Calculating the Return On Investment For Colleges

The Georgetown University Center on Education and the Workforce just released a new report ranking 4,500 colleges and universities by return on investment.

A fascinating, interactive, tool examines the Net Present Value (NPV) of degrees at increments of 10, 15, 20, 30, and 40 years. Some of their higher-level findings include:

  *   Bachelor’s degrees from private colleges on average have higher ROI then degrees from public universities 40 years after enrollment.
  *   Community colleges and many certificate programs have the highest returns in the short term, though bachelor’s degrees eventually overtake most two-year credentials.

I would encourage you to spend some time creating your own sorts and examining the data. How much analysis like this can or should influence student decisions is unclear. With concerns over college costs, there will continue to be attempts like this to better define the return on investment.

About Raymond Kennelly

Senior Vice President for Enrollment Management, Marketing and Planning at Lewis University Skilled in Strategic Planning, Recruiting, Public Speaking, Media Relations and Curriculum Development.

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