So the concern is that for profit colleges are warping education by making it cheap and of low quality, hence the word fast food. Another concern is the value of the education that is being given to the students. For example a student can pay 30,000 dollars for a degree but still cannot find a job because the college she went to wasn’t accredited. The third complaint is the desperate need for increasing enrollees. The concern is that the colleges are undertaking unethical tactics to recruit students. Colleges are telling recruiters to tell “them” whatever they want to hear, to get to their life problems and make them think that enrolling here will solve those problems. Recruiters often take on tactics similar to phone salesperson by the basic fact that they are doing and saying whatever it takes to get this person to enroll in this establishment. Another concern is the massive debt many of the students at for profit schools are attaining. Since the recruiters main concern is recruiting they aren’t paying attention to whether or not the person is actually prepared for college and if the school and the student…