Texas A&M Ranks Top In Texas Publics For ROI

Texas A&M University ranks first among public institutions in Texas in return on investment (ROI) – what a graduate earns compared to typical college costs incurred – according to listings posted online by PayScale, Inc.

The online firm that compiles employee salary data nationally shows Texas A&M to have a 12.7% ROI, based on its typical costs, using a 2009 basis, compared to its 30-year ROI adjusted to reflect 2010 dollars. Texas A&M’s ROI, as shown in the survey, is even better than that for the two top-rated schools: MIT and Cal Tech, both of which had ROIs of 12.5%. The major determination in PayScale’s numerical rankings is the total cumulative estimated net salary for 30 years, combined with several other factors.

Rice, the only other Texas university to be included among the top 100 schools nationally in the survey, is credited with an ROI of 11.8%.

PayScale conducted a survey last year that showed Texas A&M graduates on average earn higher salaries midway through their careers than counterparts from any other public university in the state. Texas A&M graduates were shown to earn $95,000 annually at the midpoint of their careers.

Texas A&M’s placement of 71st nationally – among 852 colleges and universities included in the survey – was based on in-state costs of $88,540, considered typical for an undergraduate earning a degree, and a 30-year total of $816,000 that was derived after several variables were calculated for a final adjusted figure . MIT’s comparative figures are $189,000 and $1,688,000.

Colleges are ranked by PayScale according to a 30-year net ROI, which the report calculates by considering how much more a graduate would make than a high school graduate over 30 years and subtracting the “sticker price” of the college. The figure is then multiplied by the college’s graduation rate, with other considerations also factored in.

Highlights of the PayScale survey, including listings and methodology, can be viewed at http://www.payscale.com/education/average-cost-for-college-ROI.