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Top Online Schools with Greatest ROI


ROI-online-schoolsROI (Return on Investment) is a jargon that is getting famous among the students. In this state of economic declines and recession every student seems eager to investigate about the educational returns. A Question that hits the mind of students is: Will our education act as a source of unlocking the hidden treasures of money?

Earning a degree is congruent to investing the money and time in order to get a better and superordinate career. An investment is done in order to pursue some peculiar objectives. Likewise investing in education is meant for gaining knowledge and fulfilling the career objectives.

The numbers of unemployment are increasing and graduates have to tackle a serious job hunt in order to get reasonable jobs. If a college degree does not possess potential to become a source of good earning for a graduate, then such a degree is unlikely to lead to a successful career. A lot of time and money is injected in order to get the most out of education. Some students also need to bear the onus of massive loans to meet the expenses of education. If the degree is unlikely to payback the expected returns, then it means that graduates merely leave the college with an encumbrance of student loans and disappointments.

The graduate degrees of far-famed and widely esteemed institutions possess the potential of developing an affinity for good jobs and better careers. It is an obligation of the students to find such educational institutions, the degrees of which provide a career growth.

ROI is an important abstraction which provides a breakthrough of the worth that is implied in the degree of a particular online school, college or university. Finding ROI of the school is just like having a cost-benefit analysis. Using ROI, an assessment is done whether the earnings from the degree would allow the students to outstrip or surmount the costs of getting the degree.

ROI can simply be delineated as the return expected from surfing money and time on education. If ROI of a school falls in higher numbers then it connotes that the graduation degree of that particular school is a value for money. Conversely if students engage with a school having low ROI then they have to face hideous thwarts.

ROI can simply be described as the return expected for surfing money and time on education. In order to calculate ROI, two things must be known.

  1. Investment in college: Investment in college is the cash outflow to earn a college degree.
  2. Return from attending the college: It is the expected cash inflow after being a college graduate.
Calculating an ROI is not a rocket science. Technically, two different measures are adopted in order to calculate, both of them can give a fare idea about the return on investment of education.
  1. 30 years net ROI
  2. Annual ROI


Calculation of 30 years net ROI of Education

Earnings Differentials  (earnings differential is the 30 years median - average pay) minus Weighted cost of graduation (weighted cost is the cost utilized for graduation from high school to graduation), the resulting figure is then multiplied with the graduation rate to get EXACT 30 years net ROI. Lets have a look at following image for better understanding.

ROI Calculation


Note: earnings differential is the 30 years median pay for say 2010 graduate and 34-36 years pay for say 2011 high school graduate. Weighted cost is the cost utilized for 2011 high school graduate.


Calculation of Annual ROI:

Expected value of Earnings Differentials Divided by Weighted cost for 2011 graduate, the resulting figure gives the Annual ROI.


Following list is likely to provide information about top 10 schools with remarkable ROIs.


Rank School Type Category 2011 Cost 30 Year Net ROI Annual ROI
1 Harvey Mudd College Private Liberal Arts, Engineering $212,900 $1,467,000 11.2%
2 California Institute of Technology (Caltech) Private Private Research, Engineering $207,400 $1,417,000 11.2%
3 Massachusetts Institute of Technology (MIT) Private Private Research, Engineering $208,100 $1,238,000 10.7%
4 Stanford University Private Private Research $220,200 $1,194,000 10.4%
5 Princeton University Private Private Research, Ivy League $205,600 $1,163,000 10.6%
6 Harvard University Private Private Research, Ivy League $210,400 $1,115,000 10.4%
7 Dartmouth College Private Private Research, Ivy League $212,000 $1,102,000 10.3%
8 Duke University Private Private Research $210,900 $1,060,000 10.2%
9 University of Pennsylvania Private Private Research, Ivy League $212,800 $1,001,000 10.0%
10 University of Notre Dame Private Private Research $203,500 $978,800 10.1%
11 Babson College Private Business $208,100 $970,600 10.0%
12 Lehigh University Private Private Research $202,800 $900,900 9.8%
13 Cornell University Private Private Research, Ivy League $209,600 $857,500 9.6%
14 Colorado School of Mines Public Engineering $99,460 $851,700 11.9%
15 Columbia University Private Private Research, Ivy League $217,100 $845,100 9.4%
16 Worcester Polytechnic Institute (WPI) Private Private Research, Engineering $208,600 $842,900 9.6%
17 Georgia Institute of Technology Public  Engineering $82,340 $836,000 12.5%
18 Colorado School of Mines Public Engineering $160,800 $810,600 10.2%
19 Manhattan College Private Private $158,300 $802,900 10.2%
20 Rensselaer Polytechnic Institute (RPI) Private Private Research, Engineering $215,300 $799,900 9.3%
21 University of California, Berkeley Public Public $118,200 $790,100 11.1%
22 Lafayette College Private Liberal Arts $203,700 $788,900 9.4%
23 Brown University Private Private Research, Ivy League $210,500 $787,600 9.3%
24 Stevens Institute of Technology Private Private Research, Engineering $231,800 $785,000 9.0%
25 Carnegie Mellon University (CMU) Private Private Research $221,100 $779,400 9.2%
26 Georgia Institute of Technology Public Engineering $165,100 $770,700 10.0%
27 Claremont McKenna College Private Liberal Arts $211,700 $764,600 9.2%
28 Santa Clara University Private Private $209,300 $753,700 9.2%
29 Amherst College Private Liberal Arts $210,100 $740,400 9.2%
30 Rice University Private Private Research $183,400 $737,800 9.5%
31 Rose-Hulman Institute of Technology (RHIT) Private Engineering $197,000 $737,600 9.3%
32 Yale University Private Private Research, Ivy League $214,400 $720,800 9.0%
33 Colgate University Private Liberal Arts $209,700 $718,000 9.1%
34 Villanova University Private Private $204,400 $711,400 9.1%
35 University of California, Berkeley Public Public $209,500 $707,900 9.0%
36 Georgetown University Private Private Research $220,200 $703,100 8.9%
37 Case Western Reserve University Private Private Research $205,700 $680,300 9.0%
38 Union College, New York Private Liberal Arts $207,500 $662,100 8.9%
39 Williams College Private Liberal Arts $205,400 $654,900 8.9%
40 College of the Holy Cross Private Liberal Arts $200,200 $647,100 8.9%
40 University of California, San Diego (UCSD) Public Public $107,000 $647,100 10.8%
42 Tufts University Private Private Research $212,500 $644,600 8.7%


Source: payscale.com

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