This week we welcome Enrollment Management’s Communications Officer, Amanda Budd, to the blog. Welcome, Amanda!
When I was an undergraduate student, pursuing degrees in journalism and ecology (my journey from ecology to working with college admission is a different story for another day), my ecology degree program had a Family Day to talk about career prospects. They invited our parents for tours of labs, presentations, and lunch, with the goal of affirming to both students and parents that they would get a return on their investment in an ecological education.
Some parents had questions and doubts about the value of an ecology degree, given that it’s not a field known for large paychecks. Most of these parents had, after all, put some amount of money into their student’s education. What if they got nothing in return?
In admission and in enrollment management, we talk a lot about this concept of return on investment (ROI), or what you can expect to receive in exchange for spending money on a college education. ROI is a useful concept because we know that paying for college is an investment of time, energy, and money. We want students to see how they can be successful with a degree from our institution.
But what does ‘successful’ look like, and how do we measure it? Beyond ROI, how can students and families prepare to make the investment in a college education?
ROI is in the Eye of the Beholder
Typically, you’ll see universities talk about ROI in terms of mean or median annual income of recent graduates. However, I like to caution that ROI means different things for different people. Going back to Rick’s blog from early February, don’t let rankings or metrics drive you. Not everyone can (or should) pursue the highest paying major or starting salary.
Among my graduating class you’ll find a wide range of salaries. I have friends spread across the entire United States – Idaho, Maine, Washington D.C., a remote island off the coast of Georgia (only accessible by a tiny boat), and beyond, even Costa Rica! Many of them work seasonal jobs that last 4-6 months, pay a stipend, and provide housing with a handful of other benefits.
Is that everyone’s version of success? Maybe not. But they’re traveling to new places for free or cheap and spend most of their days outside working with endangered sea turtles, grizzly bears, or some other cool organism while they get experience for graduate school or a full-time career in those fields. In most cases, it’s exactly the return they wanted when they invested in a college education.
Decide what you truly want from your investment in college. If that looks like maximizing your salary, then average starting salary is likely a good ROI metric for you. If it’s more qualitative, research what a college’s graduates are doing, or look at job placement rates.
Balancing the Return with the Investment – Let’s Talk Loans
Now that we’ve talked about the ‘R’ part of ROI, let’s talk about the ‘I.’ While everyone hopes for scholarships (and Georgia students usually get the HOPE or Zell Miller Scholarship), ultimately you may be faced with taking out some loans to finance your education.
I know how pervasive the fear of loans is as someone who graduated a mere 11 months ago – thoughts of loan repayments follow most college students around like a kind of bogeyman. It is a big choice to make, but I encourage others to recognize that loans are commonplace for adulthood — car loans, loans to buy a house, etc. For an education that will guide you for the rest of your life, consider that a loan is worth the investment.
Recently, I spoke to six students about their experience paying for college. For those with loans, paying them off wasn’t something they saw as a considerable challenge in the context of the value of their degree and the opportunity to pursue their passion.
“When you look at the starting salary of most Tech students after they graduate, usually any debt is something they can pay off very quickly,” one student told me.
The average debt for a Tech graduate is also much lower than the national average — $21,672 versus $45,300 nationally. Combined with an average starting salary of $89,942, it’s a great ROI by that metric.
However, a good ROI doesn’t mean you don’t need a plan for investing in college – like with loans at all points in your life, they should be taken seriously. Know your options for paying them back and don’t borrow more than what you need. How do you know what you need?
Make a Plan.
The number one piece of advice from the current students I spoke to was to make a plan – whether that be three months, three days, or three years before starting college.
One student sat down with her parents when she was admitted to outline the next four years and how much and when her parents and herself could contribute. Another has been splitting his checks – half to savings and half can be spent now – since early high school. Yet another made a college-dedicated savings account where all his scholarship funds are held.
From there, checking their emails for scholarship opportunities once they arrived proved critical. That, and networking for internships and co-op positions (which should be something everyone does, regardless) play key roles in funding their investment.
Think Ahead
There’s no right or wrong way to pay for college, but planning for it early, and keeping that momentum throughout time in college is essential. It’s not the same task it was 20 or 30 years ago, so knowing what you’re dealing with is the first step.
Whether you’re drawn to the prospect of maximizing your salary or prioritizing qualitative experiences, it’s crucial to define what success means to you and how a college degree helps you get there.
By embracing the opportunities and challenges that come your way, and by planning thoughtfully for the future, you’ll not only make the most of your college experience but also pave the way for a fulfilling and rewarding future beyond graduation.