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:

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About gathard

Jim Gathard is the owner and principal of National Consulting Services, LLC a New York based consulting firm providing advisory in strategic planning, risk management, and organization management to financial services and higher education organizations Mr. Gathard has expertise and senior executive experience in private sector financial services, legislative and government relations, and higher education management. He has held senior business executive positions at JPMorgan Chase and Bank of America. Prior to his private sector experience Mr. Gathard has nearly twenty years in higher education administration as Deputy Provost/Executive Vice President, Vice President for Student Services and Compliance, Dean of Enrollment Management and Director of Student Financial Services. National Consulting Services, LLC clients include a broad spectrum of publically traded and private financial services firms and not for profit and for-profit organizations including colleges and universities. In the higher education space Mr. Gathard’s primary focus is the student segment including the student financial services, access and enrollment, institutional compliance and; financial literacy and debt management. Mr. Gathard serves on and is advisor to numerous industry and community related boards. Mr. Gathard has been a NYSFAAA member for more than 30 years.

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