Education ROI

The story: Two programs, one choice

Maya and a school counselor weigh two health care programs on a scale, using cost, finish rates and pay.

1. Narrator: Maya wants to work in health care. Two programs could get Maya there.
2. Maya: Program A costs more but sounds impressive. Program B is cheaper and shorter.
3. Teacher: Look past the name. What does each cost in total, how many students finish, and what do graduates earn?
4. Narrator: Return on investment, or ROI, compares what you get back with what you put in.
5. Narrator: Finishing matters too. Debt without a finished credential is the hardest kind to repay.
6. Maya: So I compare total cost, finish rate and first-year pay. Then I decide how much to borrow.
7. Narrator: Borrow less than you expect to earn your first year.

What you’ll learn

1. School as an investment

   Return on investment (ROI) compares what you get back with what you put in. For school, that means total cost and time, compared with the pay and options it’s likely to bring.

2. Check completion rates

   A program only pays off if you finish. The completion rate shows how many students graduate. Debt with no credential is the hardest kind to repay.

3. Program, not just school

   Earnings differ a lot by program, not just by college. Two majors at the same school can lead to very different pay. College Scorecard shows costs and graduates’ earnings by program.

4. A borrowing rule of thumb

   A common rule of thumb: keep total student loans at or below your expected first-year pay after school. Debt-to-income compares what you owe with what you earn.

   Example: expected first-year pay of $45,000 means borrowing $45,000 or less in total.

Key words

ROI

return on investment: what you get back compared with what you put in

completion rate

the share of students who finish a program

debt-to-income

what you owe compared with what you earn

Common questions

Is ROI the only reason to pick a program?

No. Interest, skills, location and family needs matter too. ROI helps people see the money side clearly before they decide.

Remember this

Borrow less than you expect to earn your first year.

Try it: Compare two programs

1. Pick two programs that interest you, at the same or different schools.
2. On College Scorecard, find each one’s cost, completion rate and graduates’ earnings.
3. Write which has the stronger return, and why.

The whole mission; no account or app needed.

Live facts

Numbers that change over time, with when they were last checked and where they come from.

• Program costs, completion rates and graduates’ earnings

  Source: College Scorecard (U.S. Department of Education)(opens in a new tab)