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College and University Discussion
Reply to "Something to think about when choosing a college this spring"
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[quote=Anonymous]10:10 again. I just clicked through the list of schools with the lowest returns on investment. First, a 7-8% ROI isn't bad in this market. Most bonds and many other investments are doing a lot worse. I think Bloomberg is actually asking, "could you do better at a different college?" The answer is clearly "yes," because the average for all colleges, which is their benchmark, is a 9% ROI. So if you're choosing between Brown and Skidmore, the answer's pretty obvious that your job prospects are going to be better coming from Brown. But anyway, with a 7-8% ROI for even these lowest performing schools, you don't need to consider intangibles, like becoming a more well-rounded person, to your return measures to justify attending one of these colleges. Even at just 7-8% for the purely financial return, these are probably a decent return. Second, a lot of these schools offer really generous financial aid to a kid with a decent GPA and scores. Philadelphia University (formerly the Philadelphia College of Pharmacy, I think), which is on the low ROI list, sent DC a letter offering $15,000/year for four years - and DC hadn't even applied or sent an indication of interest to them. More FA means lower costs and higher ROI.[/quote]
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