New Jersey Institute of Technology (NJIT) continues to demonstrate the value of its educational offerings in science, technology, engineering and mathematics (STEM), according to a new report from PayScale. NJIT graduates have the eighth largest return on investment (ROI) among public colleges and universities in the U.S. and rank #1 in New Jersey, New York, and Pennsylvania.
The PayScale ranking is the most recent attestment to NJIT’s tremendous value proposition. Last year, BuzzFeed.com ranked NJIT as the #1 value among colleges and universities nationally, seven spots ahead of Princeton University and 10 above MIT, as well as many other highly regarded institutions. NJIT earned the top spot among all U.S. colleges and universities because the average starting salary of its graduates nearly doubles the annual tuition fee charged to out-of-state students. Using NJIT’s tuition rate for New Jersey residents increases the university’s value proposition, making alumni average starting salaries nearly four times greater than NJIT’s annual tuition cost.
Return on investment is calculated as the total income a graduate will earn after 20 years of working, minus what they would have earned as a high school graduate, the cost of college tuition and the average financial aid amount awarded at the college. The 2014 College Return on Investment (ROI) report revealed a strong, positive correlation between STEM-focused schools and ROI. Schools with a higher presence of STEM majors tend to have higher overall ROI figures. The average 20 Year Annualized ROI of the included schools is 10.4 percent. For comparison, as of Feb. 11, 2014, 20 Year U.S. Treasury bonds were yielding an annual return of 3.4 percent. Therefore, the typical person that attends a school in this report and graduates will earn more in 20 years as compared to someone who takes the tuition money and invests it in a 20 Year Treasury bond and works straight out of high school.