Education requires significant capital investment. However, the long-term return on this investment makes it all worthwhile. The return on investment for college education can be calculated based on how much the student is earning minus all the costs incurred throughout the college period. This return on investment figure is particularly useful when finalizing a college for higher education.
Since college education requires a major chunk of your finances, it is wise to compile and compare return on investment data for your choices of college. It helps you give a better idea of how much rate of return would you be able to achieve on this particular capital investment.
Here is an overview of America’s top 10 colleges with their cost and return on investment figures. The cost figures are the total lump sum of the return on investment and the amount required to graduate for a 20-year period.
Best colleges for return on investment:
1. Harvey Mudd College — Cost: $229,500; ROI: $980,900 – 8.8%
Based in California, this private college focuses on subjects like science, engineering and mathematics. It is one of the best colleges of America and its students earn almost $73,300 per year. This makes its return on investment the highest in all of American colleges.
2. California Institute of Technology — Cost: $220,400; ROI: $837,600 – 8.3%
Located in California, this research university ranks second in the return on investment rankings. With focus on science and engineering, California Institute of Technology boasts of an extraordinary faculty. A Caltech graduate typically starts earning from the figure of $68,400 per year.
3. Massachusetts Institute of Technology — Cost: $223,400; ROI: $831,100 – 8.2%
A renowned name and an east coast rival for the Caltech, Massachusetts Institute of Technology comes up right after its competitor with a close return of investment rate of 8.2%. The institute has a huge pedigree and prides of a long list of Nobel Laureates, National Medal winners and MacArthur genius Fellows
MIT has a much higher undergrad enrollment number as compared to the two top colleges, mentioned above. The annual salary figure for typical MIT grad rounds up to almost $68,600.
4. Stanford University — Cost: $236,300; ROI: $789,500 – 7.8%
Yet another California based university, Stanford University is a leading research institute. The tuition was available for free till the 1930’s; however, the cost of graduating now amounts up to around $236,300. This cost earns a return on investment of 7.8% for the grads while boasting of the creation of companies, like Google, HP, Nike and Yahoo!, by its alumni.
5. Colorado School of Mines (in state) — Cost: $114,200; ROI: $783,400 – 11%
Unlike the top 4 universities, Colorado School of Mines is a public engineering university, based in Golden, Colorado. It is a small research university with its academic focus on applied sciences and engineering and an awesome sports team Orediggers. With a high enrollment figure and 38 on-campus research centers, the university proudly holds the fifth position in the return on investment rankings.
6. Georgia Institute of Technology (in state) — Cost: $92,250; ROI: $755,600 – 11.9%
One of the country’s premier research institute, Georgia Institute of Technology is ranked 6th on the return on investment rankings. With a $92,250 capital investment to cover, the graduates of this university earn an 11.9% rate of return on investment. Notable military commanders and Nobel Prize winners form part of this public university making it one of the most renowned universities of America.
7. Rose-Hulman Institute of Technology — Cost: $217,400; ROI: $736,200 – 7.8%
Rose-Hulman Institute of Technology is a small, private engineering institute with its academic focus on mathematics, science and engineering. Its academics allow its graduates to earn a 7.8% of rate of return on the cost incurred for the degree. Notable alumni include people like Ernest R. Davidson, national medal winner and Abe Silverstein, NASA Center Director.
8. Polytechnic Institute of New York University — Cost: $223,900; ROI: $724,500 – 7.7%
Polytechnic Institute of New York University competes closely with Rose-Hulman Institute with a 7.7% rate of return on investment. This private institute is a part of New York University and is known for its genius physicists alumni.
9. Stevens Institute of Technology — Cost: $250,900; ROI: $722,400 – 7.2%
Ranked ninth, Stevens Institute of Technology graduates require an investment of $250,900 and earn a 7.2% rate of return on this capital investment. With a variety of engineering courses offered, this private institute is a good option for those students looking for a good return on a low cost university.
10. Colorado School of Mines (out of state) — Cost: $178,500; ROI: $719,000 – 8.6%
The out of state tuition of Colorado School of Mines costs more than the in state campus while earning a lower rate of return on investment. In spite of this, it is ranked in the top 10 colleges of America with the best return on investment.
While there are many factors to consider while choosing a college for yourself, the return on investment is one of the most prime factors. Our list of top 10 colleges will help you narrow down tour search for the best institute.