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Bogus Megapardus

Payscale 2014 College Cost ROI Rankings

Annual college cost ROI rankings from Payscale.com, for liberal arts colleges (Top 10):




carney2

Can anyone explain how the NET ROI is calculated?
Franks Tanks

carney2 wrote:
Can anyone explain how the NET ROI is calculated?


Average yearly earnings, or in this case estimated lifetime earning potential, divided by I believe the average cost of attendance.

State engineering shools like the Colorado School of Mines and Georgia Tech of course do very well in this calculation due to lower tuition costs for in state kids.  Everyone points out how the salary numbers may be dubious, but it shows that Lafayette College graduates tend to make a good living, and the school does a decent job making the school affordable for those with a demonstarted need.
carney2

Franks Tanks wrote:
carney2 wrote:
Can anyone explain how the NET ROI is calculated?


Average yearly earnings, or in this case estimated lifetime earning potential, divided by I believe the average cost of attendance.

State engineering shools like the Colorado School of Mines and Georgia Tech of course do very well in this calculation due to lower tuition costs for in state kids.  Everyone points out how the salary numbers may be dubious, but it shows that Lafayette College graduates tend to make a good living, and the school does a decent job making the school affordable for those with a demonstarted need.


All was my assumption until I performed the following calculation:

20 Year Net ROI ($605,500) / 20 yrs. = $30,275

Makes no sense.
Kpard

carney2 wrote:
Franks Tanks wrote:
carney2 wrote:
Can anyone explain how the NET ROI is calculated?


Average yearly earnings, or in this case estimated lifetime earning potential, divided by I believe the average cost of attendance.

State engineering shools like the Colorado School of Mines and Georgia Tech of course do very well in this calculation due to lower tuition costs for in state kids.  Everyone points out how the salary numbers may be dubious, but it shows that Lafayette College graduates tend to make a good living, and the school does a decent job making the school affordable for those with a demonstarted need.


All was my assumption until I performed the following calculation:

20 Year Net ROI ($605,500) / 20 yrs. = $30,275

Makes no sense.


Excludes Room and board?
Bogus Megapardus

Franks Tanks wrote:
it shows that Lafayette College graduates tend to make a good living, and the school does a decent job making the school affordable for those with a demonstrated need.


Actually I read it as showing how well Lafayette students do even without a demonstration of financial need.  The ranking posted excludes financial aid, If I'm not mistaken.  In other words, it assumes everyone pays full fare.

Pardsville still comes out on top.

Then again, it reflects a 20-year average.  Tuition was a lot less 20 years ago when cost difference between state schools and private schools was smaller.
Franks Tanks

Bogus Megapardus wrote:
Franks Tanks wrote:
it shows that Lafayette College graduates tend to make a good living, and the school does a decent job making the school affordable for those with a demonstrated need.


Actually I read it as showing how well Lafayette students do even without a demonstration of financial need.  The ranking posted excludes financial aid, If I'm not mistaken.  In other words, it assumes everyone pays full fare.

Pardsville still comes out on top.

Then again, it reflects a 20-year average.  Tuition was a lot less 20 years ago when cost difference between state schools and private schools was smaller.


So i guess I was completely wrong  Laughing
Bogus Megapardus

This is the 2014 payscale.com college cost ranking for LACs when financial aid is factored in to the equation:







Bottom line is that Lafayette is a wise choice whether or not you get financial aid.
Bogus Megapardus

Franks Tanks wrote:
Bogus Megapardus wrote:
Franks Tanks wrote:
it shows that Lafayette College graduates tend to make a good living, and the school does a decent job making the school affordable for those with a demonstrated need.


Actually I read it as showing how well Lafayette students do even without a demonstration of financial need.  The ranking posted excludes financial aid, If I'm not mistaken.  In other words, it assumes everyone pays full fare.

Pardsville still comes out on top.

Then again, it reflects a 20-year average.  Tuition was a lot less 20 years ago when cost difference between state schools and private schools was smaller.


So i guess I was completely wrong  Laughing


Nope - not wrong at all.  See the above post!

Funny how the same well-known schools are a good value no matter how you slice it.  These 10 schools clearly deserve their reputation!
Bogus Megapardus

Kpard wrote:
Excludes Room and board?


It includes room and board but it is a 20-year average.
carney2

I'm missing something.  There are two key words that everyone seems to be ignoring.  

The first is RETURN as in Return on Investment.  In my world, and perhaps oversimplifying, return is what you get, not what you spend.  Investment would be what you spend.  In my pea brain tuition, room and board cannot be part of Return.  They must be part of Investment.

The other word is NET.  Net of what?  What has been left out?  I believe that is a key element in this calculation.  My concept has it as net of investment.  In other words, you deduct the Investment (college costs?) from what you get in return (20 years worth of earnings) and divide it by the Investment (college costs) to determine a measure of how much you gained by making the investment.

The "tuition was lower 20 years ago" argument isn't getting it done in my mind.  Earnings were lower 20 years ago too.  The devil is in the details and we are not seeing the details here.

I'm no closer to understanding this than I was when Bogie first posted it.
Pard4Life

Some serious discounted cash flow and net present value calcs need to be done!

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