American universities are divided into two categories, public and private. They must implement the relevant regulations of each state in terms of school objectives, curriculum, teacher recruitment and equipment conditions.
The main difference between public and private universities is the different sources of funding. Public universities are funded mainly by state government through tax grants, as the federal government grants funding for research and purchases of books and equipment for the university and various types of funding for students. However, private universities receive very little money from the federal government, and their funding is mainly contributed by churches, the alumni society, the business community, foundations, and the proceeds from these endowments.
Advantages of American Private Universities
The history of private universities in the United States is far longer than that of public universities. Famous American universities, such as the eight universities of Ivy League, are private. It was not until the second half of the 19th century that the first-class public institutions (such as the University of California at Berkeley and the University of Michigan at Ann Arbor) were formed. In the United States, many private universities enjoy a higher reputation than those in other countries. American private universities are not only successful education institutions, but also the center of the industry: the rise of Silicon Valley is attributed to Stanford University, and the boom in high-tech industries around Boston is based on MIT.
Although the tuition fees of private universities are more than $35,000 a year, which is quite expensive for most people, but private universities have nurtured a large number of successful alumni and thus receiving many donations from alumni and businesses. With this money, the scholarships of private universities are much more generous than those of public schools.
Public universities are more flexible and effective in terms of cost control, operational efficiency, student admission, and response to social needs. Private schools are funded by foundations and thus their funds are very flexible. They can attract R&D masters with a larger salary, provide abundant funding for R&D, and set up new disciplines. This flexible operation is unique to the market-oriented economy. This is why private universities in the United States can provide high-quality teaching and cultivate high-quality students. Moreover, this free environment is more appealing to talents. Whether a university can be called successful depends on its ability to attract outstanding talents, and outstanding talents yearn for a flexible and free environment.
