Nonprofit universities are those that receive government money, tuition, or donations and include both public and many private universities. The Department of Education provides resources for newly created private schools and outlines the state-specific laws and regulations that must be followed. For-profit schools, on the other hand, use different educational approaches and billing styles to maximize profits and minimize costs. They may not offer the same guarantees as nonprofit schools, but they can be more accessible to students who have struggled in school.
Conversely, students with excellent academic records but little money may struggle to pay tuition for for-profit schools and can get more funding from nonprofit public and private schools. In Texas, groups wishing to start a private school should go to the Texas Education Agency (TEA) for guidance. The vast majority of public and private colleges and universities are organized under provisions 501 (c) of the Internal Revenue Code, as are many kindergartens and trade schools. The State Commissioner of Education recognizes the accreditation power of the Texas Private School Accreditation Commission (TEPSAC).
TEPSAC works with several different accreditation agencies that evaluate the variety of private schools seeking accreditation. For-profit schools are often post-secondary institutions, such as colleges and universities, but there are also for-profit elementary and secondary schools. TESC and COSC are regionally accredited nonprofit public schools and Excelsior is a regionally accredited nonprofit private school. Because their primary goal is profit, these schools can prioritize paying tuition over providing an education, and may not put as much effort into recruiting and retaining exemplary educators as nonprofit schools do.
