New Study Reveals ROI of over 30,000 Different Degrees

[alexf.1990]

https://freopp.org/we-calculated-return-...2f3c5e6dac

The methodology seems pretty sound. There is a link to the study in the link above, as well as a database so you can look up the ROI of programs you're interested in. So far, they've only studied undergraduate programs, but they are working on a similar study for graduate programs. The study found that your major is responsible for roughly half of the variance in post-graduate earnings.

I dug through the database and found some interesting things:

-Psychology is the most common major, but it mostly has a negative or insignificant ROI.

-Apparently its a bad idea to attend Harvard if you plan to major in Anthropology (-$636,564) or Ethnic, Cultural Minority, Gender, and Group Studies (--$524,317).

- They don't have alot of data on TESU, but WGU appears to have a mostly positive ROI, with the exception of their teaching program. The study was designed with traditional students in mind, with the opportunity cost of attendance being a major factor. I'm not sure that this study can accurate capture the value of alternative programs.

[bjcheung77]

COSC/UMPI are near the bottom of the list of ROI and their program list is much smaller than Excelsior/TESU/Walden. Wow, I am impressed with PUG (Fire protection eh?)/WGU, depending on the program you enroll in, anyways... Going to check out other schools mentioned here... I wonder if there are any really interesting ones...

[Alpha]

It's multi-faceted, complex and interesting topic.  I'm glad they've begun to look at it more closely.  College just costs too much not to ask "What am I getting for this?  What can I realistically expect?"  I have two criticisms of the process at this point.  The first is that it does not account for differences.  One person who gets an MBA at UMass might have an entirely different outcome than one of their classmates.  If we can not account for this difference then it becomes easy to believe that a random applicant has the same chance of variation.  The second criticism is that ROI is being measured solely in terms of money.  Personally, I believe that ROI has intangible elements as essential elements.  There should be some sort of "life satisfaction scale" built in to the measure.  My hope is that somewhere in the college experience there is room for some literature and history.  Maybe even some art or music.  I understand the drive for financial security and it has guided many of my personal decisions.  But that was only a portion of my motivation in attending college and my personal ROI would include more than just my income.

[alexf.1990]

It's multi-faceted, complex and interesting topic.  I'm glad they've begun to look at it more closely.  College just costs too much not to ask "What am I getting for this?  What can I realistically expect?"  I have two criticisms of the process at this point.  The first is that it does not account for differences.  One person who gets an MBA at UMass might have an entirely different outcome than one of their classmates.  If we can not account for this difference then it becomes easy to believe that a random applicant has the same chance of variation.  The second criticism is that ROI is being measured solely in terms of money.  Personally, I believe that ROI has intangible elements as essential elements.  There should be some sort of "life satisfaction scale" built in to the measure.  My hope is that somewhere in the college experience there is room for some literature and history.  Maybe even some art or music.  I understand the drive for financial security and it has guided many of my personal decisions.  But that was only a portion of my motivation in attending college and my personal ROI would include more than just my income.

It calculates the median income and costs, which is usually pretty accurate gauge of the average experience. They analyzed publicly available data. For privacy reasons, the DOE only publishes median data.

I agree that college should be about more than a financial return, but the primary reason for attending college is financial. This study gives students a good starting point for deciding on a school and major, and dispels a lot of the "just get a degree and you'll get a good job" propaganda thats common in our education system. People should follow their passions, but they should also be making informed decisions. I imagine a significant number of undergrads would find new "passions" once they find out how much money they're leaving on the table by pursuing it as a major.

[bjcheung77]

COSC/UMPI are near the bottom of the list of ROI and their program list is much smaller than Excelsior/TESU/Walden. Wow, I am impressed with PUG (Fire protection eh?)/WGU, depending on the program you enroll in, anyways... Going to check out other schools mentioned here... I wonder if there are any really interesting ones...

Update: In addition to the larger schools such as Liberty, Southern New Hampshire, and the DEAC schools such as Columbia Southern, Full Sail, Grantham, etc. It seems the "expensive, larger" and more known DEAC schools are on the list... Interesting to say the least, wow, some programs have great ROI and others really haven't provided any ROI...

[Alpha]

...I agree that college should be about more than a financial return, but the primary reason for attending college is financial...

For some people, especially people who are returning to school in order to get promotions, etc. then this is certainly the case.  But I'm less certain that this is the case for everyone.
What's The Purpose Of College? (forbes.com)

[alexf.1990]

...I agree that college should be about more than a financial return, but the primary reason for attending college is financial...

For some people, especially people who are returning to school in order to get promotions, etc. then this is certainly the case.  But I'm less certain that this is the case for everyone.
What's The Purpose Of College? (forbes.com)

Its not the case for everyone, but even your article acknowledges that obtaining a high quality career is "by far the most common reason" people mention when asked why they attend college. The other end of the spectrum is to be able to communicate clearly and develop critical thinking skills. The academy isn't doing too well there either...

[LevelUP]

IMO there are 3 main types of college degrees.

1. Liberal Studies:  Psychology, History, English, communications, etc.

People that make good money have creative talent, are good communicators and know how to work with people. 

2. Computer Studies:  IT, Computer Science, Software Engineering, etc.

This field requires lifelong learning, a high level of productivity, and the ability to solve complex problems.

3. Business Administration: Marketing, Leadership, Finance, etc.

The more money you generate for the company and/or more responsibility you have, the more money you can make.

If you spend $5000 on a degree you can make that money back in a year so the ROI is pretty huge for people on DF.

[Alpha]

I would add two other categories.  One would be the basic Sciences such as Physics, Chemistry and even Mathematics.  All that evolves into Engineering and even Computer Science.  I'd also add the various Health Sciences, beginning with Biology, MicroBio, Nursing and other Medical Sciences.

[nomaduser]

I would rank them by salary.

#1 Computer Science, Engineering, Nursing

They make the top salaries (70k - 100k)

#2 Economics, Mathematics, Business, Finance

They make mid-tier salaries (50k - 70k) but they can reach the top salary range after some years.

#3 Music, Fine Arts, Film, Dance, Performing Arts, History, English, Biology, Art Management, Nutrition Science

They make the lowest salaries (15k - 30k). They can reach mid-tier salary after some years.

I think only the rank 1, 2 degrees are truly valuable as degrees.
Other degrees will make you suffer from low income for a while. Personally, I think the rank 3 degrees should be considered only when you have a guaranteed high-paying job contract. If not, don't even bother with the rank 3 degrees. You'll hurt yourself.

Music, dance, history, film should be your hobbies, not your college degrees. They don't worth any money as college degrees... if you don't become a star novelist or hollywood actor, you'll end up making the same salary as people who never went to any college. The schools should be obliged to put a warning sign on the college applications for those majors.

There are always exceptions .. but if your goal is getting degree and high paying job, I would consider only the high salary degrees.