Will your college impact your salary?
May 21, 2012
Data shows that getting a bachelor's degree can help boost your earning potential.
For instance, the U.S. Census Bureau reports that individuals whose highest level of education is high school made an average of $31,000 per year in 2010. For those whose highest degree is a bachelor's degree, the average was $58,000.
In addition, recent research from the Pew Research Center reveals that over the course of a 40-year career, college graduates are expected to make about $650,000 more than those without a college degree.
However, students who graduate with certain majors have historically command higher paychecks. According to the National Association of Colleges and Employers (NACE), those with a degree in engineering, computer science and business tend to make more money, especially right out of college.
But did you know that where you go to school may affect your earning potential as well? A new report released by PayScale.com reveals that certain learning institutions offer graduates a bigger return on their investment, meaning they are likely to make more money because of the name on their degree.
PayScale's 2012 College Return on Investment (ROI) Report analyzed the return on investment at 853 colleges and universities. In addition, the company grouped the schools into eight categories: private research universities, liberal arts schools, arts, music & design schools, business schools, engineering schools, ivy league schools, private schools and public schools. The report shows the comparison between in-state and out-of-state tuition for public universities and the difference in ROI for students who receive financial aid and those who do not.
In total, the report found that engineering schools offer students the greatest ROI. The average 30-year net ROI for engineering schools is more than double the ROI for liberal arts schools ($561,135 vs. $183,299).
"As the student loan discussion in the country continues and questions about the return on investment of the college and university experience persist, the PayScale College Return on Investment report highlights the connection between cost, areas of academic study, and future salary potential," said Katie Bardaro, lead economist at PayScale. "Our data makes clear that, once again, engineering schools provide the greatest return on investment opportunity."
Among all school categories, the report found that Princeton University, California Institute of Technology, Harvey Mudd College, Harvard University and Massachusetts Institute of Technology offer students the greatest return on their college investment.
Individuals can view the entire list by visiting PayScale.com/education/compare-college-costs-and-ROI.
However, moms should take this information with a grain of salt. After all, the feeling of accomplishing the dream of becoming a college graduate is often the best return on investment.
Luckily, many parents can also depend on grants for parents, single mother scholarships and scholarships for mothers to minimize their out-of-pocket cost for going to college.
