Difference Between Public & Private University: Tips Which One to Choose in 2023

by Imed Bouchrika, Phd
Chief Data Scientist & Head of Content

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The university that one attends can have a huge impact on a student’s life upon graduation — from the network one is able to build to the employment opportunities made available to them. As such, it is important to take a few factors into consideration before choosing a university in the United States. For instance, university statistics show that the most significant criteria that students take a look at are curriculum, reputation, and the perceived ability of a university to boost career opportunities (Open Access Government, 2018). These aside, students must also choose between attending a public or private university.

Foremost, it is important to define what is a public university and what is a private university. After all, it is important that students are aware of the defining characteristics of these institutions and how well these may fit into their learning journey. Whether a university is private or public dictates not only the cost but also the learning environment and student outcomes.

So, to help you determine which option is right for you, this guide will outline the key differences between public vs private university. Some tips on choosing a university are also provided. In this way, you can make an informed decision when you choose between private vs public college.

Public vs. Private Universities Table of Contents

1. Defining Public and Private Universities
2. Differences between Public and Private Universities
3. Tips for Choosing Between Public and Private Universities

Defining Public and Private Universities

Public and private universities are institutions of higher education with one main difference—their source of funds.

In discussing public university definition, the main distinction is that public universities have their tuition and fees subsidized by local, state, and federal governments, leaving only a portion to pay for students. Private universities, on the other hand, are institutions that rely on student tuition and fees, endowments, research grants, and alumni contributions. A public university typically has larger student bodies and wider campus sizes than private universities. Private university definition often highlights superiority in terms of prestige and student-to-teacher ratio.

As of 2021, the 3,700 four-year degree-granting institutions in the United States comprise 730 public schools, 1,300 private nonprofit institutions, and 300 private for-profit schools (NCES, 2021).

Differences between Public and Private Universities

Private and public universities differ in many aspects other than their sources of funding. This section will answer the question “What is the difference between public and private colleges?” in 10 points.

1. Tuition Cost

Cost of attendance is one of the most obvious differences between private university vs public university. In the academic year 2020-2021, the average college tuition and fees for public four-year in-state universities is only $10,560 (Ma, Pender, & Libassi, 2020). Since universities receive funding directly from state governments, postsecondary education at out-of-state universities costs almost thrice in in-state counterpart at $27,020 (Ma, Pender, & Libassi, 2020). Still, students of private non-profit universities need to pay the highest, averaging $37,650 per student (Ma, Pender, & Libassi, 2020). The percentage change of tuition and fees between academic years 2019-2020 and 2020-2021 is also the highest for non-profit universities at 2.1% (Ma, Pender, & Libassi, 2020). Given these numbers, you may ask yourself, “Is private university worth it?” The answer to that is, yes, it still is for most people. This will be discussed shortly.

In total, public four-year in-state students only pay an average of $12,850, including room and board, while private nonprofit students need to pay around $50,770 (Ma, Pender, & Libassi, 2020). This huge gap in tuition cost can be difficult to overlook for many budget-conscious students, considering the average time to repay student loans.

Note, however, that when financial aid is taken into consideration, the difference between the cost of education in public and private universities is lessened. This is because students at private nonprofit degree-granting institutions actually receive the most financial aid (National Center for Education Statistics, 2021). They are also offered huge tuition discounts. A report by the National Association of College and University Business Officers revealed that private university students receive an average of 44.8% tuition discount (Valbrun, 2018).

2. Reputation and Prestige

Some construe that what students pay for at private universities is prestige. After all, many private universities in the United States have established their reputation academically and have been consistently top in the rankings. So, there is no doubt that what they offer is quality education. It is also for this reason that they receive a large volume of applications.

According to the article “University brand image as competitive advantage: a two-country study,” published in the International Journal of Educational Management, “the reputation of a university plays an important role in the decision-making among students. Everything else remaining the same, a student would like to join a university with a better reputation. This is in line with existing research which says that a highly-reputed university draws plenty of advantages—a better choice of faculty and students, more endowment from alumnus and industry support, which contributes to the brand image of the school” (Panda, Pandey, Bennett, Tian, 2019).

One common thing about prestigious universities is they are harder to get into than the average ones (Hess, 2019). The most prestigious ones accept only less than 10% of their applicants (Hess, 2019).

As shown in the table below, 18% of private nonprofit degree-granting institutions accept only less than 50% of the applications they receive (NCES, 2019). Meanwhile, only 10% of public universities and 14% of all degree-granting institutions in America have set the same standards (NCES, 2019).

Universities are much more lenient in two-year degree programs, with 92% having open admissions or no application criteria (NCES, 2019).

3. Student-to-Teacher Ratio

The National Center for Education Statistics (NCES) reports that in Fall 2018 the average full-time student to full-time faculty ratio is 14:1. The ratio was highest at private-for-profit institutions at 22:1 and lowest at private nonprofit four-year institutions at 10:1 (NCES, 2020). Meanwhile, public two-year institutions have a student-to-teacher ratio of 18:1 and public four-year institutions, 14:1 (NCES, 2020).

A lower student-to-teacher ratio comes with the benefit of more focused, individualized instruction, which is ideal for mastery learning. Teachers can afford to have more time for one-on-one consultations with their students.

Private universities often offer smaller class sizes to students because their overall student population is also lower. The downside to this is they also tend to offer fewer courses and degree programs than public universities.

4. Culture and Demographics

Students are more drawn to in-state rather than out-of-state public universities due to the price difference that amounts to $16,460 on average. Because of this, public universities tend to have students with similar geographic backgrounds.

Students in private universities are more geographically diverse. However, they are not necessarily more diverse in other demographic areas, such as race, ethnicity, sex, gender, and socioeconomic status.

Undergraduate Student Population in America by Race/Ethnicity

In the academic year 2017-2018, the race/ethnicity of the undergraduate student population in America is predominantly white (63.2%) (NCES, 2019). The second-largest percentage consists of Hispanic students (14.2%), followed by Black (10.4%) (NCES, 2019). The remaining populations are Asian/Pacific Islanders (8.0%) and American Indian/Alaska Natives (0.5%) (NCES, 2019). There is also a very small percentage that consists of students of two or more races (3.7%) (NCES, 2019).

Undergraduate Student Population in America by Sex

In Fall 2019, female students made up 57% of total undergraduate enrollment in degree-granting postsecondary institutions (NCES, 2021). The remaining 43% or 7.1 million students are male (NCES, 2021).

5. Social Life

Campus life is quieter in private universities compared to public ones. The latter is known for its thriving party scene. There is also a greater number of students one can choose to be friends with and a wider option of student clubs to join.

Students in private universities tend to be more scholarly and focus on their studies. However, they also tend to live on campus and can form close social ties with their roommates and classmates. There are also social gatherings, although they are not as big and as often.

6. Networking Opportunities

Students, whether from public or private universities, are advised to put in the effort to build their professional network as early as their undergraduate years. There is not much difference in networking opportunities between these two types of institutions given today’s equalizing factor: social media. Career networking can prove to be very helpful later on in achieving professional success. In fact, according to Hubspot, 85% of job posts are filled through networking (Frost, 2017).

7. Learning Environment

Tips for Choosing Between Public and Private Universities

1. Consider the overall cost of your education. If you are planning to go to a public university, it would be wise to get into one in your state as it would significantly lessen the cost you need to finish your studies. If you are thinking of applying for admission into a private university, be sure to inquire about the discounts they are offering and the available financial aid.
2. Calculate the potential return on investments. Think of choosing a university as choosing which institution you want to invest in. You can look at the successes at failures of the alumni in your prospects. You can also check on their mission and vision statements and see which resonates with you personally, that is, which you would want to be bet your future on.
3. Look at the top universities in the degree program you are planning to take. Check the reputation of these universities. Imagine how the name of the school in your curriculum vitae would reflect on you as you apply for career positions in your target field.
4. Think about which learning environment will make you thrive. At the end of the day, it is you and your learning outcomes that matter. If you are an independent learner, a public university will give you the independence to work on yourself. Athletes and researchers are also given more opportunities in a public university. If you value reputation more, like employers usually do, a private university may be the right fit for you.

Invest in the Right University

Now that you know what is the difference between a private and public university, you might be wondering, “is it better to go to a public or private university?” Truth be told, one option is not better than the other. The answer to this question will greatly depend on your preferences, which range from the type of curriculum you prefer, your budget, as well as the type of learning environment you will thrive in.

This article outlined 10 differences, namely (1) tuition cost, (2) reputation and prestige, (3) student-to-teacher ratio, (4) culture and demographics, (5) social life, (6) networking opportunities, (7) learning environment, (8) research opportunities, (9) extracurriculars, and (10) student outcomes. Hopefully, the examination of these aspects of education gave you clarity on which would be best for your personal and professional growth.

Should you want more information on this topic, looking into university statistics and online education statistics will also prove valuable to you at this point. You can also check out the differences between schools, colleges, and universities to further expand your options.

References:

1. Frost, A. (2017). 15 Surprising Stats on Networking and Face-to-Face Communication. Retrieved from https://blog.hubspot.com/sales/face-to-face-networking-stats
2. Irwin, V., Zhang, J., Wang, X., Hein, S., Wang, K., Roberts, A., York, C., Barmer, A., Bullock Mann, F., Dilig, R., and Parker, S. (2021). Report on the Condition of Education 2021 (NCES 2021-144). U.S. Department of Education. Washington, DC: National Center for Education Statistics. Retrieved from https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2021144
3. National Center for Education Statistics (2020). Characteristics of Postsecondary Faculty. Retrieved from https://nces.ed.gov/programs/coe/indicator/csc
4. National Center for Education Statistics (2020). Characteristics of Degree-Granting Postsecondary Institutions. Retrieved from https://nces.ed.gov/programs/coe/indicator/csa
5. Open Access Government (2018). New research highlights top factors students consider when choosing a university. Retrieved from https://www.openaccessgovernment.org/research-top-factors-choose-a-university/44278/
6. Panda, Pandey, Bennett, & Tian (2019). University brand image as competitive advantage: a two-country study. International Journal of Education Management, 33(2), 234-251. Retrieved from https://doi.org/10.1108/IJEM-12-2017-0374
7. U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Winter 2017–18, Outcome Measures component; and IPEDS Fall 2009, Institutional Characteristics component. Retrieved from https://nces.ed.gov/programs/digest/d18/tables/dt18_326.27.asp
8. Valbrun, M. (2018). Tuition Conundrum. Inside Higher Ed. Retrieved from https://www.insidehighered.com/news/2018/04/30/nacubo-report-finds-tuition-discounting-again