When I was in high school, my teachers told me to search for colleges by size, location, and SAT score requirements. No one ever said anything about return on investment (ROI).
But college is one of the most expensive things you’ll pay for — make sure you’re getting enough bang for your buck.
Why should you care about ROI?
These days, college is more expensive than ever. According to College Board, the average yearly cost of tuition and fees at a private college is $32,410. In-state residents pay $9,410 at public universities, and out-of-state students pay $23,890.
That’s a hefty price tag, and most of us take out student loans to pay for it. After graduating, we need to start paying those loans back.
To make smart financial decisions, think of those loans as an investment. You’re investing in your education now to open up opportunities and get a fulfilling job in the future.
10 best value colleges in the U.S.
What choices can you make to see the best return on your investment? One could be to choose a college with a high ROI.
According to Payscale’s 2016 College ROI Report, these schools rank highest for the best ROI colleges. Drawing on 962 schools, Payscale compared the total cost of attendance (including tuition, fees, room and board, books, and supplies) with graduates’ net ROI after 20 years.
1. California Institute of Technology (CalTech)
The full cost of attendance over four years at CalTech is $230,000, but the 20-year net ROI is $973,000. CalTech is ranked #12 nationally by US News.
In the class of 2020, students scored an average between a 2240 and 2340 on the SAT, and 99 percent graduated in the top 10 percent of their high school classes.
2. Massachusetts Institute of Technology (MIT)
Four years at MIT costs $232,000, and graduates had a 20-year net ROI of $972,000. The college ranks #7 in the country, so most students who get in have top SAT scores and grades.
3. Harvey Mudd College
Four years at Harvey Mudd comes with a price tag of $249,000, and graduates have a net ROI of $945,000. This California college is ranked 21st nationwide.
4. SUNY Maritime College (for both in-state and out-of-state students)
SUNY Maritime is the highest-ranked state school on the list. It’s one of six maritime universities in the U.S. and has 11 undergraduate majors, including engineering, humanities, science, and global business and transportation.
The full cost of attendance is $89,000 for New York residents and $126,000 for out-of-state students. Graduates end up with a 20-year net ROI between $908,000 and $945,000.
5. Stanford University
Stanford is one of the priciest colleges on the list with a four-year cost averaging $240,000. Its graduates net an ROI of $854,000 after 20 years. Its undergraduate admission rate is extremely competitive, at only 4.8 percent.
6. Colorado School of Mines (for in-state students)
The Colorado School of Mines is an engineering school that focuses on geosciences. On average, applicants have an SAT score of 1320. The full cost of four years is $118,000 with a 20-year ROI of $846,000.
7. Georgia Institute of Technology (for in-state students)
For residents of Georgia, four years at the Georgia Institute of Technology costs $91,500. Over 20 years, their net ROI is $833,000. From its applicant pool, the college admits 26 percent.
8. Princeton University
This competitive Ivy League school admits just 6.5 percent of applicants. It has a four-year price tag of $224,000 and a 20-year net ROI of $820,000.
9. Carnegie Mellon University
Carnegie Mellon has the highest price tag on this list, ringing in at $243,000. Graduates go on to net an $811,000 ROI after 20 years.
10. University of California, Berkeley
Finally, UC Berkeley costs $133,000 for California residents, who go on to have a net ROI of $806,000. The school is ranked 20th nationally, and it has a variety of undergraduate and graduate programs.
Unsurprisingly, several of these best value colleges have strong science, technology, engineering, and math offerings, but some liberal arts schools made the top 10, as well.
It’s important to note that not everyone pays the full price of attendance. Most schools offer financial aid and scholarships to reduce the cost. College ROI is a useful metric, but the data may not apply to your specific financial situation.
Does college ROI really matter?
If you’re investing thousands of dollars and four years of your life into college, then you should definitely consider your possible return on investment.
These best value colleges set students up for success in their later careers, but they’re not the only schools that give students a solid return on investment.
There are lots of colleges that will give you a great education and help you achieve your goals. To some extent, a college degree is what you make of it. You should use these years to learn new things, pursue your passions, and set professional goals.
You should also develop marketable skills that will help you land a job after graduation. That way, you’ll be able to pay back your student loans once the grace period ends.
For more on choosing a field of study that pays, check out these seven college majors with the highest return on investment.
How to find the best value colleges for you
There are lots of factors to think about when choosing a college, including size, location, SAT scores, grades, majors, and financial aid. Given the high cost of tuition, return on investment should also join that list.
Thinking about college ROI early will also help you get a job you want. According to the Federal Reserve Bank of New York, 45 percent of recent college graduates are underemployed. That means almost half of recent grads hold jobs that don’t require a Bachelor’s degree at all.
Why invest in a college degree if you can’t use it? While economic forces are out of your control, you can choose where you apply to college and what major you pursue.
Need a student loan?
Here are our top student loan lenders of 2020!| Lender | Variable APR | Eligibility | |
|---|---|---|---|
| * The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers. 1 Important Disclosures for College Ave. CollegeAve DisclosuresCollege Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. (2)This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. (3)As certified by your school and less any other financial aid you might receive. Minimum $1,000. Information advertised valid as of 11/4/2019. Variable interest rates may increase after consummation. 2 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply. 3 Important Disclosures for Discover. Discover Disclosures
4 Important Disclosures for CommonBond. CommonBond DisclosuresOffered terms are subject to change and state law restrictions. Loans are offered through CommonBond Lending, LLC (NMLS #1175900).
5 Important Disclosures for Citizens. Citizens DisclosuresUndergraduate Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of December 1, 2019, the one-month LIBOR rate is 1.70%. Variable interest rates range from 2.80% – 11.06% (2.80% – 10.91% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 4.72% – 12.19% (4.72% – 12.04% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown requires application with a co-signer, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan. Please Note: International Students are not eligible for the multi-year approval feature. |
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 | 2.84% – 10.97%1 | Undergraduate, Graduate, and Parents | |
 | 2.87% – 10.75%*,2 | Undergraduate and Graduate | |
 | 2.80% – 11.37%3 | Undergraduate and Graduate | |
 | 3.52% – 9.50%4 | Undergraduate and Graduate | |
 | 2.80% – 11.06%5 | Undergraduate and Graduate | |
