Quest return on investment in higher

Access to higher education is good for future work and income, this is almost the whole world will agree. United States recession relationships with University enrollment is a very good circumstantial evidence. United States economic trouble starting from 2007, 2008-09 financial crisis caused the housing bubble burst, the stock marketdip. During the United States universities enrolment rose from 17.76 million people in 2006 to 2009 20.43 million, up 15% (United States Department of Education National Center for education statistics data). By contrast, the United States population growth over the same period to 3% (Bureau of the census data), and in particular from2008-2009, population growth only 0.8%, but the number increased by 6.9%

The economic downturn is certainly an important reason for enrollment is up. Because of the rise in unemployment, jobs are not easy, and prefer high school graduatesto college there are more adults to continue their education. But in the final analysis, it is believed that "value" College is the most important factor. Graduated from University or future employment and income does have a big impact, but what "value"or "worthless", let us take a look at United States higher education return on investment.

Wall Street Journal's site in June this year has had a blog to introduce United Stateshigher education return on investment, with data from the network for real-time statistical analysis company wages "salary scale" (PayScale). The company also did a similar analysis for Bloomberg. So we are here to discuss the return on investment inhigher education, also used the information it provides.

Millions of people each month using schedule website to learn about their own income commensurate with the position. Scale company personal data furnished by them classified statistics, all kinds of professional dynamic salary data. Many companieshire employees and budget data as a reference for it.

In the calculation of return on investment when the University, pay scale only thoseuniversity graduates, while excluding received a master's degree. Schools undergraduate costs include tuition, books, living expenses are public information, but each school's graduation rate, in calculating tuition when this factor to be taken into account. For example a by private University of costs for annual 40,000 dollars, undergraduate graduated rate for 80%, which 45% read 4 years on graduated has, 20% to read 5 years, also has 15% read has 6 years only graduated, that is, read 4, and 5, and 6 years graduated of students in all graduates in the of proportion respectively for 56% (45/80 = 0.56), and 25% and 19%, so this school each undergraduate graduates average spent has (56% x 160,000 + 25% x 200,000 + 19% x 240,000) = They're 185200 dollars.

They will work 30 years after graduation in each school, minus the costs, minus the same age 34-36 years of work income of high school graduates, all converted into 2010 dollar value, each school's 30-year total returns on investment as well as investment returns. Here are pay scale data of the company's top 10 schools:

Name year average cost 30 return on investment ROI

1 $189,300 MIT $1,688,000 12.6%

2 California Institute of $181,100 $1,644,000 12.6%

3 Harvard University $189,600 $1,631,000 12.5%

4 Harvey Mudd College $187,700 $1,627,000 12.5%

5 Dartmouth College $188,400 $1,587,000 12.4%

6 Stanford $191,800 $1,565,000 12.3%

7 Princeton University $187,700 $1,517,000 12.3%

8 Yale University $194,200 $1,392,000 11.9%

9 Notre Dame $181,900 $1,384,000 12.1%

10 Penn State $191,300 $1,361,000 11.8%

The University is a private school, and half is an Ivy League school. Their fees are very expensive, undergraduate study at a cost of nearly $ 200,000, about 1 time times more expensive than the average public University. Despite huge investment gains are great. After the deduction of the investment, within 30 years more than those with only a high school diploma earn nearly $ 1.5 million, earns $ 50,000 a year, annualaverage returns on investment by more than 12%. Private university scholarships areusually more, if you take that factor into account in annual investment return as high as 15%.

Although schools private universities stand out with the highest returns on investment, but on average, is still best buys in public schools. Next time we will introduce into the United States public universities benefit economically.

(Salary scale company Web site:

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