Once sneered at as "diploma mills," for-profit colleges like DeVry University and the University of Phoenix are seeing enrollments rise along with their academic reputations as budget cuts divert students away from California's public universities.

While the enrollment increases have been moderate so far -- about 3 percent a year at the University of Phoenix -- administrators say their schools are poised to benefit even further when thousands of entering freshmen are turned away from the University of California and Cal State University systems this year.

Many students fed up with not being able to get the classes they need at public universities have already made the switch.

Marcos Valdivia, 34, of Burbank, considered going to California State University, Northridge, for his accounting degree, but instead chose DeVry University.

"I knew students who went (to Cal State Northridge) and it was taking them seven years to graduate and the classes were very big," Valdivia said. He added that it only took him a year and a half to complete his bachelor's degree at DeVry after getting his associate's degree at another school.

Even though tuition at for-profit schools is more expensive than at Cal State schools -- about $11,000 a year versus $2,000 -- many students said they were prepared to pay more or take out loans to attend the for-profits so they could graduate more quickly and join the work force earlier.

Another attraction for students is that for-profit schools have notably improved their reputations among employers, who once looked down on their graduates.

"For a long time, the employer companies were highly suspicious of for-profit institutions," said Bob Moore, executive director of the California Post-Secondary Education Commission.

"But Phoenix has gained tremendous credibility, as has DeVry, and they are highly respected and accepted by the employer community. Many employers will pay the tuition at these institutions."

Kim Barnes, a human resources representative at Precision Dynamics, a 420-employee San Fernando manufacturer of disposable hospital products, said her company's perception of the for-profit schools has changed dramatically over the years.

"I've been here close to six years. Back then, if someone applied to take a class at the (private) University of La Verne or the University of Phoenix, they weren't really considered (for reimbursement)," Barnes said.

"But now? Absolutely."

The company usually has about 10 employees taking classes -- ranging from engineering to Spanish any given year -- including its director of accounting, who recently completed a master's degree at the University of Phoenix.

Even though enrollments in the Cal State and UC systems have been rising despite budget cuts, they are not rising to keep up with demand. An estimated 7,500 freshmen will be turned away from the two systems this year and redirected to the state's community colleges under Governor Arnold Schwarzenegger's proposed budget. And in the Cal State system alone, another 20,000 students are expected to be lost due to increasing fees or lack of available classes.

While the for-profit schools stand to benefit from this, they are not an alternative for every potential Cal State or UC student. For one, most of the courses are geared for specific careers in business, nursing, engineering and computers. If your passion is medieval history or English literature, don't bother applying.

For-profit universities don't have elaborate admissions standards like those at public universities or at other private universities, like the University of Southern California or California Lutheran College, which offer more liberal arts instruction.

For example, the University of Phoenix only requires that students be high school graduates, at least 21 years old and employed. DeVry University requires its students to have a high school diploma or a GED and to pass an entrance exam.

Both DeVry University and the University of Phoenix are accredited universities, offering both bachelor's and master's degrees.

ITT Technical Institute, another for-profit school in Sylmar, is a career college offering associate's and bachelor's degrees in software engineering, electronics and digital entertainment and game design, among other subjects.

Fardad Fateri, president of DeVry University's three Southern California campuses, said enrollment for the January term, typically the least popular, was up several percentage points, and applications for the March session are also up.

The West Hills campus has 300 students, the Long Beach campus 2,400 and the Pomona campus 2,700. Tuition is about $11,000 a year at DeVry, but scholarships and financial aid are available, Fateri said.

Fateri said state budget cuts aren't the only reason students choose DeVry. DeVry's career-focused programs and the opportunity for students to earn bachelor's degrees in three years, instead of four or six at a state school, appeal to students.

John Del Campo, director of enrollment at the University of Phoenix, said enrollment is up by about 3 percent compared with last year. The school has more than 14,000 students in 13 locations, including 2,500 at its West Hills campus. Tuition is $392 per credit for undergraduates, amounting to about $9,000 per year.

Del Campo said the University of Phoenix isn't trying to capitalize on the misfortunes of state schools. But because it has numerous satellite locations and the ability to open up a class as long as there are at least 14 students, and provides in-house training to companies, it fills a niche.

He said the curriculum focused on four skills: writing, oral presentations, critical thinking and teamwork.

"Employers love that."