Is there a return on investment in higher education?

Higher education demands a high level investment of time and money in return for higher earnings and improved skills. Measuring value in higher education, relative to costs, is important to make an informed decision about whether and what to study.

Due to the high cost of higher education, some prefer to skip it altogether, start from the bottom of the chain and progress through experience. Some prefer to get an early start in a career and invest in higher education later on, after saving up to avoid hefty student loans. All these alternatives give a good reason to evaluate the return on investment of higher education.

Is there a return on investment in higher education

The return on investment depends on quite a few contributing factors:

1. Cost of higher education

The cost of higher education largely depends on factors such as the number of years taken to complete the course, the type of course (diploma, advanced diploma, degree, masters etc.), where it is studied and the likelihood of completion. We cannot conclude that a higher cost will yield a higher return. The cost of funding not only includes the sticker price, but also cost of borrowing. Students can now minimise the cost of higher education through exploring different study modes such as online learning, progression routes and part time courses.

2. Economical conditions

The job market is an important determinant of the size of the return. Unstable period of economic recession hinder the opportunity to secure a good job and progress as desired. College education builds a skill set. The ability to put that skill set into use and gain a considerable return depends on the economic infrastructure.

To maximise earning potential, one must select a course in a field in demand, that
That doesn’t mean that the fit between personal interest/ strengths and the course selected should be ignored. For example, if you are interested in Maths, you don’t necessarily need to major in it. Instead, you could major in an area that is math-centric, such as actuarial science, computer science, or economics.

3. Time taken to complete the course

Higher education is now offered in many forms through many mediums. Courses range from online to part-time to fast track. These options have emerged to make higher education more affordable and tolerable. The return on investment on a fast-track degree maybe higher than that of a traditional four-year degree as it’s less expensive and provides quicker access to generating revenue.

One can make use of accelerator diplomas or progression courses to speed up study time without compromising on the quality of the education received.

Although higher education pays off for many, the exact returns for an individual are highly uncertain and evolve over time. For most, an investment in higher education yields a substantial economic and personal return, but this investment may not pan out for some students. By understanding the factors that contribute to lower returns, one can make a better decision in selecting which course to study, when to study and whether to study.

Like what you read?

Sharing is caring:

Share on facebook
Share on twitter
Share on linkedin

You Might Also Like

Time and commitment demanded by an online MBA

Online MBAs have become a hot topic with many traditional universities now offering them in addition to their in-campus courses. Online MBAs offer much needed flexibility for graduates, giving them the opportunity to study at their own pace, own place.

Selecting a title for your dissertation

Selecting a title for your dissertation

If you are looking to enter into the digital economy, then there’s no time like the present to make your move. According to Smart Insights, some of the most in-demand skills for 2017 were digital advertising, content strategy, content creation and social media. Read further to unfold a few more reasons to consider this career.

Why choose a career in Digital Marketing?

If you are looking to enter into the digital economy, then there’s no time like the present to make your move. According to Smart Insights, some of the most in-demand skills for 2017 were digital advertising, content strategy, content creation and social media. Read further to unfold a few more reasons to consider this career.

Why pursue a Master’s degree?

Are you contemplating about earning your master’s degree this year, but feeling unsure whether it’s the right move for you? While you may feel that this is a decision not to be made lightly, here are some valuable reasons as to why, pursuing a Master’s degree should be one of your key priorities for 2019:

Calling Out To The Inner-Entrepreneur In You

The prospect of starting up your own business and doing something you love may seem like an unconquerable task at first, because you might not know where to begin. But thanks to accessible and affordable cloud based technology and convenient schemes to finance a new venture, your dream of becoming your own boss may be much closer than you think.