The Cost of College

For financial aid purposes, there are five types of colleges:

• Public In-State Universities

• Public Out-of-State Universities

• Private Colleges/Universities

• Two-year Colleges

• International Universities

What is the difference between public and private universities?

Public universities are partially funded by the government of the state in which they operate. 

You pay taxes. Those taxes flow to the state government, which then spends them on the universities funded and operated by the state. In contrast, private colleges mostly operate independently of state influence and funding. As a result, public universities typically have much lower sticker prices than private colleges. That said, this lower sticker price only applies to students who qualify for in-state tuition. 

Private colleges are far more likely than public universities to make their net prices flexible through discounts, particularly scholarships. 

A private college with a higher tuition could easily drop to the cost of a public university for a student with great academic achievement. Conversely, because public universities already have comparatively low sticker prices for their residents as well as (usually) much bigger applicant pools, earning a scholarship at a public university is far tougher to do unless your state has a built in merit-based program.

Based on these differences, you may already have a good idea of which types of colleges are more likely to offer you an affordable price. And you’re probably right.

Next up…FAFSA 101.