The 2015 Payscale College ROI report just came out this week. If you are anything like me you really don’t care. I mean really, I had to ask my mom what ROI stands for! (Return on Investment) But after taking a closer look I realized that it is a report teens should look at every year as we get closer to college age and decide where we might like to attend.
First of all let me tell you a little about Payscale. They are a company who collects data about salaries in all types of fields. You can go to their website and see how your pay compares with other people who do the same type of job as you. It’s a good resource for companies as well because Payscale helps them decide how much compensation to give their employees. Each year they produce the Payscale College ROI report that reveals the best college values from an investment standpoint. It also shows which college majors produce the most income over 20 years. Just click HERE to see their report.
Knowing which schools offer the best value and which majors produce the most income is helpful info to have for a high school student, yes? There is no doubt in my mind that choosing a college is one of the biggest financial decisions you will make in your lifetime.
Payscale sent me a report based on their findings and I drew a few conclusions from the report (with a little help from my mom). Please understand that these are MY conclusions and do not necessarily represent Payscale. 🙂 Here they are:
*Every single high school student reading this should immediately plan to major in math or computers if at all possible.
*Every single high school student reading this should immediately put in their application to Harvey Mudd College. And no, I have never heard of it nor do I have any idea where it is located…
*If you want to earn as little money as possible then you should major in art, design, religion or music.
*Generally speaking state schools have a better ROI than private schools.
The people at Payscale even compared the stock market ROI of many large firms to that of colleges and you can see that report HERE.
Obviously, my conclusions probably do not exactly reflect the findings but the report is clear. Engineering schools produce a higher ROI as well as math/computer majors. Unfortunately many of us are not cut out for a future involving math nor is the amount of money we might make the most important thing to us.
This information is really helpful in many way though. If you are going to major in music then taking out $60,000 in student loans might not be wise because you will have such a hard time paying everything back. Not that taking out $60,000 in student loans is ever truly wise if you ask me…
Lydia Frank of Payscale said it to me this way: “We don’t believe everyone should major in a STEM field, but we think it’s crucial that students understand future earning potential for careers they’re interested in when making decisions about how much to borrow in student loans to fund their education and whether to attend a more or less expensive school.”
I am still convinced that attending my local community school is the best thing I can do at this point to reach my goal of attending college debt free. What are your college plans? Do you think that a report like this might influence where you go to school or the major you choose?