How To Calculate Your College Education Return On Investment

forbes | March 27, 2019

With all the talk about changes to student loan repayment plans, popular student loan forgiveness programs potentially ending, and now limits on student loan borrowing, it's essential that you fully understand what your college return on investment (ROI) is.Going to college is an investment - just like buying stocks or investing in real estate. You are spending money (tuition, room, board, and more) with the goal of earning more money in the future - due to better paying jobs and opportunities.And this has shown to be true for the last several decades according to the National Center for Education Statistics. Adults who complete a bachelors degree, on average, earn 57% more than those who are high school graduates. That's a significant boost in earnings. But, if you spend too much to achieve it, it might not be worth it. When you're 17 or 18 years old, thinking about your lifetime return on investment of your college expenses is challenging. When you're that age, it's hard to even plan what classes to take, let alone your college major, future career, the implications of borrowing money to pay for school.

Spotlight

The Center for Global Education at Asia Society partners with leaders and institutions from the United States, Asia, and around the world to tackle one of the most critical education challenges today: how to educate all students for employability and citizenship in a global era. A future of peace and prosperity depends on ensuring a high-quality 21st century education for the next generation. In today’s interconnected world, the ability to appreciate diverse cultures.

Spotlight

The Center for Global Education at Asia Society partners with leaders and institutions from the United States, Asia, and around the world to tackle one of the most critical education challenges today: how to educate all students for employability and citizenship in a global era. A future of peace and prosperity depends on ensuring a high-quality 21st century education for the next generation. In today’s interconnected world, the ability to appreciate diverse cultures.

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