Institutions that predominantly offer associate degrees or certificates often have a higher return on investment (ROI) after 10 years than institutions that predominantly offer bachelor’s degrees. However, over 40 years, the value of bachelor’s degrees typically outpaces those of institutions that predominantly offer associate degrees and certificates. (See graph, below.)
The findings come from the Georgetown University Center on Education and the Workforce’s (CEW) updated return on investment (ROI) data tool, which lists all postsecondary institutions included in the U.S. Education Department’s College Scorecard. The tool includes nine years of data for an average of 4,600 institutions per year.
Why do associate degrees and certificates offer higher ROI in the shorter term, compared to baccalaureate’s higher ROI over a longer period? CEW explains that it reflects the lower cost of obtaining certificates and associate degrees, both in terms of average net price and time enrolled in a college or other learning institution.
CEW notes that the time spans used in institutional ROI calculations begin with the year of enrollment at an institution, not the year of completion. This means that earnings of students who have not completed their degree are also included.
The center plans to update its data tool annually in January, based on updated data in the College Scorecard.
