A private university can either be for-profit or non-profit, and it is contrasted with public universities, which the state government usually owns. In this article we shall see Who is the Owner of a Private University?
Most private universities are non-profits, and so they do not have owners. Sure, the university may have been started by one person or a group of people, but that doesn’t mean they necessarily own it. Instead, most private universities are managed by trusts and have a board of directors that looks after their affairs. This board of directors appoints people to management positions in the university and allocates funding among various departments. In contrast to public universities, private universities are generally more expensive but can also offer a higher quality education.
How Private Universities are Funded?
Unlike public universities, private universities are not funded by the taxpayer on a state or a federal level. Instead, they have alternate funding methods. Depending on if the university is a for-profit or a non-profit, the capital from the following sources may or may not be paid as dividends.
Endowments
An endowment is a legal structure used to manage the donations and investments of a university. In the US, endowments are vital to the financial well-being of most institutions. For example, universities would not be able to carry on in teaching, researching, or recruiting capabilities without their endowments. At the moment, Harvard University has the most significant financial endowment globally.
Tuition Fees
This is perhaps the most obvious source of income for private universities. Private colleges are significantly more expensive than public colleges and the steep tuition fees they charge are important contributors to their finances.
Voluntary Donations from Alumni
Once you graduate from your college, you’ll feel a strong sense of affiliation towards it. Colleges bank on this loyalty and often write letters asking for donations from notable alumni.
Advantages of Private Universities
- In comparison to public universities, private universities are very diverse in terms of demographics. They don’t have to accept students from a specific state like public universities and so they don’t discriminate on the basis of a student’s geographic location.
- Private universities generally have a lot fewer students than private universities, as a consequence, private classrooms are a lot less populated. This can mean that each student gets proportionally more time and attention from the instructor than they would in a public university.
- Lesser students in private universities also means less competition. You’ll have a lot more chances to compete for specific majors or sports teams since there won’t be as many students vying for the same position.
- While private universities can be expensive, they also offer a lot more scholarships than most public schools. These are especially helpful to deserving, underprivileged students.
Advantages of Public Universities
- If you want to go to a university in your state, then you’ll probably have a lot more luck trying for a public college over a private college. Public colleges tend to give preferential treatment to in-state students whereas private colleges do not.
- Public schools often have a much larger variety of majors and programmes to choose from in comparison to private colleges. If you choose a private college, you’ll have to pick from a very limited selection since the private college’s sources of funding are much more limited.
- Public colleges are much less expensive than private colleges. The tuition costs between the two can vary drastically and thus private colleges can leave you in much greater debt for years to come. Moreover, if you’re an in-state student then public colleges will likely subsidize your higher education even more their usually cheaper fee.
- Public universities are generally much easier to get into than private universities. You won’t have to go through as rigorous of an application process or multiple interviews – this’ll be a lot less stress inducing than the many stages of private university application. Public universities also have a lot fewer prerequisites than private universities.
- With public universities, you don’t have to worry about issues of accreditation since all public universities are accredited within the state they are in. However, there have been various issues with private universities – especially for-profit private universities – that have not been regionally or nationally accredited. In such cases, students can undergo years of education and still not have a valid degree to show for it.
Conclusion
A private university differs from a public university in that it is not paid for by the taxpayer. In most cases, private universities are not owned by one single individual and are instead controlled by a trust and have a board of directors who manage its affairs.
A decision between a public and a private university should be made on the following basis: the cost of attending the institution, the majors available, campus population, and funding options. The same type of university does not work for everyone: look for what fits your particular needs through thorough research and then make a decision.
FAQs
Are private universities more expensive than public universities?
Yes, in most cases private universities are more expensive than public universities. While the costs of a public university may vary depending on if you’re an in-state or an out of state student, they are generally still less than the overall costs of private universities.
Do private universities offer more aid than public universities?
Yes, private universities tend to offer more aid than public universities. Private universities have much higher tuition costs than public universities and as a result, they are a lot less affordable for the average student. That’s why private universities may offer more scholarships and have better financial aid packages than public universities.
Does the Dean own the university?
No, the Dean of a university does not own the university. Deans are usually appointed by the managing body of a university and can be removed by this very same body.
Who is the Vice Chancellor of a university?
The Vice Chancellor is the most powerful person in the management of a university. This person is the head of all university affairs and oversees all campus activities.
