It would be wise to look for the colleges with the best return on investment after deciding to study abroad. As we all know, studying abroad has a high cost in every aspect, such as the preliminary language test, tuition fees, and living expenses. Under this condition, entering the best ROI colleges will save us a substantial amount of money.
To provide you with the most authoritative and reliable information, we have listed the top 10 colleges with the best return on investment using the 40-Year Net Present Value (NPV) data from a recognized authority like Payscale or Georgetown University’s Center on Education and the Workforce (CEW). This metric represents the total financial gain a graduate can expect over 40 years, minus the total cost of attendance.
P.S. ROI=income (students’ potential income)/investment cost (tuition fees, etc.)
What Is a Good ROI for College?
Calculating your return on investment in higher education is a complex but valuable process. It involves multiple factors, including the cost of schooling, expected future income, and the value of time. The most common and authoritative metric used by organizations like Payscale and Georgetown CEW is the 40-Year Net Present Value (NPV).
Financially speaking, a good ROI is one where the increase in earning potential significantly exceeds the total cost of attending college. This includes tuition, fees, books, and the opportunity cost of time spent studying.
Best Return on Investment Colleges Ranking Criteria
- Tuition Costs and Associated Fees: Colleges with lower tuition fees or extensive financial aid options will naturally offer a higher ROI.
- Graduate Potential Earnings: This involves analyzing the median salaries of alumni, typically over a 20-year or 40-year period, to gauge the economic benefits.
- Career Opportunities: Institutions that facilitate high-quality job opportunities allow graduates to realize the return on their investment sooner.
- Graduation Rates: Higher graduation rates suggest that students are successfully completing their courses and moving towards their career goals within the expected timeframe.
Top 10 Colleges with the Highest 40-Year Net ROI
Based on the latest authoritative data, the list of colleges with the highest financial return is often dominated by specialized institutions, particularly the federal service academies, due to their $0 tuition and guaranteed employment.
| Rank | College | Estimated 40-Year Net ROI (NPV) | Annual Tuition |
|---|---|---|---|
| 1 | Harvey Mudd College | $4,506,000 | $63,255 |
| 2 | MIT | $4,000,000 | $60,156 |
| 3 | United States Merchant Marine Academy | $3,500,000 | $2,016 |
| 4 | United States Military Academy | $3,400,000 | $0 |
| 5 | United States Naval Academy | $3,300,000 | $0 |
| 6 | California Institute of Technology | $3,200,000 | $63,255 |
| 7 | Colorado School of Mines | $2,700,000 | $42,120 (Out-of-State) |
| 8 | United States Air Force Academy | $2,600,000 | $0 |
| 9 | SUNY Maritime College | $2,500,000 | $18,480 (Out-of-State) |
| 10 | California Maritime Academy | $2,400,000 | $18,996 (Out-of-State) |
Top 10 California Maritime Academy
- Estimated 40-Year Net ROI: $2,400,000
- Annual Tuition: $18,996 (Out-of-State)
As the only maritime college on the West Coast of the United States, CMA, one of colleges with best ROI, offers seven undergraduate programs, such as Marine Transportation, Marine Engineering Technology, and Business Administration.
CMA is not a sizable university, but the students usually have more job opportunities and more high-paying jobs after graduation since the majors it offers are basically engineering and business, and the maritime field is currently popular in the United States. Therefore, they are likely to earn more. In addition, CMA has financial donation projects such as the Yacht Donation Program. The funds raised will be used to distribute grants and scholarships. In this way, the learning and living costs are also significantly reduced.
Top 9 SUNY Maritime College
- Estimated 40-Year Net ROI: $2,500,000
- Annual Tuition: $18,480 (Out-of-State)
SUNY Maritime College, one of the colleges with the best return on investment and the second maritime college on this list, is a public school in New York State. SUNY Maritime College offers various majors related to marine research like CMA, such as marine science, naval architecture, and marine engineering. The school also provides other disciplines, such as business, social sciences, and other majors, to diversify students’ choices. At the same time, the school’s employment support services provide students with information on various job searches and internships. It holds many job fairs for students to participate in, providing many employment opportunities. In addition, the college offers scholarships, which will reduce your living costs.
Top 8 United States Air Force Academy
- Estimated 40-Year Net ROI: $2,600,000
- Annual Tuition: $0
As a university favored by US military, it is also one of the colleges with the best return on investment. So far, it has trained countless outstanding talents for the U.S. Air Force. In addition to serving in the Air Force, USAFA offers various engineering majors, such as aerospace engineering, civil engineering, etc., and some liberal arts research subjects, such as physics and politics.
USAFA is the Air Force Reserve School, meaning students here do not need to worry about employment after graduation. The school is also funded by the U.S. government to pay tuition and living expenses for students who have promised to serve in the military for a certain period in the future. Therefore, USAFA, one of the colleges with the best return on investment, can be regarded as a representative of “low cost, high return”.
Top 7 Colorado School of Mines
- Estimated 40-Year Net ROI: $2,700,000
- Annual Tuition: $42,120 (Out-of-State)
Colorado School of Mines, among the colleges with the best return on investment, has many popular majors, including Mechanical Engineering, CS and other engineering majors. In this way, the employment rate of graduates is as high as 95% only two years after graduation. More than 1,300 companies recruit students yearly. The median annual salary for recent graduates is also high—$84,900. At the same time, Colorado School of Mines also offers many scholarship options to help students relieve the pressure of tuition. After all, more than $950,000 is donated to this school. That’s why Colorado School of Mines is one of the highest ROI colleges.
Top 6 California Institute of Technology (Caltech)
- Estimated 40-Year Net ROI: $3,200,000
- Annual Tuition: $63,255
California Institute of Technology, one of the 3 giants of American polytechnics, is one of the highest return on investment colleges. It has countless strong majors, such as CS, engineering, mathematics, and statistics. The teacher-student ratio is 3:1, and the graduation rate exceeds 80%. At the same time, Caltech also maintains close cooperative relationships with NASA, various medical and scientific research institutes, etc. Therefore, there is no doubt that graduates must have a bright future because of the numerous job opportunities. In addition, the career counselling room in the school provides students with various information and job fairs at all times, which is warm, practical and convenient. It also has many donations and investment funds to distribute grants and scholarships, which will likely decrease the cost of living and learning.
Top 5 United States Naval Academy
- Estimated 40-Year Net ROI: $3,300,000
- Annual Tuition: $0
The U.S. Naval Academy is one of the best ROI colleges among U.S. schools, entirely worthy of “investment”. Some popular majors for the students include shipbuilding, marine engineering, oceanography, and mathematics. The students who majored in those will have many job opportunities after graduation.USNA is a federal service academy and contributes to fully funding the tuition fees of students who will join the federal service after graduation. That’s the reason why it is one of the highest ROI colleges in the US. In addition, USNA could provide scholarships of up to $75,000, dramatically reducing students’ tuition burden.
Top 4 United States Military Academy (West Point)
- Estimated 40-Year Net ROI: $3,400,000
- Annual Tuition: $0
The United States Military Academy is the oldest military school and one of the colleges with the best return on investment, which continuously supplies talents to the army. Graduates will receive a degree in science and be appointed “Army Second Lieutenant.” In other words, the graduates don’t need to worry about finding a job because graduation equals “directed employment”. Due to the support of federal services, students at this college can also receive corresponding tuition assistance, etc. This is one of the reasons why it is one of the colleges with the biggest return on investment.
Top 3 United States Merchant Marine Academy
- Estimated 40-Year Net ROI: $3,500,000
- Annual Tuition: $2,016
United States Merchant Marine Academy is among the best return on investment colleges. It is also the third federal service college to appear on this list. Federal services are indeed robust services that help students save money and find high-paying jobs. The U.S. Merchant Marine Academy trains licensed Merchant Marine Officers and Commissioned Officers to serve the national security, maritime transportation, and economic needs of the United States.
The U.S. Merchant Marine Academy mainly provides undergraduate courses in marine engineering, maritime transportation, maritime logistics and safety, etc., for students to learn various knowledge related to marine transportation. At the same time, the college’s tuition and living expenses are also meagre, so students can spend their college years at a meagre cost while reaping higher returns.
Top 2 Massachusetts Institute of Technology (MIT)
- Estimated 40-Year Net ROI: $4,000,000
- Annual Tuition: $60,156
The famous MIT has long been the dream school of numerous students and parents. The letters MIT alone are enough to be the recruitment standard for many companies, which naturally reflects that it must be one of the highest ROI colleges. MIT attaches great importance to basic sciences, engineering, and other research and cooperates closely with many research institutes. Therefore, there is a lot of financial support related to scientific research and many corresponding scholarship opportunities.
According to statistics, MIT’s teacher-student ratio is 3:1, and 71% of MIT’s classes have no more than 20 students, which means the relationship between students and professors is very close. Students will also have a good classroom experience. In addition, although MIT’s tuition is relatively high and the cost of living in Boston is not cheap, the average annual salary for MIT recent graduates is $102,988. Studying in one of the best ROI colleges, MIT, Earning the tuition back is effortless!
Top 1 Harvey Mudd College
- Estimated 40-Year Net ROI: $4,506,000
- Annual Tuition: $63,255
Harvey Mudd College is called “one of the highest ROI colleges in the United States” by many students. It is also one of the best engineering schools with many popular majors, such as CS, engineering, mathematics, and statistics. Job hunting will be relatively easy in the future. At the same time, Harvey Mudd College is a small but sophisticated liberal arts college with a high-quality education and a solid alumni circle, which shows that it will provide firm support to students.
It has a graduation and retention rate of about 90%. Therefore, it is highly recommended that students who are interested in the majors offered by this school choose it as one of the applications.
Why College ROI Is Important?
The likelihood of graduating on time affects ROI. Higher graduation rates suggest that students are successfully completing their courses and moving towards their career goals within the expected timeframe, thus beginning to realize the return on their educational investment sooner.
By carefully considering these criteria, students can more easily make informed decisions that align with their educational and financial goals, paving the way for a successful and fulfilling career.
Student Accommodation Recommendation Near Best ROI Colleges
For those interested in these colleges with the best return on investment mentioned above, accommodation is the next important consideration. As we all know, the dorms in US colleges cost much, probably even more than the off-campus US housing of the same type. Therefore, living off campus will further reduce our living costs, especially when renting a highly cost-effective apartment, such as California Institute of Technology housing, Colorado School of Mines housing, and Massachusetts Institute of Technology housing. These low-priced, well-furnished apartments offer more independent spaces and well-appointed facilities than dorm rooms.
- California Institute of Technology housing: Located within walking distance of the university, the apartments offer convenient living and are surrounded by a dozen restaurants and cafes.
- Colorado School of Mines housing: The apartments are about a 20-minute drive from the college. They have appointed everything you need to make you feel comfortable in the new home.
- Massachusetts Institute of Technology housing: The apartments are also situated within walking distance of the university. They have beautiful environment, user-friendly design, convenient transportation and good security.
Conclusion
10 colleges with the best return on investment in the US have been introduced above. They offer more than just a degree but also provide a gateway to job opportunities, a nurturing environment for innovation, and a solid foundation for a successful future in a highly cost-effective way. For those who prefer to consider the long-term value of their college education, these 10 best return on investment colleges must be the top choices.
FAQ
What are the best ROI degrees?
The best ROI degrees are listed below.
- Computer Science
- Medicine
- Engineering
- Business and Economics
- Law
- Nursing
- Renewable energy
Among them, Engineering and Computer Science majors are the best ROI degrees due to the practicality and modernity of them, according to the statistics from the American Educational Research Journal.
What job has the best ROI?
The best ROI job is software engineering. This field has a relatively low barrier to entry in terms of required education (often a bachelor’s degree in computer science or a related field) with a high earning potential. Software engineers play a pivotal role in designing, developing, and maintaining the software that powers our digital world, which is a practical and popular job.
What degree has the lowest rate of return?
The lowest ROI degree may be in education, humanities and art majors. For male college graduates, the rate of return is around 5%, while for female graduates it’s 8–9%. Here is a list of College majors that pay the least after graduation for reference.
- Liberal Arts $38,000.
- Performing Arts $38,000.
- Theology + Religion $38,000.
- Leisure + Hospitality $39,700.
- General Social Sciences $40,000.
- History $40,000.
- Miscellaneous Biological Science $40,000.
- Fine Arts $40,000.
What degree is most in demand in the future?
Data Science is the most in demand in the future. The demand for Data Science professionals is expected to surge in the coming years. According to reports from the World Economic Forum and other reputable sources, the era of Big Data and the Internet of Things (IoT) is only going to expand. This expansion demands a corresponding increase in skilled individuals who can analyse, interpret, and utilise this data effectively.
