The ROI of Higher Education

BROUGHT TO YOU BY EASYFINANCE.COM HOW MUCH DOES A DIPLOMA COST? ROIof HOW MUCH IS IT ACTUALLY WORTH? The HIGHER EDUCATION RETURN ON INVESTMENT IN THE TIMES OF FINANCIAL CRISIS, MANY PEOPLE QUESTION THE IMPORTANCE OF HIGHER EDUCATION. WHILE SOME BELIEVE THAT GOING TO COLLEGE IS BOUND TO PAY OFF IN THE FUTURE, OTHERS STATE THAT YOU CAN SUCCEED WITHOUT A DEGREE. How MUCH DOES HIGHER EDUCATION COST? AND CAN YOU REALLY PUT A PRICE TAG ON EDUCATION? THE COSTS ASSOCIATED WITH HIGHER GENERAL INFO EDUCATION CONSTITUTE 3% OF GDP. THERE ARE 19.7 MILLION STUDENTS IN THE U.S. 11.2 MILLION 8.5 MILLION శ శ్ ల్ ల్ క్ ర్ర్ ల్ COST ROOM AND BOARD 439% EACH YEAR PRIVATE 200% SCHOOLS CHARGE OVER $50,000 FOR ROOM, BOARD, TUITION AND TUITION. 1982 2011 1982 2011 TOTAL COSTS FOR ONE YEAR THE COST OF POST SECONDARY EDUCATION IS SKYROCKETING AND THE ODDS ARE THIS TREND WILL CONTINUE. COLLEGE FEES VARY SUBSTANTIALLY AND DEPEND ON THE FOLLOWING FACTORS: PRIVATE 4-YEAR PUBLIC 4-YEAR (OUT OF STATE) $31,915 THE AVERAGE COST OF A PRIVATE COLLEGE REACHES $25,892 PUBLIC 4-YEAR $17,227 IN STATE) PUBLIC 2-YEAR $31,915 A YEAR WITH (OFF-CAMPUS HOUSING) ADDITIONAL $6,653 IN $9,541 HIDDEN COSTS. Low QUALITY EDUCATION AT A HIGH PRICE! 45% OF STUDENTS MAKE NO GAINS IN THEIR CRITICAL REASONING, THINKING SKILLS, WRITING ABILITY. ADDITIONAL ANNUAL EXPENSES $2,200 $1,137 $1,000 TUITION FEES ARE NOT THE WHOLE STORY, YOU SHOULD TAKE INTO ACCOUNT A SERIES OF OTHER EXPENSES. HEALTH FEES Воoкs COMPUTER $826 $520 $500 $230 CLOTHING & SERVICES BoozE AUTO COSTS SPORTING EVENTS HOW A TYPICAL FAMILY PAYS FOR COLLEGE* *TOTAL COST, AVERAGE AMOUNT STUDENT BORROWING $4,907 $5,692 PARENT BORROWWING $2,721 $3,396 PARENT INCOME & SAVINGS 2009 2010 $1,775 $2,261 STUDENT INCOME & SAVINGS $6,934 $8,752 RELATIVES & FRIENDS $1,996 $2,314 $19,432 GRANTS & SCHOLARSHIPS $1,099 $1,682 $24,097 PERCENTAGE 2009 OF TOTAL COST 2010 23% 14% 10% GRANTS & SCHOLARSHIPS 7% STUDENT BORROWING PARENT BORROWING O PARENT INCOME & SAVINGS STUDENT INCOME & SAVINGS 9% 37% RELATIVES & FRIENDS DEBT 2/3 OF 2010 GRADUATES FINISHED STUDENTS GRADUATE WITH AN AVERAGE DEBT OF THEIR STUDIES WITH STUDENT DEBT. THIS AMOUNT HAS GROWN OVER 50% DURING THE PAST DECADE. 45% OF $25,250 STUDENTS DON'T GRADUATE AND ARE LEFT WITH A HUGE DEBT WITH NO DEGREE TO SHOW FOR IT. 511% STUDENT LOAN DEBT HAS INCREASED BY 511% SINCE 1999. EMPLOYMENT / UNEMPLOYMENT HOME, SWEET HOME. 85% OF COLLEGE UNEMPLOYMENT RATE FOR GRADUATES MOVE NEW COLLEGE GRADUATES BACK IN WITH OF 2010 is 9.1% - THE THEIR PARENTS. HIGHEST IN RECENT YEARS. EMPLOYMENT STATUS OF COLLEGE GRADUATES WORKING IN JOBS WORKING IN JOBS NOT WORKING THAT DON'T REQUIRE 21.2% THAT REQUIRE A COLLEGE DEGREE A COLLEGE DEGREE 68.5% 10.3% 22.4% COMPUTER SCIENCE, 55.6% MATH MAJORS 25.2% 22% ALL GRADUATES 45.4% THERE'S A WIDESPREAD MISCONCEPTION THAT 29.4% PEOPLE WITHOUT HIGHER EDUCATION ARE ON THE SLIPPERY SLOPE TO UNEMPLOYMENT AND DEGREE HOLDERS ARE ON THEIR WAY UP THE HUMANITIES MAJORS CAREER LADDER. HOWEVER, THIS IS NOT NECESSARILY THE CASE. ALMOST ¼ OF COLLEGE GRADUATES ARE CURRENTLY UNEMPLOYED. A HIGH SCHOOL DROPOUT WILL EARN ABOUT $260,000 LESS THAN A HIGH SCHOOL GRADUATE AND $800,000 LESS THAN A COLLEGE GRADUATE IN THEIR LIFETIME. $. MARK ZUCKERBERG BILL GATES STEVE JOBS MICHAEL DELL You MIGHT BE TEMPTED TO THINK THAT IT IS HOWEVER - AS PROMISING AS IT SOUNDS - FOR EASY TO BECOME A BILLIONAIRE THESE DAYS. EVERY SUCCESSFUL BUSINESSMAN WITH NO IT IS TRUE THAT SOME OF THE WORLD'S RICHEST DEGREE, THERE ARE THOUSANDS OF PEOPLE ENTREPRENEURS HAVE NO HIGHER EDUCATION, STRUGGLING TO FIND THE JOB OF THEIR DREAMS. MEDIAN ANNUAL INCOME COMPUTER SCIENCE, ALL GRADUATES HUMANITIES MATH MAJORS MAJORS $27,756 $34,100 $20,953 $15,896 $14,051 $17,561 THE NUMBERS CLEARLY SUGEST COLLEGE DEGREE REQUIRED THAT IT PAYS OFF TO STUDY MATHS COLLEGE DEGREE NOT REQUIRED AND COMPUTER SCIENCE. THE AVERAGE ANNUAL ROI RANGES FROM 4.5% TO 12.2% DEPENDING ON *ACCORDING TO PAYSCALE'S THE TYPE OF COLLEGE*. COLLEGES WORTH OUR INVESTMENT RANKING WAY TO GO DEAD END BEST PAYING MASTER DEGREES IF BEING AN EDUCATED UNEMPLOYED IS NOT YOUR IDEA OF FUN, MAKE SURE GEOLOGY YOU AVOID THE 'DEAD END' DEGREES. NURSING PUBLIC HEALTH 10 MAJORS WITH HIGHEST UNEMPLOYMENT ARE: BUSINESS ADMINISTRATION BIOLOGY CLINICAL PSYCHOLOGY, MISCELLANEOUS FINE ARTS, UNITED STATES HISTORY, MEDICINE LIBRARY SCIENCE, MILITARY TECHNOLOGIES, BUSINESS EDUCATIONAL PSYCHOLOGY, ARCHITECTURE, PHYSICAL THERAPY INDUSTRIAL AND ORGANIZATIONAL ECONOMICS PSYCHOLOGY, MISCELLANEOUS PSYCHOLOGY, CIVIL ENGINEERING LINGUISTICS & COMPARATIVE LITERATURE THERE ARE NO QUICK-FIX SOLUTIONS, IT ALL DEPENDS ON WHICH CAREER PATH YOU WANT TO PURSUE. ANOTHER QUESTION YOU SHOULD ASK YOURSELF IS WHETHER A PARTICULAR PROFESSION IS INEXTRICABLY CONNECTED WITH A UNIVERSITY DIPLOMA AND WHETHER YOU ARE PREPARED TO BEAR THE BURDEN OF DEBT. THE END BROUGHT TO YOU BY EasyFinance.com Guide to Consumer Financial Products SOURCES: http://www.nytimes.com/2011/05/19/business/economy/19grads.html?_r=1 http://www.nytimes.com/2011/11/03/education/auerage-student- loan-debt-grew-by-5-percent-in-2010.html http://www.brookings.edu/opinions/2011/0603_jobs_greenstone_looney.aspx http://www.theatlantic.com/business/archive/2011/08/chart-of- the-day-student-loans-haue-grown-511-since-1999/243821/ http://money.cnn.com/2010/10/14/pf/boomerang_kids_moue_home/index.htm http://www.usneuws.com/education/blogs/the-college- solution/2011/05/03/higher-education-bubble-uill-burst http://chronicle.com/article/Will-Higher-Education-Be-the/44400 http://www.thefiscaltimes.com/-/-/media/Fiscal- Times/Research-Center/Personal-Savings/2010/08/10/how_america_pays_for_ college.ashx?pid=%7B248E1F95-BO53-4E28-958E-C1BF98962B03%7D http://www.onlinedegrees.org/best-paying-jobs-in-2011/ http://www.cbsnews.com/8301-505145 162-57325132/25-college- majors-with-the-highest-unemployment-rates/ http://nces.ed.gou/fastfacts/display.asp?id=372 http://www.businessweek.com/interactive_reports/bs_collegeROI_0621.html © 2012 EasyFinance.com %24