FOR IMMEDIATE RELEASE
3 a.m. PDT Thurs., Oct. 3, 2024 

CONTACT
Sara Sandhu, Senior Communications Officer 
ssandhu@collegefutures.org
(415) 287-1819 

College Futures Foundation says California’s diverse learners deserve transparency  on their education investment, challenges institutions to deliver on economic mobility 

Oakland, CA (Oct. 3, 2024) – New research from College Futures Foundation provides fresh insight into just how long it takes graduates to recoup higher education costs by specific programs of study at institutions across California, as well as where some fall short of delivering a return on investment (ROI).

The release of California College Programs That Pay: Measuring Return on Investment Across Majors and Credentials presents a new analysis of the kind of ROI that specific college programs in California provide their students. Lead author and researcher Michael Itzkowitz of the HEA Group examined over 260,000 graduates across 2,695 undergraduate certificate, associate’s and bachelor’s degree programs offered at 324 institutions within California.

The new research follows the foundation’s initial report published last spring on institutions’ ROI for low- and moderate-income learners, but this time goes deeper to examine the economic ROI across specific majors and credentials offered throughout the state. The May 2024 report, Golden Opportunities: Measuring Return on Investment in California Higher Education for Low- and Moderate-Income Learners, provided the foundation for important ROI discussions, and the new report provides more nuanced data to inform continuing conversations on the value of higher education.

“Postsecondary attainment must continue to be tied to economic mobility, as it is essential to creating a higher education system that drives a robust, inclusive economy in California,” said Eloy Ortiz Oakley, College Futures Foundation President and CEO. “Central to this research is showing which institutions and programs make that connection.”

The California College Programs That Pay report demonstrates that sometimes a student’s college major can matter more for economic ROI than the institution itself, Itzkowitz concluded. “We found outcomes for ‘time to recoup’ that differ across different programs at four-year institutions, two-year institutions, and certificate-granting institutions,” he said. “Some offer ROI in a short timeframe, and some offer little to no ROI whatsoever.”

Takeaways from the new research report include:

• • Nearly 9 out of 10 programs across California allow graduates to recoup their educational costs in five years or less.
  • Over a third allow their graduates to recoup their costs in less than 12 months.
  • Of the programs examined, 12% of college programs within California show their graduates taking five years or longer to recoup their costs, while 112 programs were found to offer no economic ROI to students with a majority of those graduates earning less than a high school graduate five years after credential-earning.
  • Associate’s degree programs tend to show the shortest time to ROI, with many enabling graduates to recoup costs within 1 year.
  • There are significant variations in ROI by field of study, with some programs like economics and nursing showing very strong returns, while others like music and cosmetology showing little to no ROI.

There are also substantial differences in ROI delivery based on the sector delivering the education and the length of time it takes its graduates to recoup their educational investment:

• • Almost all programs offered at public institutions (97%) in California show their graduates able to earn back the costs of obtaining a credential within five years. Nearly half (48%) allow this within one year.
  • Private non-profits generally take longer, as only 7% of programs allow graduates to recoup their costs within 12 months.
  • For profits show their graduates taking longer, and nearly a fifth of their programs (17%) show no economic return whatsoever.

Oakley and Itzkowitz both cautioned that the research should not be considered a denouncement of any specific program or desired area of study, but rather an opportunity for further research to understand why and how these institutions produce these outcomes and where there may be policy and practice implications.

“Learners deserve access to information so they can enter a program with eyes wide open about what they can expect, and institutions need to be transparent with their data and honest about how their programs deliver on the promise of economic mobility,” Oakley said.

Oakley, a vocal advocate for educational equity and innovation in postsecondary education, called on higher education leaders and institutions, elected and appointed officials, researchers and the public to absorb what the data shows and move toward healthy dialogue around change and improvement for delivering value and economic mobility.

College Futures indicated that its next ROI research will look to dive deeper into how institutions are increasing economic mobility for learners who are underserved.

# # #

About College Futures Foundation  

At College Futures Foundation, we believe in the power of postsecondary opportunity. We believe that securing the postsecondary success of students facing the most formidable barriers will ensure that all of us can thrive—our communities, our economy, and our state. We believe that the equitable education system of the future, one that enables every student to achieve their dreams and participate in an inclusive and robust economy, will be realized if we are focused, determined, and active in our leadership and partnership.