Public Colleges Will See Higher ROI Than Private Colleges By 2025

return on investment on your college degreeWhat influences your college decision? For many students, the cost of a higher education plays a huge role in this process.

According to a recent study, the financial return on investment of a college education will continue to increase in the next 10 years, but at very different rates for public and private colleges. By 2025, it is estimated that the 20-year net ROI (that’s “return on investment”) of a bachelor’s degree at a private school will rise 4 percent, whereas the 20-year net ROI of a degree at a public school will rise 17 percent.This may be in part because the sticker price of tuition at private schools is generally higher than those at public schools.

The findings come from online salary database, PayScale, which forecasted the college return on investment for a bachelor’s degree at both public and private colleges through the year 2025. This study aims to identify how much more a college graduate will earn in the next 20 years as compared to a worker with only a high school education.

The value of a college education will continue to rise in the next 10 years, cite the study’s authors, but if costs continue to rise at current rates, the median college ROI from public colleges is outpacing that of the median ROI at private colleges by 24 percent. As the cost of a college education increases, it becomes even more important that students factor cost, career goals, and projected alumni outcome data into their decisions around their college decision.

Will such surveys change the way you consider your college choices?

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