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You May Get a Better ROI Ditching the Ivy Leagues for Public Universities

The Huffington Post 20/10/2015 Monica Leftwich

In 1972, the yearly tuition cost for a private school was about $1,832 and for public schools it was $428.
Today, these yearly costs are $31,231 and $9,139 respectively.
It's no secret the cost of education has imploded to rates that leave some people completely turned off to the idea of higher education.
In fact, earlier this year, Kate Gibson stated on CBS Money Watch that folks opt out of going to back to school due to finding better jobs, school closures, and folks just being exhausted with the whole education concept.
Then there's the impression that you must attend an outrageously unaffordable Ivy League school to get the edge you deserve in a fiercely competitive job market.
Luckily, it's not as bad as you think.
Folks at Lexington Law, did a study comparing the ROI of the top 20 public and private universities in the nation. And the results may surprise you.
Bottom line, unless your family has old money stashed away somewhere, you're more likely to get a better return on investment from a public school than most private schools in the country.
So let's take a look at some of the more compelling findings of the study to justify this.
Save over $22k choosing public over private
The study reported that the average yearly tuition of a private institution is about $31,231 and $9,139 for public schools. Simple math shows a difference of over $20,000.
Let's add on some common lifestyle expenses. On average, you'll shell out about $14,000 a year on caring for a kid, $30,000 just to marry your sweetie, and $30,000-$35,000 paying off student loans for the next several years.
The decision to save $20,000 should a no brainer to the average Joe or Jane going to school for the first time or returning to school to complete a second or third degree.
You'll have better ROI with public schools
The most compelling part of the study includes a ROI analysis against public and private schools.
The study states that private intuitions could add an additional 4 four years of student loan debt to your tab, possibly interfering with your retirement savings. On the flipside, it also states that a private school degree could add an extra 10% to your income.
But you may not even see that 10% if you have other expenses in life like a family and a mortgage.
A peek at that chart below shows a similar rate in earnings netted from a public and private degree, especially when someone's in their 40s and 50s. The earnings change, favoring private school degrees, but not by much.
2015-10-17-1445053178-5231163-ScreenShot20151016at11.06.43PM.png © Provided by The Huffington Post 2015-10-17-1445053178-5231163-ScreenShot20151016at11.06.43PM.png
So if you feel a certain degree of jealousy because your Ivy League friends appear to be better off than you, you can stop now. Considering their family obligations and debt, you may in fact be far better off.
Additionally, the money you make from your degree versus what you paid for can be the main reason for choosing private over public. But you may want to reconsider when looking at the next chart from the study.
When you're making a decision to attend a school, you want to make sure your money is not being spent in vain. The chart below shows that, on average, the top 20 public schools in the nation could give you anywhere from almost 5% to 2.5% ROI, while the top 20 private schools may produce 2.1%-1.3%.
2015-10-17-1445053317-5285365-RankingUniversitiesROI.png © Provided by The Huffington Post 2015-10-17-1445053317-5285365-RankingUniversitiesROI.png
No one should ever argue the prestige that comes with schools like Princeton, MIT or Yale, which could never be measured.
But good grief! Do folks have to be in mountains debt till their 70 just enjoy the full benefits of those schools simply because they didn't come from well-to do backgrounds? We've all heard about that awfully gifted young man or woman who sadly had to bow out of Northwestern or Notre Dame because their folks simply couldn't carry that financial weight for decades.
But it turns out a degree from these schools simply may not always make financial sense, even if mom and dad can afford it.
You may ultimately get a better bang for your buck turning down the prestige of saying you graduated from Duke for a more economical but still impressive education from the University of Florida.

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