In this article we answer the following questions: 1º Which education has the highest roi 2º What is the ROI highest for? 3º What is a good ROI for college?
Which education has the highest ROI
In this article we answer the following questions: 1º Which education has the highest roi 2º What is the ROI highest for? 3º What is a good ROI for college?
Which education level has the highest return on investment
Whenever you judge the price of anything, whether you realize it or not, you are thinking in terms of ROI or Return On Investment. Paying $100 for a stick of gum would be a terrible return on investment. Paying $100 for a brand new Rolls-Royce would be an impossibly amazing return on investment to the point that anyone would question such a deal. And when students are considering which college to attend, they need to ask what education has the highest ROI.
Which education level has highest return on investment?
Georgetown University’s Center on Education and the Workforce McCourt School of Public Policy’s website offers the “Ranking ROI of 4,500 US Colleges and Universities,” which uses data from the expanded College Scorecard. It states that “Community colleges and many certificate programs have the highest returns in the short term,10 years after enrollment, though returns from bachelor’s degrees eventually overtake those of most two-year credentials.” In other words, a possible smart strategy for a student is to go to community college, which may help earning potential in the short term, and some of that earning potential can be then put towards a 4-year school to earn a bachelor’s degree and so increase earning potential in the long term. It is important, however, to keep in mind that this is one possible scenario, and that individuals must make decisions based on their own lives and circumstances.
What is the ROI highest for?
The Georgetown University website has a special chart, showing the Net Present Value (NPV) or “how much a sum of money in the future is valued today” and includes “costs, future earnings, and the length of time it would take to invest and earn a certain amount of money over a fixed horizon.”
According to the chart, Albany College of Pharmacy and Health Sciences in New York’s NVP of 40 years is the highest listed at $2,722,000.
What is the best degree for investing?
Make no mistake that students are investing in their future when they choose a degree. Georgetown University’s website states that “bachelor’s degrees from private colleges, on average, have higher ROI than degrees from public colleges 40 years after enrollment.” So, while a private school may be the more expensive option, it might be worth a second look and exploring possible scholarships and student aid options in light of its ROI potential.
What is a good ROI for college?
While this may seem like a simple question, it involves quite a few factors. Optimally, a student should want their earning potential to be much higher than the amount of money they pay for their education. However, there are other factors to consider.
For example, does a school cost more but have more connections in a particular field and industry that could lead to internships and employment down the road? How much time can a student dedicate to their education? Are there personal factors like family and health considerations? Is a career field likely to still be in existence 10, 20, 30 or 40 years from now? And this doesn’t take into consideration more personal emotional decisions like could a student see themselves working in a career for decades or would the nature of the work burn them out before they would see a return on their investment?
Conclusion: What education has the highest ROI
At the end of the day, there are both concrete and subjective aspects to the education ROI. Based on Georgetown University’s chart, going into the health or pharmaceutical fields seems to have a high return of investment. But if this is not where a student’s talents or interests lie, that ROI figure could be turned on its head.
In the end, an education’s ROI is important, but it is one of many things that need to be considered.
To learn more, visit Georgetown University’s Center on Education and the Workforce McCourt School of Public Policy’s website at https://cew.georgetown.edu/cew-reports/collegeroi/
