The main difference between public and private universities is their source of funding. Public universities receive money from the state for each student enrolled. Private universities do not receive such funding, and instead rely on donations, investments and tuition fees. Both private and public universities can be non-profit organizations, although there is a growing sector of for-profit private colleges. As long as the school is accredited by an accrediting agency recognized by the Department of Education, students attending public or private universities are eligible to receive financial aid loans and scholarships from the federal government.
Most universities and colleges have entrance requirements. Students who do not meet the entrance requirements are either denied entrance into the university, or asked to take remedial classes before they can attain regular admittance. Private universities tend to have more exclusive admission requirements and thus admit fewer students than public universities. However, higher admission requirements are not necessarily a reflection of the university's quality of education.
Because public universities are supported by tax dollars from the state in which they reside, they tend to be less expensive to attend than private universities. While this may be true generally, it is important to check the financial aid opportunities at the university. Some private universities offer generous scholarships, loans and grants to their students.
In a very general sense private universities are thought to be more prestigious than public universities. It is important to note that this is not always the case. Some programs at public universities are very highly regarded. Rather than judging a university by the public perception, applicants should evaluate the quality of the individual program they are interested in.
Because public universities get a large portion of their funding from the state, state budget cuts often effects university funding. A reduction in state funds can lead to higher tuition costs, reduced program offerings, larger class sizes and a reduction in student services. While private universities are sometimes affected by the larger economy, they do not suffer from state funding cuts.