College Education ROI

College Education ROI- Part Two

The ‘Return On Investment’ of a college education continues to come under question as school COAs increase and rising student loan debt issues are debated.  Some questions being asked include;

– What resources, and what kind of resources, should be made available to finance           post-secondary education?

– Who should have access?  Should there be a means test?

– Should they be subsidized? By who?  How much?

Recent research* (part two) provides substantial data to support the premise that  positive, measurable wage improvement exists for college educated individuals vs. those with only a high school diploma.  “As with any investment, the costs and benefits of college accrue over different time intervals, making it a bit tricky for students and their parents to judge the economic value of a degree,” the report says. “Indeed, for the typical college student, the costs of college result in a negative cash flow while in school (assumed to be four years for a bachelor’s degree), followed by a positive cash flow (the college wage premium) received over one’s entire career. In order to weigh the up-front costs against the lifetime benefits, we calculate the internal rate of return — a measure investors commonly use to gauge the profitability of different kinds of investments.”

Join the debate.

*Full report can be accessed at:

https://libertystreeteconomics.newyorkfed.org/2019/06/despite-rising-costs-college-is-still-a-good-investment.html

She Left the Education Dept. for Groups It Curbed. Now She’s Back, With Plans.

WASHINGTON — Depending on whom you ask, Diane Auer Jones has returned to the Education Department with either a mission or a vengeance.

A little more than a decade ago she resigned as an assistant secretary for postsecondary education in the George W. Bush administration, after protesting the department’s treatment of an accreditor that oversaw religiously affiliated, liberal-arts colleges. Department officials saw accountability in their crackdown; Ms. Jones saw bias against a gatekeeper for nontraditional college degrees.

“Favored accreditors are treated differently than unfavored accreditors,” she said in an interview. “That was my awakening to how the current system could be manipulated to pick winners and losers.”

Now, as the chief architect of Education Secretary Betsy DeVos’s higher education agenda, Ms. Jones is leading the charge to overhaul the accreditation system, and, to critics, revive the fortunes of for-profit organizations that operate low-quality education programs that have a track record of shortchanging students and taxpayers.