Earning a college degree requires a significant investment of both time and money. According to the College Board, the average cost of tuition and fees for the 2013-2014 school year is $ 30,094 in private colleges, $ 8,893 for state residents in public colleges, and $ 22,203 for overseas residents of state universities.
The reason for investing in college is, of course, the expected result. According to a Georgetown University center on Education and Labor, undergraduate degree holders can expect a lifetime income of up to $ 2.3 million, almost double the number of workers with a high school diploma. Obviously, investment in college will pay off in the long run. However, how much you pay depends on how smart it is in the first place. Finding affordable schools with potential educational programs.
Calculating Return on Investment (ROI)
With loans totaling $ 1.2 trillion, according to NBC News, students and families are deeply concerned about the cost of college education. The soaring education level also makes many people question a degree even worth doing. Research has shown, however, that a degree does not pay off, as long as it leads to a good career and not just a job in a coffee shop after graduation.
The harsh reality is for some unnecessary things, while that is not all students think before enrolling in college and degree programs.
What is ROI?
ROI, or return on investment, is a term many people may have heard before. This is a performance or value metric that can be applied to any type of purchase to determine if there is anything valuable to someone's money. If the profits-or returns-outweigh the investment, that's a good sign it will be worthwhile. In terms of higher education, ROI. On profit (return). Because students will spend tens of thousands of dollars on education, it is important to set a college ROI before making any commitments. ROI, however, can be very subjective, and there are no calculations the size of each other. An important factor for one student may not be as important as the other. For example, A student can be ascertained that he needs personal attention only in small classes in order to run well, while student B can grow in small or large environments.
While ROI can be very personal, here are some important factors that all students should be aware of:
- Investment: Total Cost of Higher Education
To calculate the ROI of a college, the first step is to determine the total tuition fee. While tuition and fees are the appropriate amount of students see, some other important things can affect the total cost. Examples of costs to consider:
� Additional costs, such as technology, assessment, laboratory and health insurance costs
� Space and boards
� Textbooks and
� Cost of personal life
In addition to these costs and fees, consider also accepted financial assistance, such as grants and scholarships. In recent years, the federal government has encouraged capacity upgrading at this time.
- Calculating Potential Debt
Potential debt earned by students can greatly affect the ROI. For example, if a student debt payable on graduation is more than the starting annual salary, it will be a problem. Ideally, a graduate should earn enough money to meet all agreed terms of payment and the conditions that accompany the loan. This is when scholarships and grants will be useful. The more free money you can get, the less you have to borrow and eventually pay back.
- Refund: Future Income Expected
How many graduates will gain the key to calculating college ROI, as well as making intelligent decisions about student loans? Even if you are unsure of the numbers, educated guesses will still be helpful because it will be difficult to determine if you can return the money you invested to your level without any idea of future income. The Bureau of Labor Statistics posted average wages for several industries and jobs. Sites like salary.com are also useful for researching potential wages.
On a related note, the main field or area of a person can greatly affect future payments. It is not surprising that an engineering degree will result in an exciting career, while a liberal arts degree will be much more varied, even some jobs even produce little or no return at all. Therefore, when considering colleges, make sure to also think about the field of study and career eventually. If your passion is in a field that does not pay well, you should consider a lower college to maximize your ROI.
The following five majors are a wise investment:
� Information Technology
� Human Resources
� Economics
� Technique
� Marketing
Other "returns"
For many students, the main concern is what they will get after graduation. While certainly important, some students may also consider other subjective and qualitative outcomes such as personal development and enrichment, life experience, passion, and socialization. This may not be translated directly into financial gain, but given the fact that at least you will do at least a year, your life to be a student, they can help keep you motivated and happy during the trip and can also positively affect you long after earning a hat and your dress.
How long does it take to pass?
Just because you're pursuing a four-year degree does not mean you'll actually finish it in four years. In fact, according to the Institute of Education Sciences, in 2012, 59 percent of full-time first-year students complete their degree in six years. That's two more years of college tuition, fees, and student fees that are unlikely to be calculated from the start.
The time to graduate is essential for adult learners to consider. Because many adult students work part-time or full-time at school, it may take longer than expected to complete a degree program. This additional time can also lead to missed revenue opportunities. For example, if you currently work full-time in marketing, but decide to go back to school for two years to earn an MBA, you not only pay a fortune but are likely to lose your income by going to a part-time job or giving up your job entirely. One way to get past this is by attending an online college, which offers more flexibility so you can work towards your degree and still earn the full-time salary.
Additional Resources for Students
There are a number of free tools and websites online that students and families can use to estimate the various tuition fees, including ROI. Here is a list of resources to help you maximize your college investment:
� Inspection of Higher Education Reality Inspection of Higher Education
Produced by The Chronicle of Higher Education and supported by the Bill & Melinda Gates Foundation, this site provides information on graduation rates, net pricing, earning potential, and how long it takes students to pay off the loans so that students and families have all the facts and information they need to make smart decisions about higher education.
� College Board College Board
The College Board offers several tools and calculators as well as other information to pay for college to help students and families better prepare for higher education financial commitments.
� Fidelity
Fidelity has gathered useful information on 529 austerity plans as well as tools to estimate contribution estimates and tuition fees.
� LearnVest Grad LearnVest School Calculator - Grad School Calculator
For those interested in returning to school for a master's degree, LearnVest has created a tool to help prospective students determine if a graduate school is really worth doing.
� US Data & World Report Clean price calculator US News & World Report - Clean Price Calculator
Most colleges and universities now have an online net pricing calculator available on their website, but sometimes they are still hard to find. US News has compiled a list of clean pricing calculators for 300 National Universities and National Liberal Arts College.
� Affordability and Transparency of Higher Education Affordability and Transparency of Universities
In an effort to make tuition more transparent, the US Department of Education launched the Center for Affordability and Transparency of Higher Education. Here, prospective students can find various information in college, including scorecards, clean price calculators, and more.
� The Financial Industry Regulatory Authority (FINRA) of the Financial Industry Regulatory Authority (FINRA)
The whole of FINRA's mission is to protect people from cheating and bad practices and to promote fair financial markets. The organization has put together an entire section on intelligent storage for college, including a college savings calculator to find out the annual amount you need to invest in order to have enough money to pay for all the tuition fees.
� Consumer Financial Protection Bureau Consumer Financial Protection Bureau
CFPB offers all kinds of information about paying tuition, financial assistance and repay student debt.
� Federal Student Aid Federal Student Assistance
Increasing college ROI often requires a lot of careful budgeting. The DOE Federal Student Aid Office offers the following financial tips.
� Includes Lumina College fees, Great Prices And Recession Lumina Foundation - Higher College, Pricing and Recession Costs
This organization has just released a paper on tuition, pricing, and Great Recession. Read the report to get a better understanding of the big picture.
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