Study: Georgia Tech, UGA offer best salary returns on tuition
Tech cheerleaders ride the Rambling Wreck onto Grant Field (Associated Press)
Georgia Tech offers “the best academic deal in America” when it comes to which colleges and universities help graduates reel in the biggest paychecks considering the tuition they had to fork over, according to to SmartMoney.
In fact, Georgia has two schools in the Top 5: The University of Georgia ranks No. 4, behind Tech, the University of Florida (2) and the University of Texas at Austin (3). (See complete table here – pdf). From SmartMoney:
Recent Georgia Tech grads earn $59,000, or a stellar 67% of what they paid in tuition. Grads in their 30s average $102,000 a year, more than three times their 1990s tuition tab.
President G.P. Peterson credits the focus of virtually all Tech students on science-oriented disciplines, including engineering and computer and software design, and Tech’s “fortunate position” of being able to get tuition subsidies from the state thanks to the HOPE scholarship. It also helps that the hottest careers are currently in the technology industry.
SmartMoney, with the help of Seattle-based compensation data company PayScale, relied on 35 million salary profiles to come up with median pay figures for two groups of alumni at each of the Top 50 most expensive schools on the list. One group was the Class of 2009 and the other was the Class of 1997, who were now getting mid-career salaries.
The median salary was divided by total tuition and fees for each of the four-year periods. The result was converted to a percentage figure, and the outcome was a measure of return on investment, or a “Payback Score”.
Tech’s Class of 2009, who paid $87,810 for four years of college, had a median salary of $59,000 today. The Class of 1997, who paid $30,249 for four years of college, had a median salary of $102,000 today.
Georgia’s Class of 2009, whose members paid $77,957 for four years of college, have a median salary of $41,100 today. The Class of 1997, whose members paid $27,865 for four years of college, have a median salary of $79,200.
The thousands more in tuition paid by private college school graduates also didn’t translate into a much higher salary return when compared with the pay public college graduates were seeing. The study found the average salary for the public college Class of 2009 was $47,790, compared with $46,024 for their private liberal arts counterparts. The salary was $87,257 for the public college Class of 1997, compared with $91,019 for their private school counterparts. From SmartMoney:
By their mid-30s, alumni of the 21 private liberal-arts schools we surveyed are pulling down only about 4% more than their public school peers, despite having spent almost twice as much on tuition (assuming they paid the sticker price).
What kind of return are you getting on your college investment as you glance at your paycheck?
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Visitor Agreement | Privacy Statement
© 2013 The Atlanta Journal-Constitution
164 comments Add your comment
Paul in NH
September 26th, 2012
3:32 pm
“The median salary was divided by total tuition and fees for each of the four-year periods. The result was converted to a percentage figure, and the outcome was a measure of return on investment, or a “Payback Score”.”
Another methodology would be the differential between median salary and total tuition rather than ratio. Someone who has a salary of $100k after spending $50k (diff = 50, ratio = 2) is in a much better situation than someone who has a salary of $50k after spending $20k (diff = 30, ratio = 2.5)
Jefe
September 26th, 2012
3:37 pm
One thing that this study doesn’t even mention is the fact that most college students are taking out loans to pay for their education, so the numbers above are not factoring in tens of thousands of $$ of interest in receiving this education. This would greatly change the ROI and would add significantly to the overall costs. On a related note, too many professionals are still dealing with these loans well into their 30s (and even 40s in some cases). I finally got mine paid off by 30 only because I got mad and decided I was tired of paying all that interest and essentially throwing my money away. Like a car payment, it’s “normal” for one to get a student loan, instead of saving up to pay for it or working part-time during your studies, and young professionals are already digging themselves into an uphill financial battle with these 5-6 figure loans while trying to buy their first home and save for retirement at the same time. A little more personal responsibility and living debt-free would go a long way….
Woodstock Joe
September 26th, 2012
3:46 pm
Both GT and UGA should be praised for these ranking. However, I believe the biggest credit goes to the Hope. Both schools have benefited dramatically as the quality of students have risen. Georgia has benefited by higher academic while GT has benefited for more well rounded students. As a GT grad in upper management, I work for someone who graduated from a small liberal arts school in LA. Our business was started by someone with only a high school diploma. I have both GT and UGA recent grads working on my team – all of them seem well prepared by their education background. While school pride is admirable, too much can lead to arrogance. Right after arrogance comes failure. Like most issues, I tend to believe the “haters” make up the VOCAL minority. Again, kudos to the both schools on preparing their students for the current business world.
JW
September 26th, 2012
3:48 pm
Holy smokes…the only thing of value I took from this was the staggering diff. in tuition and fees for the class of ‘97 and ‘12. Unreal
Michael
September 26th, 2012
3:50 pm
Listen up dipwads. This isn’t about UGA vs TECH but more about WHY THE HECK these schools cost so much more now vs 10 years ago ? The simple answer is lottery (public) money. This caused the administrators to go on a spending and salary binge that is still going on today. Look up an average UGA profs salary lately? $100K easy. I’m sorry but these people aren’t worth it. Have you seen how many construction projects occured in the last 15 years at either school ? New buildings everywhere offering every non-educational service under the sun. Both are fine institutions but hardly worth the tuition they charge now. Let me ask you, is your kid or younger cousin that went to UGA/TECH that much smarter than you ? Hell no. By the way, same goes for the rest of the SEC and ACC institutions. The average bill at any of these schools is between $60K – $80K for 4 years. C’MON MAN $80K for a BAMA degree !! Lets get real by lighting a fire under neath our elected officials to limit salary increases and general spending at our publicly funded schools.
MoFaux
September 26th, 2012
3:54 pm
It’s really sad to see so many people boasting of their huge salaries. Please pat yourself on the back and genuflect into the mirror. I went to GT and I do not earn $102+, and frankly don’t care. All that really matters is your happiness. Money does not equate to happiness. I could make more money if I really wanted to, but I like my career and the benefits are nice. All this back and forth between UGA and GT is so high school and I can’t believe grown adults insult each other based upon their school choice. Just kidding, I’m not that naive. This is an anonymous internet blog, so of course people feel like they can throw mindless insults around at will. Both schools are good choices, period!
Joseph
September 26th, 2012
4:05 pm
Tech’s COB is ridiculed on campus as the easy way to a degree… yet 95% of its graduates get a job within 3 months of graduation, and they have an average starting salary higher than UGA’s. No wonder the Tech B-school is higher ranked than UGA’s
sting_em
September 26th, 2012
4:31 pm
If any of my kids get into UGA, Tech, or any other state school on the HOPE, that’s my best return on investment.
Tea Party Patriot
September 26th, 2012
5:03 pm
Public schools are socialism. Get a job.
UGA, all the way
September 26th, 2012
8:08 pm
All the people I know from Tech are emotionally unstable.
UGA, all the way
September 26th, 2012
9:31 pm
Silence, silence. Guess all the Tech people aren’t smart enough to find this site anymore.
Jose
September 26th, 2012
9:44 pm
My deck is bigger than yours …
sal
September 27th, 2012
3:56 am
Even though I wanted to major in engineering, had no interest in living in downtown ATL since I’ve lived here all my life. It’s a 35+ hours of studying each week, and the only reason I’m keeping a 3.3 is the one on one, personal attention from most of my profs(Not TA’S or grad assts) at UGA. Most have been ready to offer as much help/guidance that I need. They won’t let me give up. I thought I wanted to go to a large engineering school up north, my parents couldn’t afford it, I didn’t want the loan burden – WOW! I’m getting my money’s worth at UGA. My sister got help from the TA’s never the profs at her expensive school. My friends in engineering at Tech say they’re not getting this kind of personal help from the profs. I’m just a soph, and I already have a list of profs who know me well, will write recs for me, etc. – It’s hard to put a price tag on that!
BYC
September 27th, 2012
9:12 am
On the football field, TO HELL WITH GEORGIA! But it looks like we should all be proud of our schools here. Not saying either school has it worse, but I wonder how this study deals with dropouts, super-seniors, and people who cant find jobs?