10 Facts About For-Profit Online Education

Picking the Right Program

Prospective online students might encounter two types of programs as they search for the right fit: nonprofit and for-profit. While differences exist between the two, experts say the lines are starting to blur, especially when it comes to quality.

Here are 10 things to know about for-profit online degree programs.

1. Quality varies among for-profits.

For-profit options became more prevalent in the late 1990s, experts say, and have in recent years continued to face criticism for low graduation rates and questionable recruitment practices. That’s contributed to their negative reputation, even though for-profits today range in quality, experts say.

“I think it’s less about the sector and more on how attentive the institution is to meeting the needs of students,” Karen Pedersen, chief knowledge officer for the Online Learning Consortium, an organization aiming to improve online higher education, told U.S. News.

2. Employer perceptions also vary.

While there’s still a stigma around for-profit online programs among employers, that negative perception is starting to shift, and not all today are hesitant, Amy Glaser, senior vice president of the employment agency Adecco Staffing, told U.S. News last year.

Many recruiters say that the for-profit versus nonprofit classification tells them little about overall quality. Still, says Glaser, employers deciding between two candidates are more likely to choose the one that earned a degree from a nonprofit institution.

3. Many now focus more on student success.

Though quality of support services varies among for-profit institutions, many have started focusing more on student success rather than strictly attracting applicants, Pedersen says.

For instance, to ensure that students are prepared for college, the for-profit American Public University System started requiring some undergraduate applicants to complete an assessment.

4. They are often less selective than nonprofits.

Admissions at for-profits are generally less selective than at nonprofits, says Mia Ellis, assistant director of admission services at Pennsylvania State University–World Campus, who has also worked at for-profit schools.

Among for-profits, those who meet specific requirements are typically admitted, experts say. But nonprofits tend to admit fewer — though Ellis says online programs are generally less competitive than their on-campus counterparts.

5. Some have close connections with companies.

Because they are often designed mainly for working adults, many for-profit online degree programs partner with companies to help shape the curriculum and find alumni jobs. The University of Phoenix, for instance, collaborates with employers to determine what industry-specific skills to teach, with many online students aiming to change careers.

“Institutions are being held accountable for the employment of their students after they graduate in ways they weren’t previously,” Kevin Kinser, who heads the education policy studies department at Penn State, told U.S. News in 2016.

6. They are more often nationally than regionally accredited.

Accreditation is a process conducted by an outside authority to verify a school and degree program meet certain standards of quality.

Some major for-profit online schools are regionally accredited, but for-profits are more likely to have national accreditation, Kinser says. Regional accreditation is usually preferred by employers and by other universities if a student transfers credits.

7. Many of their academic calendars don’t have semesters.

For-profit programs are more likely than nonprofits to have rolling admissions and academic calendars that don’t operate around the standard semester schedule. Still, this flexible, nontraditional format is starting to catch on at some nonprofits, too.

While North Carolina State University–Raleigh has a semester system for online courses, for example, the for-profit Capella University offers a quarterly option.

8. They are usually more expensive than public universities.

For-profit programs on average charged full-time students $16,000 for the 2016-2017 school year, according to College Board data, which doesn’t differentiate between on-campus and online programs. That’s lower than the average tuition for private colleges but higher than for public universities, both in state and out of state, the data show.

Prospective students, however, should research the actual total cost of an online program. That includes understanding whether there are any technology fees or required payments for course materials such as textbooks, for instance.

9. They are less likely to help students build local job connections.

Kinser, from Penn State, says for-profits may be less likely to provide students with the local career connections they might receive through nonprofit online programs with established reputations in specific regions. Many of today’s online students select programs based close to home for access to resources, he says.

“Public and private nonprofits tend to be very focused in a particular community and have long histories in that community,” he says.

10. Plenty of information about them is available online.

Experts say it’s important to thoroughly vet a for-profit online program before enrolling, particularly given the variability within the sector. Look at the true total cost of the program, its degree offerings and accreditation.

Tami Smith, an online bachelor’s student at Colorado State University–Global Campus, transferred out of a for-profit program because of what she says was a lack of student support. When choosing a new program, she read student reviews online and searched the internet for other helpful information.

More About Online Education

Discover more tips about how to choose an online degree program on the Online Learning Lessons blog, and get our complete rankings of the Best Online Programs.

For more advice on navigating online program admissions, connect with U.S. News Education on Twitter and Facebook.

More from U.S. News

Decide Between Nonprofit, For-Profit Online Degree Programs

4 Questions to Ask Before Enrolling in a For-Profit Online Program

Study: Enrollment in Online Learning Up, Except at For-Profits

10 Facts About For-Profit Online Education originally appeared on usnews.com

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