Higher Education's return on investment

The perception that seeking and achieving a higher education degree pays off has driven enrollment for generations of U.S. and international students and resulted in the dramatic growth of colleges and universities in the 20th century. The return on investment was assumed with local, state, and federal government initially contributing a significant proportion of the cost and students/families picking up the remaining, and more recently growing, proportion of the expense.

Enter a time of demographic shifts that have resulted in U.S. institutions relying on surging international enrollment and attracting students from U.S. families who have previously not had the privilege of higher education opportunity and suddenly the return on investment question is front and center. One-third of students attending college today are immigrants or from recently immigrated families. But for these students the economic mobility pay off is delayed for at least 2 to 3 generations from the first family member who pursues a college degree. For students of color from immigrant family backgrounds, the pay off is even slower than for those who are white. The executive director of the Presidents' Alliance on Higher Education warned that these students "are driving enrollment growth" and that it is "in the business interests of higher education institutions, of communities and states, because immigrant-origin students are also helping to drive workforce development."

In the face of one research report indicating that one-quarter of current students regret the decision to go to college, it is critical that differential costs per student and by type of institution be addressed. With taking on debt a common and growing burden, regret has to be replaced by a clear path to ensure return on investment. A task force composed of representatives from 32 states is beginning to outline a plan to bring state and federal efforts together to address the ROI question. The focus of the National Conference of State Legislator's report is the first effort to address national higher education concerns since 2006. Education Department under secretary James Kvaal noted that policy conversations are often in isolation and that the NCSL initiative offers the opportunity to build consensus around "a system that is open to everyone who needs additional skills and credentials, is affordable, and gives everybody a fair opportunity to graduate and go on to a career of their choice."