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Understanding Return on Investment for College Degrees

Updated | Joe Wallace

Veterans who decide to pursue a degree face a difficult choice. Which school to choose among so many? A common starting point for many students is a traditional college ranking, such as the U.S. News & World Report list.

These rankings measure factors like endowment, faculty salaries, and peer reputation. For a student veteran, these metrics may not be the most important ones. The question is whether a school’s rank matters for a veteran.

ROI for College Degrees

A school’s prestige is not always a good measure of its value for a military-connected student. Veterans often have unique needs and experiences. A school’s ability to meet those needs is more important than its national rank. Veterans have access to specialized tools that provide better data to help them make an informed choice.

>> Find VA-approved schools with the College Recon School Finder tool.

Return on Investment is a key metric for judging a college’s value. It measures the financial benefit of a degree over a career. The primary source for this data for the purpose of this article is the Georgetown University Center on Education and the Workforce (CEW).

The CEW report ranks 4,600 colleges. It uses a metric called Net Present Value (NPV), which discounts future cash flows to their present value. The CEW calculation looks at a graduate’s lifetime earnings and subtracts the total cost of attending the college. This shows the true gain from a specific degree.

The report calculates NPV over 10 to 40 years. The 40-year Net Present Value provides the most complete picture of a degree’s value.

Recent Data for College Degree ROI

The 2025 CEW data shows which schools offer the highest returns, and that list is dominated by schools focused on science, technology, engineering, math (STEM), and health professions.

Top Colleges by 40-Year Net Present Value (2025 Data)

>> Find VA-approved schools with the College Recon School Finder tool.

Two Paths to High ROI

The 2025 data shows two main paths to a high return on investment for a given degree program. The first path is the specialized institution. This includes schools like the University of Health Sciences and Pharmacy, Harvey Mudd, and Caltech.

These schools focus on lucrative fields, training engineers, doctors, pharmacists, and computer scientists. Their graduates enter high-paying fields immediately, which may explain the high 10-year NPV.

These degrees also have long-term value. The skills learned are in constant demand, potentially leading to high earnings over a 40-year career.

The second path is the elite, traditional university. This includes MIT, Princeton, and Stanford.

These schools also have strong STEM programs, but they add another layer of value. A degree from these schools opens doors to exclusive opportunities in finance, law, consulting, and management.

Short-Term vs. Long-Term Value

It is important to consider short-term value for the degree program, since not all students plan a 40-year career. The CEW report shows that associate’s degrees and certificate programs often have the highest ROI in the short term (10 years).

The 2025 data is clear: bachelor’s degrees create the most wealth over a lifetime. The 40-year NPV for bachelor’s degrees almost always surpasses that of associate’s degrees.

Your Major Matters Most

The biggest factor in ROI is your field of study. Engineering, computer science, and health degrees will continue to top the list. A degree in a low-paying field, even from an elite school, will have a lower NPV.

Public Schools Are Strong

The top 10 list includes public schools like Georgia Tech and the Merchant Marine Academy. Many state universities offer an excellent return, featuring lower tuition, resulting in lower overall student debt. The financial gap between high-performing colleges and low-performing colleges is growing. Students must use data to make smart choices.

Why Traditional Rankings Can Fail Veterans

Traditional college rankings systems were not designed for non-traditional students. Veterans, who are often older and have more life and work experience, fall into this category. The metrics that create these rankings are often irrelevant to a veteran’s journey.

Most rankings place a heavy weight on inputs. This includes incoming freshmen’ SAT/ACT scores, high school class rank, and acceptance rates. A student veteran’s application relies on military service and life experience, not high school performance. These metrics offer no value to them.

Other factors, like alumni giving rates or student-to-faculty ratios, are also poor indicators for veterans. A low ratio does not guarantee flexible course access or professors who understand the challenges of an adult learner.

These lists rarely answer the most critical questions a veteran has:

  • Does this school accept 100% of the Post-9/11 GI Bill?
  • Does it participate in the Yellow Ribbon Program?
  • Will I receive credit for my military training?
  • Is there a strong support system for veterans on campus?
  • Does the program offer night classes or online options?

This does not mean rankings are useless. In some specific cases, a high rank can be an important factor. For veterans aiming for careers in law, finance, or high-level corporate management, prestige can matter. The value here is the education and access to the alumni network.

Metrics That Matter More Than Rank

For most veterans, a “good” school is one that delivers value and supports their transition. Benefit acceptance is the most important factor. A public school that accepts the GI Bill and offers in-state tuition to all is a great value. A private school is only a good value if it participates in the Yellow Ribbon Program, ideally with an “unlimited” contribution.

Veterans have earned college-level credit through their service. A school with a generous policy for accepting credits from a Joint Services Transcript (JST) can save a veteran thousands of dollars and months of time.

A school that is truly “military-friendly” invests in its student veterans. This includes a dedicated veteran resource center, on-campus staff who can process VA paperwork, and a community of other student veterans.

Most veterans are adult learners. They may have families or full-time jobs. The “best” school is one that offers night classes, online degrees, or hybrid programs that fit a busy schedule. The final metric is results. What is the graduation rate for veterans? What is the median salary for graduates of that specific program? What is the median debt?

The Right Tools for Veterans to Use

Instead of relying on commercial rankings, veterans can use free tools to learn more about the schools they’re interested in applying to.

  • Find VA-approved and TA-approved schools with the College Recon School Finder tool.
  • The VA GI Bill Comparison Tool should be the starting point for every veteran. It provides specific data for each approved school. A veteran can see the school’s tuition, the amount the GI Bill will cover, and the exact Monthly Housing Allowance (MHA) for that campus’s ZIP code.
  • The DoD TA DECIDE Tool is for active-duty service members using Tuition Assistance (TA). It is a college comparison tool that only includes schools that have signed the DoD Memorandum of Understanding. It provides data on tuition rates, credit policies, and graduation rates.

 

About the author

Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.

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