The Palmetto Insider

The blog of the South Carolina Policy Council

What Is Your College Tuition ROI?

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 Ever wondered what your college degree is worth? Well, the folks at the salary data site PayScale decided to figure out the answer. As reported in Bloomberg Business, PayScale calculated the return on investment (ROI) for 554 colleges and universities. The study examines both in-state and out-of-state tuition, and projects a 30-year return on investment.

It’s a fair question, with college tuition rising in South Carolina and elsewhere. How much is your college education really worth? What return should you expect on such a significant investment?

Here’s the ROI for publicly funded South Carolina universities:

PayScale used pay reports from an average of approximately 1,000 alumni from each school to determine net return. The 30-Year Net Return on Investment is in 2010 dollars and represents the average earnings of a graduate (above those of a high school graduate) after deducting the cost of the degree and adjusting for the school’s graduation rate. The 30-Year Net Return for Graduates is the same figure, but assuming a 100 percent graduation rate. Annualized ROI is based on the ratio of the earnings gain from a college degree to the cost of the degree; it takes into account the school’s graduation rate and includes wage inflation of 4.3 percent per year.


Written by Robert Appel

August 4, 2010 at 1:28 pm

Posted in Public education

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  1. […] it’s funny to think about the sort of world that would happen if the S.C. Policy Council would get its way. After all, the SCPC has seen little of any government – public sector – spending that it […]

  2. […] 28, 2010 10:57 am Some time back we wrote about a PayScale study that looked at the return on investment (ROI) for a college education at the […]

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