Issues College ROI Report

In Paying for College on May 24, 2016 issued a new College ROI Report, which shows that borrowers with the lowest income are more likely to have higher monthly student loan payments.

The PayScale report also found that college graduates who came from low-income households are less likely to have a higher income after graduation. Only 18 percent of students from families with the lowest household income (bottom quartile) end up with mid-career income in the top quartile, compared with 39 percent of students from families with the highest household income (top quartile). They are more than twice as likely to end up in the bottom quartile (33 percent vs. 15 percent).

PayScale predicts that public university alumni will see much higher college ROI as compared with private colleges in the next decade, if current trends continue. The improvements are both on a percentage and dollar return on investment basis.

According to PayScale, the overall best value colleges by dollar ROI are Caltech and MIT, followed by Harvey Mudd College and SUNY Maritime College. This may be influenced, in part, by these colleges disproportionately enrolling and graduating students in Science, Technology, Engineering and Mathematics (STEM). For students in the humanities, the best value colleges are SUNY Binghamton, University of Virginia, George Mason University and UC Berkeley.

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