Public colleges and universities offer online courses, many of which satisfy degree requirements. Colleges such as State University of New York and several California State Universities permit students to complete entire degrees online. Course costs are typically the same for online students as for courses taken on-campus. Financial aid is also available in the form of scholarships, grants and student loans. Online course tuition is considerably lower than at private institutions.
Private colleges are educational institutions operating to generate a profit for the owners of the school. Private for-profit institutions tend to be vocational and specialized, offering certificates and degrees in areas such as health care, computer science, Internet technology and business. Argosy University, California Southern University, Devry University, ITT Technical Institute and University of Phoenix are examples. Private for-profit online schools are more expensive than public colleges and have been associated with fraudulent and high-pressure marketing practices, according to a study conducted by the U.S. Government Accountability Office.
Non-profit private colleges operate out of a specific mission or cause. Non-profit private educational institutions offer online courses and degrees. Several colleges are considered among the most prestigious, such as Harvard and Drexel Universities. Other examples include Alliant International, Excelsior College, and Western Governor's University. Tuition rates vary greatly, but can be very expensive. Harvard University online courses are among the most costly, ranging from $600 to $1,800 per credit in 2010-2011.
Financial aid is available at most schools offering online programs. Private institutions, whether for-profit or nonprofit, typically require higher student loan debt. According to a 2010 U.S. Department of Education report, over 40 percent of student loan defaulters attended private, for-profit colleges.