New Study Ranks California #3 on College ROI.
Strata Education Foundation is a nonprofit, founded in 2010, dedicated to strengthening the connection between education and career opportunities. They publish an annual report on the return on investment of higher education.
“Access and completion, while valuable, have not been enough to consistently deliver on the promise of postsecondary education as a pathway to opportunity,” said Stephen Moret, Strata President and CEO, who believes we are now entering a new era of “success beyond completion, with a sharper focus on helping people land jobs that pay well and offer growth opportunities.”
According to Strata’s calculations, nationwide, 73% of bachelor’s degree candidates can expect to experience a positive ROI on their education investment. What’s that mean? Not only do those graduates earn more than their peers without a degree, but they earn enough extra to recoup every cent they spent on their education within 10 years. After that, it’s pure profit.
Of note, other students did not “lose money” on their degree — it just means it typically took them a little while longer to earn back the cost.
Here’s even better news…
In California, the ROI for a bachelor’s degree was 78%. In fact, our state ranked third in the nation for providing a positive ROI for college education. That is a result of not only all the work California is doing to make college high-quality and affordable, but also the large premium California employers place on higher education.
Other leaders in the College ROI scorecard include Washington, D.C. (82%) and New York (80%); scores were also strong for Texas (75%), Florida (74%), and Arizona (74%). In fact, many of the states with strong, growing economies are also the ones that deliver a high ROI on a degree.
Not just college…
Of note, California was also a leader when it came to providing a positive ROI for graduate degrees, associate degrees — and even nondegree and noncredit postsecondary education and training programs. So, no matter what education option you pursue, California provides strong opportunities.
What you can do…
Strata doesn’t just report on how many people have a positive ROI on their college education — they took a research-based approach to unpacking what makes college worthwhile. Based on that analysis, they have published “Strata’s 5 Keys to Success in Connecting Education with Opportunity.”
Based on those findings, here are 5 things you can do to help make sure college has a positive ROI for your beneficiary:
- Clear Outcomes: Do your homework and understand the potential earnings and career outcomes of every program you consider.
- Quality Coaching: Tap into available “education to career coaching” that can help you align your talents and interests with a career goal. Map out potential pathways and get help navigating challenges.
- Affordability: If you’re thinking about the cost-benefit of college, there’s a lot you can and should do to manage costs, including choosing programs wisely and minimizing dependence on debt.
- Work-Based Learning: Look for opportunities like paid internships and apprenticeships to help connect your education to your career aspirations.
- Employer Alignment: Consider which programs not only help you secure your first job but also give you the skills and capabilities for upward mobility throughout your career.
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