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Increasing ROI on Your Investment in College

Nov 01, 2022

Calculating a precise Return on Investment (ROI) of a college degree is less important than taking actions that will result in better returns. We can put the calculator away and think simply about how to increase the Return on Investment for education.

Maximizing educational ROI boils down to:

  • Minimizing the total amount paid for college (the “cost”), and
  • Increasing the income earned from the college experience (the “return”).






May 29th (5/29) is National 529 Day and by extension May is frequently known as 529 Month, both great reminders and opportunities to save and invest for college. But remember, as May comes and goes, every month is a good time to save for college. Getting started, saving systematically (month over month), and putting time on your side are the keys to achieving your college savings goals and fulfilling your higher education dreams. Even small contributions made consistently can make a big difference over time and reduce your reliance on borrowing. 



College admissions decisions are arriving – a joyous time for students relishing their success. A disappointing moment when dream schools say no. No matter which, these emotions will soon be overrun by the reality of making a school choice. And then figuring out how to pay the coming college bill. Lurking under it all: how much student loan debt will be required to get to graduation?


  1. It’s cheaper to save than to borrow:

Regarding college expenses, today’s environment is much more multidimensional than the old maxim of “a dollar saved is a dollar earned”, as many utilize student loans to cover the rising cost of higher education. Having to borrow becomes a much more costly endeavor long term, whereas savings is a more attractive option. For example, saving $100 per month averaging a 4% rate of return compounded annually over 18 years would produce about $31,437.