Summary
- In other words, return on investment (ROI) in higher education measures the value you get from your degree compared to the total cost of earning it.
- A business administration degree would cost you double at the University of Miami than it would at Liberty University.
- A lower-cost university with a strong track record of employment can offer far better ROI than a prestigious but high-priced institution.
A typical bachelor’s degree shows a 4.09% return in its first decade. Graduates need an average of 11 working years to break even. In contrast, professional degrees can deliver a 2,249% ROI over a 40-year career.
Do you consider these figures before choosing programs for your study abroad plan? If you do, great! If you don’t, it’s not too late.
When you are choosing an astonishingly expensive degree at an international university, ROI matters more than status.
Ivy League schools may be prestigious, but many public universities and specialized private programs give better financial returns. But how do you calculate those returns?
Read on to learn the A to Z of university rankings, ROI, and career outcomes.
Understanding ROI in higher education
When considering international schools, ask yourself, “Is the money and time I invest in this university worth the career and salary I’ll achieve afterward?”
If your answer is “yes,” the university has a good ROI, and if it is “no,” it doesn’t.
In other words, return on investment (ROI) in higher education measures the value you get from your degree compared to the total cost of earning it. You should always get back more than you spend.
You can calculate ROI with this formula:
ROI = (Net Return / Cost of Investment) x 100%
Several factors influence a university’s ROI:
- Cost of attendance, which includes tuition, living expenses, travel, and any additional program costs, is the first factor. Scholarships, grants, and financial aid can lower your overall investment drastically. This in turn improves your potential ROI irrespective of your career outcome.
- Another key element is opportunity cost. Higher education is optional. Consider the money you could have earned if you were working instead of studying. This is important for longer or more expensive degrees. Unless your university has great career prospects, it doesn’t make sense to invest loads of time and money.
- Projected future earnings are the most crucial figure. It depends on your major, career field, location, and industry demand. Graduates in fields like technology, engineering, healthcare, and finance often see higher ROIs compared to those in lower-paying sectors.
There is a misconception that ROI simply equals your annual package after finishing school. That is the wrong way to think about it.
ROI isn’t just about maximizing salary—it’s about making sure your education leads to meaningful career opportunities that justify your investment.
Key metrics for evaluating career outcomes
Will your institution support your career goals? Or is it just boasting a fancy name tag alongside impressive but meaningless figures? The answer lies in five key metrics:
Financial Considerations
Cost matters the most when selecting a university.
A business administration degree would cost you double at the University of Miami than it would at Liberty University. Location and school status have a great influence on this cost difference.
But if you have a scholarship or grant, the net expense drops. That’s why you need to look beyond the sticker price.
Consider housing, books, and other fees. Compare this to the average salary in your field. A lower-cost university with a strong track record of employment can offer far better ROI than a prestigious but high-priced institution.
Factor in time as well. A five-year degree delays your entry into the workforce. But co-op options let you finish faster and also include paid work experience. This way, you can earn money sooner.
University Rankings
A high-ranking university might not give you a satisfactory ROI. Because rankings focus on research output and faculty reputation, which don’t have any direct link to students’ career prospects.
However, a school’s reputation does impact hiring opportunities. Prestigious institutions have strong corporate relationships, exclusive recruitment events, and influential alumni networks. For instance, MIT and Stanford graduates can easily access Silicon Valley’s top tech employers through established hiring pipelines.
That said, many lesser-known schools excel in specific fields. For instance, Purdue University is renowned for engineering, while Bentley University ranks among the best for business. That’s why you must research program-specific rankings instead of relying on general reputation.
Employment Rate
A university’s job placement rate reveals its true career value. Look for schools with at least 70% employment within six months to a year of graduation. This metric proves that employers actively recruit graduates from these universities and that their programs meet market needs.
Don’t settle for general employment statistics. Investigate field-specific results; a university might have a strong overall number but weak placement in your discipline. The best institutions have robust career services, structured internship programs, and direct industry connections that give students an advantage.
Most importantly, verify whether graduates land jobs in their field. High underemployment rates indicate poor career preparation. Always review official placement reports and cross-check with reliable sources like the U.S. Department of Education’s College Scorecard for verified data.
Alumni Success
Alumni networks are powerful yet underestimated. Graduates from well-connected universities benefit from mentorship, referrals, and exclusive job openings. For example, Harvard Business School’s alumni network is a powerful resource for finance and consulting roles.
Check if the university hosts alumni panels, networking events, or mentorship programs. Research the achievements of past graduates from your program—where they work, what industries they dominate, and how far they have progressed in their careers. Some universities boast alumni who become CEOs, leading researchers, startup founders, or global thought leaders.
While not every student will follow the same path, a university that consistently nurtures standout talent likely has the infrastructure—curriculum, faculty, industry ties—to help you excel too. Engaging with successful graduates can be inspiring. But beyond that, it gives valuable connections that can take you very far.
Long-Term Growth
Starting salaries are trees, and career growth is the forest. A university that teaches you critical thinking, leadership, technical skills, and adaptability prepares you for decades of career evolution. For example, computer science graduates from Carnegie Mellon see rapid salary increases due to high demand in tech. In contrast, some arts degrees plateau early without further specialization.
Always look ahead for
- Salary growth over 10+ years (Payscale’s data shows STEM often outpaces other degrees)
- Advanced study opportunities (Do graduates get into top MBA or medical schools?)
- Industry demand (Is the field growing or at risk of automation?)
- Leadership trajectories (Does the university produce a lot of executives?)
- Entrepreneurial support (Stanford and MIT help graduates launch businesses)
This long-term lens helps you identify future-proof degrees.
Tools and resources for data-driven decision making
Choosing the right university based on ROI and career outcomes can feel overwhelming. But some tools and resources can make a big difference.
University Selection Tools
Platforms like GradRight offer personalized university matching based on your academic background, career goals, and financial situation. Instead of recommending universities based purely on rankings or popularity, GradRight highlights programs based on ROI.
It factors in tuition fees, living expenses, available scholarships, and realistic salary expectations after graduation. By using such a university selection platform, you can easily know how quickly you could pay off an education loan and how profitable your degree would be over time.
Salary and Employment Databases
Use salary data to see if a degree pays off. Sites like PayScale, Glassdoor, and the College Scorecard show what graduates earn from different schools and programs. Compare these numbers to tuition costs to get the real picture.
Schools use this data too. They track what their graduates earn to see if they’re keeping up with industry pay. If business majors from a university average $60k while the industry standard is $65k, that program needs improvement. Tech schools constantly update programs when they see salaries rising in fields like AI or cybersecurity.
To use this data to your advantage and avoid overpaying for a degree:
- Check if graduates from your program earn more or less than the average
- See if salaries justify the tuition (a $100k degree with a $45k starting salary does not make sense)
- Look at 5-10 year earnings, not just starting salaries
Career Outcome Reports
Most schools publish these reports annually to track students’ career results. They include starting salaries, so you can compare earnings to tuition costs. They also measure job satisfaction to show whether graduates feel prepared. Most importantly, they reveal trends—which fields are growing and which are shrinking. Say 90% of Cornell computer science graduates secure tech jobs with average salaries of $85,000. You can deduce the program delivers results.
Schools use this data to improve their programs. You should use it to make smarter decisions. Check whether the reports show clear career paths in your field. Look for evidence that graduates land jobs with growth potential. This is how you avoid degrees that lead to dead-end careers.
Financial Aid and EMI Calculators
Financial aid calculations show what you’ll pay after scholarships and grants. Use your financial details to understand what need or merit-based aid you qualify for. For example, if a school costs $30,000/year and you get a $20,000 scholarship, you only pay $10,000, which is a big save.
Then there are EMI calculators. It combines your education costs with expected salaries in your field. You can learn how long it will take to pay off your debt and what you might earn over your career. Look for programs where graduates outearn their debt within 5-10 years.
Tips for making the best choice
Here are lesser-known but critical tactics so you can pick a school that maximizes your ROI:
Talk to Current Students (Not Just Alumni)
Alumni often have outdated perspectives. Instead, connect with juniors and seniors via LinkedIn or campus visits. Ask, “What do you wish you knew before enrolling?” or “How responsive is career services to individual needs?”
Audit a Class Before Committing
Many universities allow prospective students to sit in on lectures. Observe whether classes are taught by professors or overworked TAs. Note whether the curriculum is theoretical or hands-on (critical for fields like tech and business).
Understand Earning Potential by Specialization
Not all degrees yield the same salaries. Read salary reports for your specialization across different countries. Choosing a slightly different major (say, data science over computer science) could make a big financial difference later.
Probe into the Overlooked Facts
Ask departments what percentage of students in your major land internships and if the universities have dedicated industry advisors. Prioritize schools with guaranteed career outcomes. Some institutions, like Northeastern (co-op program) or Waterloo (STEM internships), require work experience to graduate, virtually eliminating underemployment risk.
Check the Second-Choice Employer Pipeline
Top companies recruit at elite schools, but where do mid-tier firms hire? A school with strong regional ties (e.g., UT Austin for Texas oil or gas) may offer better odds than a prestigious college with hyper-competitive recruiting.
Negotiate your Loan Offers
If you are using a tool like GradRight’s loan search platform, don’t settle for the first offer. Compare, negotiate, and ask lenders for customized repayment options based on your career plan. A small difference in interest rate can save you thousands over time.
Explore Post-Study Work Options
Each country has different visa and work policies for international students. Investigate whether you can stay and work after graduation and for how long. Your return on investment could heavily depend on these rules.
Calculate the Hidden Cost of Location
Don’t just look at the tuition fee. Factor in living expenses, health insurance, visa costs, and potential travel back home. Sometimes, a lower-ranked university with affordable living costs can offer a better ROI than a top-tier school in an expensive city. This is all the more valid after you get a job. A $70K salary goes further in Raleigh than in San Francisco.
You reap what you sow
As Warren Buffett said, “Price is what you pay. Value is what you get.” The same applies to education.
Don’t fall into the trap of a high-priced degree with low-value career options. Instead, rank universities by their proven ROI. Look beyond status and reputation to find programs where your investment will grow over time. Select the right university that will keep paying dividends throughout your professional life.
