Public or Private University ?
What is the ROI of your university? Not all schools are equal. Let’s take a look at a recent study done by Bloomberg.
Right now, seniors around the world are making the arduous decision of which school is the best fit for them. I usually recommend that students answer that question with these four key objectives in mind.
Best academic fit
Best social fit
Best financial fit
Best geographical
While all of these are important, price is beginning to take the lead in this list. At many schools in the country, a Bachelor’s degree can cost over a quarter of a million dollars. Many people believe that if you’re not attending an Ivy then a public university is the best return on your financial investment.
Paulina Cacherro and Francesca Maglione did a study looking into return on investment calculations for more than 1,500 four-year nonprofit colleges. I find the study and their results fascinating.
“The data — provided by Georgetown University’s Center on Education and the Workforce — showed students should really think twice about a costly brand-name degree if they don’t get into an Ivy. A degree from a so-called “Hidden Ivy” — a list of 63 top schools — 10 years after enrollment is worth about $135,000, compared to $265,500 at a typical Ivy League school. And interestingly, public flagships, or the most prominent universities in every state, seem to be the safer bet. They have a median 10-year ROI of $148,000 .The figures took into consideration graduate’s median earnings and the average net price students pay to enroll. USC returns about $170,000 on average. That’s pretty good. But a number of other private elite schools had ROIs I found shockingly low — like Oberlin College at just $18,000.”
While this study offers insight into the extreme costs of education, there are many “reasonable” options when it comes to affordability. Here are a few:
- Imagine Scholarships – the best place to find quality scholarships and we never sell your information.
- Schools that you can go to for free
- Work for a company who will pay for your education
- Dual Credit Courses offer a big ROI
- Work / Study Program
- Alternate options such as Straighterline or Study.com
- Attend a Junior College
- Get a certification
Determining whether a public or private university offers the best return on investment (ROI) depends on various factors, including tuition costs, financial aid opportunities, graduation rates, and post-graduation earnings. Here’s a breakdown of considerations for each type of institution:
- Tuition Costs: Public universities generally have lower tuition costs for in-state residents compared to private universities. However, out-of-state tuition at public universities and tuition at private universities can be similar.
- Financial Aid: Both public and private universities offer financial aid, including scholarships, grants, and loans. Private universities may have more resources for need-based aid, potentially reducing the overall cost for some students.
- Graduation Rates: Graduation rates can impact the ROI of a university education. Public universities often have higher dropout rates, which can prolong the time to degree completion and increase costs. However, some public universities with strong support programs and resources may have higher graduation rates.
- Post-Graduation Earnings: The earning potential after graduation can significantly impact ROI. Some private universities have strong alumni networks and connections that can lead to higher-paying job opportunities. However, this can vary widely among institutions and majors.
- Career Services: The quality of career services and job placement assistance can also affect ROI. Universities with robust career centers and internship programs may better prepare students for the workforce.
- Networking Opportunities: Private universities often have smaller class sizes and closer-knit communities, which can lead to stronger networking opportunities. These connections can be valuable in securing internships and jobs after graduation.
- Quality of Education: The quality of education can impact your long-term success and earning potential. Both public and private universities can offer high-quality education, but factors such as faculty-to-student ratio, research opportunities, and resources can vary.
Ultimately, the best ROI will depend on your individual circumstances, including your financial situation, career goals, and personal preferences. It’s essential to research and compare universities based on these factors to determine which option aligns best with your needs and goals.