Students are increasingly holding their institutions accountable and asking for details and data on their return on investment–sometimes also called a return on education. There are several critical factors that go into college ROI and what it offers students post-graduation.
Higher-ed company Juno analyzed a number of data points to compile a list of the 2021 Best Value College Rankings, which are based on how long in years it takes a student to have a positive return on their college investment. The main variables in Juno’s methodology include average earnings two years after graduation, the average earnings for high school graduates, and whether the school is for-profit or not-for-profit.
Up until a student graduates from college, “college investment” will usually be negative because they are paying more in tuition than they earn in full-time income. This is where best-value colleges come in, because they will help students recoup that investment in just a few years after graduating. That exact moment is called the break-even point.” Other colleges may take much longer to help students recoup those tuition dollars and lost wages.
Here are a few elements of Juno’s college ROI research:
State Colleges (6.7 years) offer better value than Private Colleges (8.1 years)
Juno compared the 10 largest State Colleges to the 10 Largest Private Colleges in the country and found that on average, it takes 6.7 years for a student to start receiving a positive return on their college investment at State Colleges vs. 8.1 years for a student to start receiving a positive college ROI at private colleges.
Ivy League Colleges (3.6 years) offer better value than State Colleges (6.7 years) or Private Colleges (8.1 years)
Ivy League Schools may have the highest tuition and costs for students, but on average, a student takes just 3.6 years to receive a positive return on their college investment. That’s half of the time it takes for a student at a state college or other private college not in the Ivy League.
Top Party Schools (9.0 years) offer better value than Top Sober Colleges (11.1 years)
While the lists of top 20 Party Schools and Sober Schools from Princeton Review are always popular, a student at one of the top 20 Party Colleges takes 9.0 years to start receiving a positive return on their college investment compared to 11.1 years for a student at a Sober College to start receiving a positive return on their college investment.
Top Engineering Colleges (4.4 years) offer better value than Top Liberal Arts Colleges (8.7 years)
Juno compared the Top 20 Engineering Colleges in the country (that had the highest percentages of students graduating with engineering degrees) to the Top 20 Liberal Arts Colleges in the country (that had the highest percentages of students graduating with non-engineering degrees).
- First-generation students are more likely to seriously consider leaving college - April 17, 2024
- How higher ed can meet workforce needs - April 15, 2024
- Higher ed leaders believe continuing education units are undervalued - April 10, 2024