Tell Your Students that a ROI isn’t necessarily about money
If your students and their families consider a return on investment (ROI) in purely financial terms, a degree from one of the top engineering schools, such as MIT or Cal Tech, or a private or public ivy (think Princeton and the University of Virginia), seem like the best bet. According to Payscale.com, these schools offer 20-year net ROIs approaching 20%.
Contributing factors include how much financial aid is available, how long it takes students to graduate – at these schools, 90% or more students finish in four years – and what kinds of salaries graduates earn.
And if your student qualifies for admission to those elite schools, that sounds great.
But let’s stop for a moment and consider that return on investment transcends money, and the way to learn what that means for your student and their family is to think about the destination.
If they want to go somewhere, they have to put a destination on the map (or, these days, in the GPS). Without a destination, the map is useless. College is the same way. It doesn’t do anything for you unless you have a destination in mind.
Let me tell you about James. His parents were insisting that he go to college, but James wanted to follow his father, a battalion chief, and become a firefighter, and he didn’t see the need for a degree. After discussing his interests, values and skills, I advised James that he could go to community college, become an EMT and then a firefighter, which can be a well paying job.
But how long do you want to do that, I asked him. In fact, James wanted to move up, manage people and budgets, run a department, make a better salary for the lifestyle he envisioned. And for that he would need a bachelor’s degree and maybe a master’s. At that point, he felt more motivated because I had shown him the roadmap and he knew where he wanted to go. Now he saw the value proposition. In the end, James opted to go to a four-year school and volunteer with a fire department for hands-on experience.
In other words, he found a destination aligned with his values, skills and interests; built a roadmap, and had the right vehicle. That will all contribute to the ROI of his education.
What are some other forms of return on investment when it comes to college?
Personal development: College leads to understanding that life is always about learning and becoming well-rounded. Or perhaps ROI is about getting away from home, transitioning to pre-adulthood and learning life lessons: You’re not always going to win, failure is feedback, and embracing failure is an important aspect of life.
Quality of the education: Families can spend $5,000 to $8,000 to have a child sit in their bedroom with a laptop to earn a piece of paper, if that’s what’s important. They will, however, be missing out on the other intangibles college provides.
Cultural accomplishment: For many families, such as one with a child who would be the first to attend college, a degree is a must no matter what.
Connections: Building connections is one of the most important returns on investment. Professors who have developed philosophies and written books in a particular field can connect a student to a career. Successful individuals who are brought in as guest lecturers or visiting professors have the potential to become mentors. Alumni who have gone on to success can be the doorways to internships.
Personal fulfillment: If a student likes working with kids and wants to be a teacher, they do it because it’s rewarding. If a student wants to go into scientific research and find ways to fight climate change, they do it because it makes them feel good that they were part of something greater than themselves.
Interests, values and skills are the three aspects of college and career fit. It takes time to build a skillset and interests can change quickly, but values don’t change much over time.
It’s those values that will tell you and your students where the ROI lies. Maybe it’s not going to a four-year school at all, but pursuing a technical or mechanical career for which there’s demand, such as renewable energy. And everyone needs a plumber, electrician or car mechanic at some point.
The three main things to consider on the college journey are academic fit, social fit and financial fit. Beyond that, give thought to the entire value proposition: What values drive your student, what are their potential career fits, and what lifestyle can they expect based on those careers? If all of those pieces seem to make up a complete picture, your students’ return on investment should be substantial.
Brian Safdari, who founded College Planning Experts in 2004, is a Certified College Planning Specialist™. He and his team have assisted more than 7,500 students nationwide on their college journey using their exclusive My College Fit System. For more information, call me at 818-201-4847 or visit collegeplanningexperts.com.
