Image above: Duke University Chapel, Durham, North Carolina
Make the Right Decisions for College, Get the Biggest Bang for your Buck
Mitch Daniels, President of Purdue University, discusses the current job market for college graduates on CNBC's Squawk Box.
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Below: Average starting salaries by major for those with bachelor's degree. (Source: National Association of Colleges and Employers via CNBC)
College Major Regrets
Students should pick their majors wisely. The salary disparity across chosen majors has a long-term abrading effect on certain degree-holders; many later regret their choice of major because of poor salary potential. A ZipRecruiter report published this month (November 2022) presents the most loved and the most regretted majors. The report stated:
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Below: The top 10 most regret-free college majors. Source: ZipRecruiter
(click to enlarge)
Below: The top 10 most regretted college majors. Source: ZipRecruiter
(click to enlarge)
Is College Still Worth the Cost?
Even with increasing costs, college degrees continue to be worthwhile. According to a Georgetown University report (2011), a bachelor's degree is worth as much as $2.8 million on average over a lifetime. And, bachelor's degree recipients generally earn 84% more over a lifetime than those with just a high school diploma.
Below: Average lifetime earnings with bachelor's degree compared to other education levels. (Source: Georgetown University, Center on Education and the Workforce report, The College Payoff)
Many in the education industry now tell students looking a higher education to get the best value for their money by researching the cost-reward equation on the field of study (the Major) and the institution (College or University) issuing the degree.
Below: Examples of how different degrees pay across occupation groups. (Source: Georgetown University, Center on Education and the Workforce report, The College Payoff)
Return on College Investment: the Institution's ROI
Determining the average lifetime income based on a major is one thing, but does it matter where the degree comes from? Can a degree from one college be more valuable than from another college? Conventional wisdom is likely to show that a job candidate with an Ivy League diploma is more likely to beat out a State University graduate.
But does a degree from a State University or small private college have better value?
Answer: in many cases, it does.
The ROI on Specific Colleges
Georgetown has another report called Ranking 4,500 Colleges by ROI (2022). This is a return on investment scorecard based on colleges and universities attended. This report ranks schools by average earnings every ten years after graduation (10, 20, 30, and 40-year milestones) and compares income against the cost of attendance (tuition, fees, books, living expenses, minus any aid provided to students).
The ROI rankings are remarkable. A simple query of four-year schools in California presents a surprising ROI for a small private university, Harvey Mudd College. This college ranked #2 for return on investment, besting Stanford University, University of Southern California and University of California, Berkeley. The average 40-year Net Present Value (NPV) for a Harvey Mudd graduate is $2.37Mil. The only university in California to best Harvey Mudd is the California Institute of Technology having a 40-year average NPV of $2.49Mil.
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