Graduate School: Public vs. Private
There are over 1,000 universities in the U.S. that offer graduate programs. Understanding the difference between public and private institutions can set you up for success.
Why it matters
A graduate degree costs time and money. Learning the pros and cons of both options helps you decide what's the best option for you.
What's the Difference?
State-Supported & Publicly Governed
- Receives government funding.
- Governing boards with state oversight, but institutional independence.
Privately Owned & Operated
- Relies on tuition, endowments, and donations.
- Divided into private for-profit and nonprofit institutions.
Private universities are also broken down into private for-profit and nonprofit schools. For-profit operate like a business, seeking to generate returns for shareholders. Nonprofit universities reinvest all surplus revenue back into education and student services.
By the numbers: Institutional Distribution in the U.S.
Of all postsecondary educational institutions in the U.S., 32% are public, 38% private for-profit, and 30% private nonprofit.
What It Means for You
The money public universities receive from state government allows them to offer lower in-state tuition for residents. Out-of-state tuition is higher, often comparable to private schools. On average, private for-profit is slightly cheaper than nonprofit.
| Institution Type | Average Annual Graduate Tuition & Required Fees | Notable Schools |
|---|---|---|
| Public | In-state: $11,766 Out-of-state: $21,165 | University of California, Berkeley University of California, Los Angeles University of Michigan–Ann Arbor |
| Private nonprofit | $20,184 | Princeton University Massachusetts Institute of Technology Harvard University |
| Private for-profit | $17,672 | Grand Canyon University University of Phoenix DeVry University |
Note: Tuition figures are 2023–24 institutional averages.
Differences Beyond Cost of Attendance
There are also structural differences beyond tuition and cost of attendance.
Public Universities
Private Universities
Keep In Mind…
Your State
Consider the schools in your specific state of residence where you could qualify for in-state tuition benefits.
Career Location
Public universities can have especially strong in-state alumni networks and employer relations.
Diminished Admissions Benefit
Unlike for undergraduates, graduate admissions are handled by individual departments not a centralized office. There can still be an in-state boost, but it’s less strong.
Net Price & Aid
Assistantships, scholarships, and employer benefits can make private programs cheaper than public.
The Bottom Line
For in-state residents, public is usually the cheapest. Funding packages for private can narrow the gap. Choose based on program outcomes, career fit, and location.
Sources: U.S. News & World Reports, National Center for Educational Statistics. Reviewed as of Sept. 11, 2026.
Planning Your Graduate Funding?
Use our free calculator to estimate your annual funding gap, check federal borrowing cap compliance, and model public vs. private degree costs.
Chart Your Path Now