The college ROI conversation needs a reframe. Yes, some credentials don't pay off financially, but lumping all degrees together risks steering students away from good decisions.
A recent report from the Postsecondary Commission, one of the most in-depth college value studies I've seen, tracked students across 15 years, finding the average bachelor's degree generated roughly $87,000 in net value-added earnings above what comparable non-enrollees earned. As a business school dean, I must note that business and economics degrees ranked second only to engineering/ architecture, outpacing most fields. The Education Data Initiative shows a bachelor's degree in finance or business finance carries an average ROI of 1,581%, paying for itself within four years in the workforce.
A common myth is that where you go matters more than what you study. The research tells a different story. Degree program choice explained 35% of earnings variation across graduates, while institutional choice accounted for only 20%. What students study matters in terms of ROI. When comparing schools, students and families should ask about curriculum rigor, career placement rates, real-world learning opportunities, and how programs connect to employer demand.
Students should compare net cost versus expected earnings by major—not just sticker price. Institutions must close the loop between classroom and career and be transparent about outcomes (see: https://www.american.edu/weknowsuccess/). Employers must re-engage with programs and clarify what skills they actually value. At Kogod, for example, each major has an Advisory Council of alumni who advise faculty on skills junior employees need, and how to map them to our curriculum. Policymakers must invest in the data infrastructure that enables these comparisons, because currently, most students make six-figure decisions without the information they deserve.
Many degrees still deliver—but only when programs are designed with outcomes in mind and students are intentional about how they use them.
Deutsch, Jonah, Whitney Kozakowski, Naihobe Gonzalez, and Jessica Wagner. Measuring the Economic Returns to Postsecondary Education at Scale: An Analytic Framework and Findings from Texas. Mathematica for the Postsecondary Commission, May 2026. Measuring-the-Economic-Returns-to-Postsecondary-Education-at-Scale.pdf
Education Data Initiative. "College Degree Return on Investment." Updated May 13, 2026. https://educationdata.org/college-degree-roi. educationdata
Kogod School of Business, American University. "Learn More About Kogod's Graduate Programs." 2025 Graduate Survey. https://kogod.american.edu/learn-more/graduate kogod.american
"These College Majors Pay Off Over Time." USA Today, June 25, 2026. https://www.usatoday.com/story/money/personalfinance/2026/06/25/best-paying-college-majors-over-time/90647916007/usatoday