The Real Reason Private Nonprofit Colleges Cost So Much
Adam Palasciano
July 9, 2025
Private nonprofit colleges tend to be expensive because they rely on tuition and investments to fund their operations, unlike public institutions that receive a greater amount of government support. Colleges are also increasingly spending more on a wide range of campus resources, further driving up costs for students. As a result, attending a private nonprofit college may necessitate taking out more in student loans to cover those costs.
Key Takeaways
Private nonprofit colleges often have higher operational expenses, largely due to fewer government subsidies.
Investment in student services and facilities also contributes to higher tuition costs.
A lack of federal regulation allows colleges to increase tuition rates at their discretion.
