Ranking of Universities with Highest ROI Released: Ivy League Schools Fail to Make the Top 10!

In 2024, college grads’ median pay stands at about 37% higher than median pay for those without a bachelor’s degree, at $78,400 compared to $49,400, according to the analysis from compensation firm PayScale. Among the universities with the highest return on investment, no Ivy League school made the top 10, and the major you choose plays a crucial role in determining your income.

People with a college degree earn 37% more annually than those with only a high school diploma. This fact should dispel the “college is useless” argument. A report from the research center also noted that college graduates accumulate three times more wealth than those with lower levels of education.

“Despite the skyrocketing cost of tuition and dwindling enrollment numbers, our data shows that a college degree is still valuable in today's job market based on better salary outcomes,” Amy Stewart, principal, research and insights at Payscale, said in a statement. However, another study from the company found that not all college degrees contribute to better economic prospects. She advises students to carefully select their majors to avoid struggling with student loans later on.

When calculating the return on investment based on total salary earned over 20 years after graduation, minus total expenses during the study period (tuition and living costs), no Ivy League school made it into the top 10.

The top 10 schools, in order, are: Harvey Mudd College, Massachusetts Institute of Technology (MIT), United States Merchant Marine Academy, United States Military Academy (West Point), United States Naval Academy, SUNY Maritime College (in-state tuition), Colorado School of Mines (in-state tuition), SUNY Maritime College (out-of-state tuition), United States Air Force Academy, California Institute of Technology (Caltech).

Western powerhouse Stanford University ranked 17th, with Ivy League schools Princeton and Harvard coming in at 19th and 20th, respectively.

Harvard costs $311,000 for four years, with a return of $1,032,000, which is far lower than the United States Merchant Marine Academy, which charges $24,500 in tuition for four years and offers a return of $1,352,000.

It is widely believed that the choice of major is the biggest factor in determining investment returns. STEM majors typically earn more than those in the humanities. For example, a 2023 report by HEA Group on the value of universities revealed that graduates with a major in Operations Research (which focuses on problem-solving skills, decision-making methods, and efficiency) earn $112,000 annually four years after graduation, while those who majored in Music only earn $34,000 annually.

This explains why STEM-focused schools such as Harvey Mudd College and Caltech rank highly in investment returns, with returns of $1,426,000 and $1,138,000, respectively.