Defining College Value
How Higher Education Influences Students’ Lives After Completion
ABOUT USA FUNDS
USA Funds® is a nonprofit corporation dedicated to Completion With a Purpose®, building a more purposeful path for students
through college and on to rewarding careers. We work with policymakers, employers, educators and students, across the nation
to help students get the most out of their educational experiences and ensure they are ready to compete and succeed in the 21st
century economy.
We advance Completion With a Purpose through strategic philanthropy, mission-directed investments and informed policy
discussions, with an emphasis on:
Catalyzing innovative policies and practices in the delivery of higher education and workforce development programs.
u Measuring the value of postsecondary education programs.
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Engaging employers to align educational outcomes with workforce demands.
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Supporting students — especially those at risk of dropping out and those disconnected from education and
employment — through key transitions along the path through education to careers.
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These efforts build on our nearly 60-year history to enhance preparation for, access to and success in postsecondary education
for our nation’s youth. USA Funds previously has served more than 22 million students and parents with more than $250 billion in
financial aid for higher education.
Fundamental to Completion With a Purpose is an understanding of the opportunities and benefits afforded by varying levels of
postsecondary credentials, including certificates, and associate, bachelor’s and postgraduate degrees, and the lifestyles these
credentials allow individuals to pursue. We call this college value.
THE IMPORTANCE OF UNDERSTANDING COLLEGE VALUE
Students and families are increasingly concerned about the rising costs of college and the value they receive in return for their
significant investment in a postsecondary education. Too many recent graduates are unemployed or underemployed, would
change their program of study if they could do it over, and are uncertain their investment in higher education was worth it.
Consumers of higher education want to know their expected return on investment (ROI), or college value.
They are eager to access information that can inform their decision-making about a field of study, level of attainment and choice
of institution. Knowing what majors are in demand in the job market, what institutions are producing graduates with the skills
needed to succeed, and how much graduates of specific programs at specific colleges earn after leaving campus is vital to their
planning. That’s where our work in helping education stakeholders understand the value of college is critical.
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By analyzing the investments made and returns received by students and taxpayers, USA Funds is working alongside partners
to assess students’ higher education ventures and create resources to educate other higher education consumers considering
similar paths. With a focus on college value, higher education providers and states can address students’ and families’ concerns
by equipping them with data and tools that illustrate critical links and opportunities between student goals and pathways,
institutional offerings and workforce needs. In doing so, we anticipate more students will complete their degrees on time, with
less debt and transition directly into a rewarding career.
MEASURING COLLEGE VALUE
USA Funds measures college value – the ROI of higher education – in both qualitative and quantitative ways. We look at tuition,
time, debt, job placement, wages, quality of life, and personal and job satisfaction, among other indicators, to determine if a
graduate’s path is the best choice for achieving a rewarding career and lifestyle goals. ROI data allows students to understand
how well graduates of a particular program at an individual institution fare. Are they able to pay off their educational debt? Are
they securing full-time employment in their chosen field? Is there employer demand for graduates of this program? ROI data
offers insights into these critical questions for students as they choose and plan an educational pathway to a rewarding career.
COLLEGE VALUE =
RETURNS (College Credential + Employment + Earnings + Work Engagement + Overall Well-Being) INVESTMENT (Tuition, Other College Costs + Foregone Wages + Student Loan Debt)
The majority of students report they enrolled in a higher
education program to increase their employability,
seeking to develop skills and competencies that they need
to obtain, advance or change a career. Some students,
however, pursue higher education as a means to grow skill
or knowledge in areas of personal interests and passions.
That’s why USA Funds also examines students’ and
graduates’ well-being and quality of life as they relate to
benefits afforded by their higher education. Do they have
the work-life balance they wanted? Are they pursuing their
hobbies and interests? Is their work meaningful to them?
Have they achieved the lifestyle they wanted? Do they feel
connected to their alma mater? These questions, among
many others, are also essential to measuring college value.
“Public universities have a responsibility to spend
students’ tuition dollars wisely. We must provide an
opportunity for a quality education that results in
students completing their degrees and achieving
their career goals.”
—P
eter McPherson, president, Association of
Public and Land-grant Universities, as quoted in
University Business
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ADOPTING COLLEGE VALUE ON CAMPUSES
Higher education institutions across the country are focused on
improving student success and outcomes. By adopting a focus on
college value, institutions can help students identify and select the
programs that allow those students to pursue their interests in a career
field that accommodates their lifestyle goals. Sharing these insights
with students will lead to improved results in student engagement,
retention and completion across the institutions and in chosen
programs, raising the overall reputation and value of that individual
program or college.
In addition, college value metrics provide faculty and administrators
the opportunity to see how well their students are faring in terms of
developing both soft and technical skills. If students and graduates
report high levels of workplace engagement, it is reasonable to
attribute in part that engagement to a program or institution due to
its role in developing students’ communication and critical thinking
skills as well as industry knowledge. If students and alumni are not
reporting high levels of engagement, then it could lead to a program
or institution examining its curricula or instruction to enhance its
effectiveness in fostering one or more of these critical skills.
USA Funds supported the addition of Gallup survey
data to Indiana’s existing College ROI reports to
highlight non-economic returns from college.
So, what can faculty and college leaders do to advance a campus
culture that embraces college value?
1. S
urvey alumni on the value and outcomes of their higher
education experience.
2. C
ollaborate with employers to ensure graduates are
equipped with skills and competencies needed in
the workforce.
3. E
xpose students to real-world work experience throughout
their years on campus.
4. I nfuse new strategies into academic and student support
services to reduce time to completion and ensure students’
career readiness.
USA Funds-supported Launch My Career websites
allow prospective students to check employment
levels, earnings and employer demand for specific
majors at specific colleges.
5. E
nsure all students benefit from student success and career
readiness initiatives.
To learn more about USA Funds’ measures of college value
and what states and institutions are doing to enhance
student success, visit www.collegevalue.net.
www.usafunds.org
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