ERIC Number: ED245753
Record Type: RIE
Publication Date: 1983-Oct
Rates of Return on Investments in Education at Montgomery College: A Human Capital Study of All First-Time Students Enrolled during Fall 1980 and FY 1980 Graduates.
Montgomery Coll., Rockville, MD. Office of Institutional Research.
A human capital study was conducted at Montgomery College to assess the rate of return on educational expenditures by contrasting the future lifetime earnings of people with less education with that of people with greater educational attainment. The study assessed the costs of education (e.g., for tuition and fees, books and supplies, foregone earnings, and transportation) and the benefits of attending community college in terms of earning differentials. Two groups of students were examined: all students who enrolled at Montgomery College for the first time in fall 1980 and all students who graduated from the college during fiscal year 1980. Rates of return were calculated for both groups based on attendance and employment patterns. Study findings included the following: (1) the cost of education for a male attending school full-time and working part-time included an average of $3,640 in foregone earnings, $859 in tuition and fees, $286 in books and supplies, and $1,020 in transportation; (2) the average student could expect a 25% rate of return on his/her investment in education; (3) the average rate of return for graduates was 33.8%, with a high of 64.8% for males who were attending college part-time and working full-time and a low of 12.7% for females who were unemployed and attending college part-time; (3) the average return to society for the investment in education was 18% for currently enrolled students and 25% for college graduates. (HB)
Publication Type: Reports - Research; Numerical/Quantitative Data
Education Level: N/A
Authoring Institution: Montgomery Coll., Rockville, MD. Office of Institutional Research.