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: