Elite private vs. public college ROI: Which is better?

Elite private college may not offer better ROI than public institutions
Students who pay less tend to have more money years after graduation
Some say college education invaluable, can't be assigned dollar amount

Updated: Apr 11, 2024 / 11:26 PM CDT

File photo of students in class. (Getty Images)

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(NewsNation) — Private colleges considered “elite” by many may have similar returns on investment as public institutions, according to a Bloomberg News analysis.

The review of more than 1,500 nonprofit four-year colleges suggests that “elite private institutions outside the eight Ivies” don’t necessarily offer a better ROI.

Vassar College and Oberlin College, for example, respectively return about 18% and 85% less, respectively, than the median ROI of all public schools included in the analysis, Bloomberg News reported.

More than 140 public institutions that admit most applicants have a 10-year ROI of about $135,000.

Students who pay less for school also tend to have more money in the years following graduation, the analysis found.

That’s not to say, however, that a costly education isn’t worth its money.

Colleges with more STEM graduates tend to see higher returns, and attending a more expensive school could earn students higher paying jobs down the road.

Some academics also argue that a college education’s full rewards can’t be accurately measured by the salaries of graduates.