Paul L. Caron

Monday, December 2, 2019

40-Year Returns On Investment At 4,500 Colleges

Chronicle of Higher Education, A New Study Calculates Return on Investment — 40 Years After Enrollment. Here’s What We Learned.:

College is expensive, and prospective students, their parents, and policy makers want to know: What kind of return can I expect on my investment?

Until now, those seeking answers have been able to evaluate the payoff of a degree as measured by official data on earnings, either one year after graduating or a decade after enrolling. A new report from the Georgetown University Center on Education and the Workforce provides an answer on an even longer scale: 40 years.

A First Try at ROI: Ranking 4,500 Colleges [press release] ranks 4,500 two- and four-year colleges that primarily offer bachelor’s or associate degrees or certificates by their return on investment 10 and 40 years after enrollment. To measure ROI, the study uses net present value, which estimates how future earnings are valued in the present. The measure, calculated using data from the College Scorecard, essentially weighs the cost of paying for college against what students could potentially earn down the line.

Top 10

Top 10 2

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1) I haven't kept up with it of late, but at least a few years ago there was a great concern of a pharmacy school crisis along the lines of the law school crisis, and for the same reasons (too many grads, too few jobs, too much debt, wildly exaggerated job claims).

2) It's interesting to see a few maritime academies near the top of the 40 ROI list, given the serious difficulties the American merchant marine had in the 80s, as brought to vivid life in John McPhee's "Looking for a Ship."

Posted by: Unemployed Northeastern | Dec 2, 2019 12:32:39 PM

Grads of Maine Maritime are found tending equipment on oil platforms in the Gulf and abroad. I know one who does. Also tending a boiler on a ship is similar to tending one at a university or in an office complex. They also can be found there. All those jobs pay very well from the start but will not take you to the CEO suite.

Posted by: Bill | Dec 3, 2019 12:35:31 PM