Researching Return on Investment (ROI)

College is a major investment of your time, energy, and money — so it’s important to think critically about the return. Will the education and experiences you gain be worth the cost in the long run?

This section will help you think through what “Return on Investment” (ROI) means for education and how to research it before you commit to a program or school.

What Is ROI in Education?

Return on Investment (ROI) in education is a way to assess whether the value you gain from your degree or program — such as income, job opportunities, and personal growth — is greater than the cost of earning it.

A strong ROI usually means that over time:

Your earnings and career opportunities support your financial goals.
The cost of your program and any debt you take on remain manageable.
The skills and experiences you gain continue to benefit you beyond graduation.

While finances are a key part of ROI, it also includes non-financial benefits that can be just as important.

Beyond the Money: Non-Financial ROI

Financial outcomes matter, but college can add value to your life in other ways too. When you evaluate ROI, consider the full picture, including:

Skills you build — like critical thinking, communication, teamwork, technical skills, and problem-solving.
Networks you form — connections with faculty, peers, supervisors, and mentors who can support your personal and professional growth.
Co-curricular experiences — clubs, internships, leadership roles, volunteering, research, and part-time work that help you explore interests and build your resume.
Clear, efficient academic planning — working with an academic advisor so you take the right classes, avoid excess credits, and move steadily toward graduation.

Together, these factors can support your success after graduation and help you get more value from your educational investment.

Looking at the Financial Side of ROI

When you think about the financial side of ROI, you’re really asking: Will the cost of this program be manageable compared to my future income?

Key pieces to consider:

Total Cost of Attendance: Tuition, fees, housing, food, books, supplies, transportation, and personal expenses over all the years you plan to attend.
Net Price: What you are likely to pay after grants and scholarships are applied (not just the “sticker price”).
How much you may need to borrow: Student loans and any other borrowing you plan to use to cover costs.
Expected starting salary: Typical starting pay in your field, based on your degree, career path, and location.

Some people use simple “rules of thumb,” such as aiming to keep total borrowing at or below the amount they expect to earn in their first year after graduation. These are not hard rules, but they can help you notice when a program might be especially high-cost for the salary it leads to.

It can help to ask yourself:

“If I graduate with this amount of debt, how might that affect my monthly budget?”
“How long am I comfortable taking to repay my loans?”
“Are there lower-cost pathways (like community college or apprenticeships) that lead to the same or similar career?”

Questions to Ask About ROI

As you research schools and programs, these questions can help you think about ROI more intentionally:

What do graduates of this program typically earn early in their careers? How does that compare to what I may need to borrow?
What are the program’s graduation and job placement rates?
Are there paid internships, co-ops, or work-study opportunities that can reduce my borrowing and build experience?
How long does it usually take students to finish this program (two years, four years, longer)?
What support is available if I face financial or academic challenges (advising, basic needs support, tutoring, emergency funds)?
Does this program provide transferable skills that would be useful if I change careers later?

There is no single “right” answer — ROI will look different for each person based on goals, values, and financial situation.

Articles & Tools to Explore ROI

Use the articles and tools below to learn more about how researchers, policy experts, and financial educators think about the return on a college degree.

As you read, remember that these are general analyses — your own ROI will depend on your choices, circumstances, and goals.

Additional Resources

CAFE Handout: Financial Planning for College (High School Students)
- Find helpful resources and information for your college financial planning journey.
CAFE Audio-Recorded Presentation: Paying for College
- Find the slides that interest you and listen in to the sections that match your questions.
- Additionally, view a shortened video version of this session: Paying for College – Shortened Recording.