As the popularity of online degrees has soared, many traditional schools have recognized the benefits of offering online degree options and developed their own online programs. According to Forbes.com, this often takes students away from the original solely-online schools:

Apollo Group Inc.’s University of Phoenix online unit, founded in 1989, was among the first accredited for-profit universities to provide college degree programs over the Internet. As one of the largest online providers in the space, the university offers dozens of online degree programs in areas such as business, technology, health care and education.

But Signal Hill analyst Trace Urdan says Apollo’s mass-marketing approach of being “all things to all people” may hinder the company when compared to universities that offer more specialized, niche areas of study - often at cheaper prices.

“We expect top line growth to continue to slow by virtue of Apollo’s size and scope, and believe the company’s initiatives to reinvigorate growth will likely disappoint expectations, both in driving the top line and in terms of what they will cost at the bottom line,” Urdan wrote in a recent client note.

In many cases, public universities charge lower tuition when compared to for-profit schools, especially if a student is an in-state resident. Recent research also indicates that students prefer to study closer to home, which would also favor public, locally focused universities.

Greater familiarity with certain universities may also work against typically less well-known for-profits, which may in turn try and tap new markets abroad as the domestic working adult market becomes more crowded.

“The average consumer is more comfortable with traditional schools, which have stronger brands and have been around for awhile,” Garrett says.

For students, however, it’s a good thing that more traditional schools are now offering online degrees. It just means that students have more options to choose from.