DENVER (KDVR) — The sentiment around higher education in the U.S. has become increasingly complex, from political concerns, the financial burden of student debt and a tough job market.
Amid this wave of scrutiny, more people are looking at the value of a college education, and a new analysis by the Strada Education Foundation measures the benefit that graduates get over the costs to get degrees in each state.
The term “return on investment,” or ROI, primarily used in the business world, is now used by universities to gauge the value of a college degree.
Colorado in recent years started publishing annual ROI reports on the state’s higher education institutions, which generally shows the value of degrees, but what does this new study from Strada say about the value of a college degree from Colorado?
Majority of US degrees worth cost, analysis finds
To measure the ROI for each state, Strada looked at the percentage of bachelor’s and associate degree recipients who have earnings over a decade that exceed that of a typical high school graduate by an amount greater than the cost of their degrees, according to the Associated Press.
“A college degree usually delivers on the promise of economic security and mobility,” Strada said on its website. “But too many learners invest substantial time and money without achieving strong career and earnings outcomes.”
The study found that on average in the U.S., the majority of recent public college graduates, 70%, can expect a positive ROI within 10 years, including 73% of bachelor’s degree graduates and 60% of associate degree graduates.
Colorado, however, lags behind the national average.
Colorado degrees’ ROI lags behind national average
According to Strada, just 65% of degree earners in Colorado can expect a positive ROI.
For associate degree earners, it’s even less at 49%; only one other state, North Dakota, had a lower percentage for associate degree earners. Bachelor’s degree earners in Colorado fared a little better, with 68% expecting a positive ROI, though it too was below the national average.
The analysis also focuses on five areas for employment improvements: Clear outcomes, quality coaching, affordability, work-based learning, and employer alignment.
Strada found Colorado is only leading in one of these categories, clear outcomes, and it is still in early stages of development in the other four areas. Associate degrees in Colorado are leading in affordability, though data for associate degrees was unavailable for the study’s breakdown of quality coaching and work-based learning.
Where Colorado excelled, fell short
The only category that Colorado excelled at across the board was clear outcomes, which measures states’ education-to-employment data systems.
This includes providing statistics and providing access to strengthen opportunities for degree-earners.
The only other category Colorado led in was associate degree affordability; meanwhile, bachelor’s degree affordability lags, with students on average needing to work nearly a full-time job to afford a degree.
Colorado fell short in the quality coaching category, which looks at the percentage of students who report receiving work-readiness guidance and support. Only 21% of Colorado students reported receiving labor market information before enrolling or during their first years.
Colorado’s full report from Strada’s analysis can be viewed online.
The Associated Press contributed to this report.
