Share this infographic on your site!



Source: AffordableSchools.net

Higher Education ROI

In recent years ballooning student debt and school costs have led many to question whether higher education is a good investment. While college and grad school do cost a lot, it’s the return on investment that future students should be focusing on. Contrary to discussions focusing on costs, the price of not obtaining a post-secondary degree has never been higher.

College has become 12x more expensive in one generation:[1]

You could send 12 kids to college in 1978

For what you can send 1 child to college with today.

While the price of housing and medicine seems to have skyrocketed, it’s really education that costs a ton more.

With your average student spending:

College type || tuition and fees || total including room and board

Public two-year in-state || $3,264 || $10,730

Public Four-Year In-State || $8,893 || $18,391

Public Four-Year Out-of-State || $22,203 || $31,701

Private Nonprofit Four-Year || $30,094 || $40,917

Factoring in financial aid:

Cost vs. Financial Aid

[school type|| avg cost || avg total aid || net tuition

Public 2-year || $3,264 || $4,810 || -$1,550

Public 4-year || $8,893 || $5,770 || $3,123

Private 4-year || $30,094 ||$17,630 || $12,464

Or average four year costs of:

Public 2-year:-$3,100

Public 4-year: $12,492

Private 4-year: $49,856

Not including room and board.

7/10 college students borrow to deal with the cost:

With Average debt at graduation for borrowers growing

2008: $23,287

2009: $24,684

2010: $26,165

2011: $27,735

2012: $29,400

It’s a large investment. What’s the return?

ROI: Return on Investment

Higher education has paid off in elevated earnings, particularly since 1996[6]

Median Adjusted Household Income of Households headed by 25 to 34 year-olds

[level of education, earnings per month by year]

Professional & Doctorate:

1984: $6,946

2009: $10,382

Master’s:

1984: $7,074

2009: $8,618

Bachelor’s:

1984: $5,960

2009: $7,232

Associate’s:

1984: $5,075

2009: $4,841

Some College:

1984: $4,302

2009: $3,937

High School:

1984: $3,587

2009: $3,067

(All in 2012 dollars)

Leading to the median earnings for full-time year-round workers 25+ in age[8]

Professional Degree (2%): $102,200

Doctoral Degree (2%): $91,000

Master’s Degree (10%): $70,000

Bachelor’s Degree (25%):$56,500

Associate’s Degree (11%): $44,800

Some College (17%): $40,000

High School Diploma (27%): $35,400

Less Than High School (7%): $25,100

And millions in additional lifetime earnings:

Lifetime earnings:[9]

High school diploma: $1.2 million

Bachelor’s Degree: $2.1 million

Master’s Degree: $2.5 million

Doctoral Degree: $3.4 million

Professional Degree: $4.4 million

This depends some on major[7]

Mean monthly earnings of bachelor’s degree holders by major:

Business: $5,843

Computers: $6,743

Engineering: $7,106

Liberal arts: $5,017

Social science, law: $4,810

Natural science, medicine: $4,956

Education: $3,806

Average: $5,446

But almost all grad schools are good investments. [9]

Boosting your earnings by this much per year…[7]

Business: $36,072

Computers: $15,948

Engineering: $13,380

Liberal Arts: $8,688

Social science, law: $8,076

Natural science, medicine: $23,100

Education: $14,556

Average: $15,432

As well as the intangibles

Prestige

Greater Understanding

Fulfillment

Greater responsibility

Higher education is expensive, but it’s an investment. One that can change your life.

Citations: