Tag: ROI

  • College Gives a Positive ROI for Some, but Outcomes Vary

    College Gives a Positive ROI for Some, but Outcomes Vary

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    Seventy percent of the country’s college graduates see their investment pay off within 10 years, but that outcome correlates strongly to the state where a student obtains their degree, according to the Strada Foundation’s latest State Opportunity Index.

    The report, released Thursday, shows that states such as California and Delaware surpass the average at 76 percent and 75 percent, respectively, while North Dakota, for example, falls significantly short at 53 percent.

    Across the board, the nation still has a ways to go before it can ensure all graduates see a positive return on investment, according to the report.

    “Too many learners invest substantial time and money without achieving strong career and earnings outcomes,” it says. “Meanwhile, many employers struggle to find the skilled talent they need to fill high-wage jobs.”

    Strada hopes that the index and the five categories it highlights—outcomes, coaching, affordability, work-based learning and employer alignment—will provide a framework for policymakers to “strengthen the link between education and opportunity.”

    “The State Opportunity Index reinforces our belief at Strada Education Foundation that we as a nation can’t just focus on college access and completion and assume that a college degree will consistently deliver for all on the promise of postsecondary education as a pathway to opportunity,” Strada president Stephen Moret said in a news release. “We must look at success beyond completion, with a sharper focus on helping people land jobs that pay well and offer growth opportunities.”

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  • Community College Accreditor Adopts ROI Metric

    Community College Accreditor Adopts ROI Metric

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    The Accrediting Commission for Community and Junior Colleges is launching new tools to give members of the public more insights into student outcomes at the institutions under its purview.

    Those tools include dashboards with different student achievement data points as well as a new metric to gauge return on investment. Like the Western Association of Schools and Colleges Senior College and University Commission, ACCJC is planning to measure ROI using price–to–earnings premium. Developed in part by Third Way and the College Futures Foundation, the earnings premium tracks how long it takes for graduates from different programs to recover educational costs.

    The accreditor wrote in a white paper on different value metrics that the earnings premium is an “approachable and understandable way for students and their families to discuss the value education adds to earnings potential. It also allows for institutions, reviewers, and policy makers to contemplate a measurable target and drive improvement.”

    ACCJC chair Kathleen Burke said in a news release that a key takeaway from developing the white paper and dashboards is that federal policy leaders want institutions to demonstrate their value. 

    “These efforts by ACCJC help policy makers and the public understand the incredible value proposition offered by ACCJC member institutions,” Burke added.

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