Why Should One Opt For An ROI Based Higher Education?

Higher education in India is considered as an investment, where an individual dedicates time, resources and money to improve their professional skills and earn a lucrative salary. An estimated 5.53 lakh Indian students are studying abroad in 86 countries as per government data.

Photo Credit : Shutterstock,

Getting a college degree is a very important investment for both students and parents. People generally measure this by checking the amount invested, i.e. fees against the package that they get after two years of their MBA education. Getting a job with a much lesser package than the amount invested can result into a negative ROI. The threat of global economic downfall is growing and the student's debts are increasing at a higher rate. Selecting the right higher education is important but more important is to look forward to calculating the ROI.

For many, higher education earns a good return, but this is not the same for all the students. The return on investment in education can be based on factors   like the duration of course, completion of certification, job opportunities, job profile, getting a lucrative salary, economic conditions, demographic background of the students,  etc. The best way to consider for a college and narrow down on the university is by comparing the tuition fee of the college with the average package that a student gets. 

What is Return on Investment when it comes to higher education?

Selection of right college and the right programme is of utmost importance. The basis to finalize a degree program depends on a lot of factors:

  • Brand reputation of the college
  • Legacy of the college
  • Placement record of the college
  • Average package that the college promises 
  • Educational reforms and innovative initiatives by the college

As an individual, people look forward to job security, growth opportunity, monetary benefits, and job satisfaction. Over the decades, there has been a huge increase in the number of universities and the education choices that a student has. An estimated 5.53 lakh Indian students are studying abroad in 86 countries as per government data. This shows that going abroad is a preferred option amongst Indian students for higher education. But do these students really check for the ROI before opting for a foreign degree?

The surest way to get the best return on your investment is to work for reputed organizations, be it a startup or an MNC. Enrolling yourself in a reputed college can ensure a good package along with an accelerated growth for your future. 

How to Calculate the ROI for Higher Education?

The return on investment can be calculated based on 5 crucial factors:

  • The Fee You Will Pay: This is the first question to be answered before getting admission into any college or university. The net price is calculated based on the tuition fee, room rent, books, board and other fee which you are required to pay until you graduate. 
  • Potential Debt: This is where you need to plan your finances well. The potential debt includes the total scholarship and the loan taken. The calculation of this will help you to calculate the debt, which has to be repaid, in order to earn the degree.
  • Duration of Graduation: The total course duration, how soon you can take up a job and start earning?? Will it take an extra year to get a job, or will the campus placements take care of getting a job as soon as you complete the program? Assess these options carefully. 
  • Earning Potential: What is the earning potential of the program undertaken? This is the major factor in calculating the ROI. If you have to choose an occupation that does not pay well, and doesn’t have a promising future,  it can have a negative effect on the ROI.
  • Missed Income: This is another crucial question whether you want to take up an additional degree or continue with the current job. The longer time you spend to earn the degree, the more job opportunities you are likely to miss. Hence, select wisely before making a critical career decision and do not ignore the opportunity cost.

Why Opt for An ROI Based Higher Education?

  • Lesser Debt: Once an individual starts working, there are many expenses that he needs to incur. Hence debt which needs to be repaid should not continue for a long time. This will make sure that the individual is monetarily stable and independent. 
  • Lower Risk: Once you have calculated the ROI for your education, you would be well aware of the cost-benefit aspects, hence you can plan the future accordingly. Awareness about return on investment will reduce the chances of career and financial risk.  Once you have calculated ROI for higher education, you can make the right career choice without compromising on the monetary benefits and future prospects. 

To sum up it can be said that return on Investment in higher education can be considered to be the expected gains after education, in terms of salary, job stability, professional growth, opportunities for self-employment and undertaking entrepreneurial initiatives, etc. All this calls for careful understanding of the educational scenario, right selection of an educational program and entering into a good college imparting quality education. 

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house

Tags assigned to this article:
return on investment roi higher education india

Around The World

Our Publications