A new report from the College Futures Foundation,
California College Programs That Pay: Measuring Return on Investment Across Majors and Credentials, shines a spotlight on California State University campuses that enroll high proportions of low- and moderate-income students
and offer a significant number of programs that provide a quick return on investment.
The report looked at a select group of universities that includes eight CSU campuses (Bakersfield, Dominguez Hills, Fresno, Los Angeles, Northridge, Sacramento, San Bernardino and Stanislaus) and the University of California, Merced. The College Futures Foundation had previously identified these nine institutions as enrolling a high proportion of low- and moderate-income students and providing them with a quick ROI.
The organization found that for these nine universities, more than half of the institutions' programs enable graduates to recoup their educational costs in under a year.
Furthermore, 99% of the programs of study at these nine institutions allow students to recoup their investments in five years or less.
And for each of the most popular bachelor's degree programs offered at these institutions (business, communications, psychology, sociology and nursing), the longest it takes students to recoup their educational costs is 2.3 years.
The report noted that students are responsible for less than $11,000 in out-of-pocket costs per year at each of these institutions, and several cost less than that amount.
Earlier Reports Highlighted ROI at CSUs
The new report is one of several recent research projects that highlight the positive return on investment for a CSU education.
The new College Futures Foundation report is a follow-up to an earlier report by the same organization that looked at the ROI for low- and moderate-income learners at institutions throughout California. (Whereas the new report looks at programs, the earlier report broke down the data by institution.)
Golden Opportunities: Measuring ROI in CA Higher Education for Low- and Moderate-Income Learners, released in May, found that a degree from the California State University has a particularly high return on investment for that group of students. Among all institutions in California, Cal State San Bernardino (7) and Cal State LA (8) both ranked in the top 10 for allowing learners to recoup their costs in the shortest amount of time.
That report also analyzed institutions that enroll a high proportion of low- and moderate-income students, with 50% of the student body made up of Pell Grant recipients.
CSUs dominated this analysis, with the report specifically highlighting Bakersfield, Dominguez Hills, Fresno, Los Angeles, Northridge, Sacramento, San Bernardino and Stanislaus as having a quick ROI for those students. These calculations assumed a four-year bachelor's degree completion rate.
Also in May, a report from Georgetown University's Center on Education and the Workforce showed that public universities like the California State University provide higher 10-year returns on investment than most selective private universities because of the lower cost of attendance.
According to a San Francisco Chronicle analysis of the data, “[t]he median 10-year return of attending the University of California or the California State University is estimated to be about twice as much or more as the typical private California college."
The analysis placed 10 CSUs among the top 20 California colleges offering the best return on investment:
- Cal Maritime (#5)
- Cal Poly San Luis Obispo (#7)
- San José State (#12)
- Cal State LA (#13)
- Stanislaus State (#14)
- Cal Poly Pomona (#15)
- Cal State East Bay (#16)
- Cal State Fullerton (#17)
- CSU Dominguez Hills (#18)
- Fresno State (#20)
At about $6,000 per academic year, CSU tuition is among the lowest in the country. Nearly 80% of undergraduate students receive some form of financial aid, and more than half of them graduate with zero student loan debt.
Read how the CSU leads national rankings for advancing social mobility and affordability.