Together with Bloomberg BusinessWeek, PayScale on Monday released a report on the return on investment (ROI) in education at 554 bachelor's degree granting colleges and universities
All together, the PayScale College ROI Report ranked 852 possibilities, evaluating public universities for both in-state and out of state tuition costs.
Why evaluate college tuition as an investment? There is a clear analogy from the housing market.
Conventional wisdom used to say that buying a house was always a great investment, offering returns of 10% or more a year. As many have painfully learned over the last few years, buying a house at the wrong price can be a bad investment, particularly if you borrowed too much to pay for it.
Conventional wisdom also says that paying for tuition, room and board for a 4-year bachelor's degree, no matter what the cost, is a great investment, offering long term returns of $1,000,000 or more over going to work straight out of high school.
The PayScale College ROI report shows that the return varies tremendously across schools. Netting a million dollar payday is far from a sure thing.
In the next few blog posts, I'll cover the basics of our methodology, why we made the choices we did in calculating ROI, some guidance on how to use this to evaluate college choices and costs, and respond to some of the criticisms.
Whether you went to college or not, are you earning what you are worth? Spend 5 minutes completing the PayScale online salary evaluation survey and know.