Introduction
Various colleges and universities offer programs that can be searched for their return on investment (ROI) on the Foundation for Research on Equal Opportunity website.
Critical Things to Consider for College-Bound Students
What type of income can I expect to earn after obtaining a degree? is a critical concern for students. In general, statistics can be deceptive. For instance, the U.S. Bureau of Labor Statistics asserts that individuals with bachelor’s degrees earn 68% more than those with high school diplomas. However, salary ranges fluctuate significantly within the same field. For example, the career ROI of business majors at the University of Virginia may exceed $3 million, while 13% of business graduates may experience a negative ROI.
Understanding the Variability of ROI
The value of a degree is subject to substantial variation across different disciplines and schools. The lifetime ROI of over 40,000 undergraduate disciplines, sub-baccalaureate credentials, and more than 10,000 master’s and PhD programs is estimated by The Foundation for Research on Equal Opportunity, a nonprofit think tank. The below ROI figures, were produced by using new data from the U.S. Department of Education’s College Scorecard, as well as the U.S. Census American Community Survey.
Highlights of the Report:
- The average ROI for a bachelor’s degree is $160,000.
- Degrees in economics, computer science, nursing, and engineering frequently yield returns of $500,000 or more.
- Technical trades certificates, such as precision metal working and vehicle maintenance, have a median ROI of $313,000.
- In general, associate degrees and certificates in liberal arts do not generate a return on investment.
- The high costs and modest pay increases in nearly half of master’s degree programs result in graduates being financially worse off.
Using the ROI Tool
You can research the ROI of programs on FREOPP.org. For instance, Northeastern State University and Old Dominion University are among the most prestigious public universities that offer master’s degrees in accounting. New York University provides the most significant ROI among private institutions.
The Significance of ROI Analysis
It is imperative to verify the ROI figures prior to enrolling in a degree program. Informed decisions regarding educational investments are facilitated by the identification of institutions with strong or poor ROI.
Conclusion
It is imperative to examine ROI data in order to assess the potential value of an academic program, despite the fact that individual financial outcomes may differ.
Acknowledgment: This article was inspired by and includes information from "How to Check the ROI of Academic Programs" published on Wealthmanagement.com. For more detailed insights, you can read the full article here.
