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Writer Examines Validity of PayScale’s College ROI Report

After the release of PayScale’s annual college return on investment (ROI) report, Forbes writer Susan Adams questioned the website’s methods of measuring a higher institution’s ROI. Despite PayScale stating its approach is transparent, Adams followed up with six schools ranked in the report’s bottom ten. Per Adams’ discovery, the colleges reported that PayScale’s efforts in collecting data were outdated and skewed. For instance, PayScale takes into consideration alumni who graduated in 1994 and beyond, uses the median salaries the graduates currently earn and calculates the numbers for the 20-year ROI in today’s dollars. Those figures are then projected for 20 years in the future, minus the time it takes to get a degree and lost wages from that time period. Further, PayScale does not consider the pay of alum that complete graduate or business school, or graduates that are self-employed. In response, the website argues it’s tough to know how a graduate degree has affected an alum’s earnings and entrepreneurs do not report their pay to PayScale.

For the full story, visit the Forbes website.

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