The Bipartisan Policy Center recently released a new report featuring estimates of colleges’ Return on Investment (ROI) using a model that adjusts for the costs and benefits of enrollment, the negative impact of labor market discrimination, and public subsidies provided by local, state, and federal sources. Some of the report’s findings on results from this model (referred to as the “full model” in the report) are below:
Most institutions are estimated to provide their students with a positive ROI.
- 81% of all higher education institutions have a positive estimated median ROI*.
- 96% of postsecondary students attend higher education institutions with a positive median ROI.
Public institutions are most likely to provide their students with a positive estimated median ROI.
- 96% of public higher education institutions have a positive estimated median ROI.
- 100% of public higher education students attend institutions with a positive median ROI.
Similarly, the majority of private non-profit institutions provide their students with a positive estimated median ROI.
- 90% of private non-profit institutions have a positive estimated median ROI.
- 93% of private nonprofit institution students attend institutions with a positive median ROI.
Less than half of private for-profit institutions are estimated to provide their students with a positive estimated ROI.
- 41% of for-profit colleges have a positive estimated median ROI.
- 69% of for-profit students attend colleges with a positive median ROI.
The majority of HBCUs yielded a positive estimated median ROI due to the fact that the Full Model adjusted for labor market discrimination.
- 89% of HBCU institutions have a positive estimated median ROI.
- 95% of HBCU students attend HBCUs with a positive median ROI.
*The median ROI is the total lifelong student financial gains (or, in some cases, losses). It is calculated institution wide and allows for comparisons between institutions.
