Investment in College Delivers Questionable Financial Returns for Many, Especially for White Women and Hispanics

SAN DIEGO, March 12 /PRNewswire/ -- Michael Robertson, successful entrepreneur and founder of educational foundation the Robertson Education Empowerment Foundation (REEF), recently took an in-depth look at a report presented to Congress by the College Board, a business serving colleges and universities and the provider of the SAT test, and found that many college graduates will work 40 years to do little more than pay back the cost of attending college. REEF notes on its site -- http://www.robertsonfoundation.com -- alternative paths, such as community college, grants, and more, that can help young people create successful lives, without incurring mountainous debt.

When examined by race and gender the differences were even more dramatic, with the average white woman attending private college not even earning back enough to compensate for financing college attendance, even after four decades in the workplace. These results contrast sharply with the initial report which stated, "[Higher education] yields a high rate of return for students from all racial/ethnic groups, for men and for women" and call into question the call for even greater college attendance numbers.

REEF's research found numerous major inaccuracies in the College Board's assumptions which dramatically skewed the initial findings. The initial report miscalculated time spent completing an undergraduate degree, complete college costs, unemployment rates, college loan interest rates and more. REEF used the same worksheets and formulas used in the College Board report, but the inclusion of more accurate numbers, as well as a breakdown by race and gender, dramatically changed the results. Indeed, REEF's findings indicate that students attending college beginning in 2007-2008 can expect a return on investment (ROI) of 0 - 4.73%, a low yield by any financial metric.

"The data says that for an increasingly large number of students, especially white women and Hispanics, college can be a poor economic decision that does not improve their lives, but rather leaves them paying back debt for an extended period of time," commented Robertson. "The College Board, which makes money from students attending college, is not an objective source. Their conclusion that everyone should attend college, regardless of sex or race, misrepresents the data when accurate numbers are used that represent a typical college experience for a young person today. Students, or their parents, who will accrue debt to finance college should take a dispassionate look at the gender and race numbers and consider lower cost education and life improvement paths."

A detailed explanation of the inaccuracies in the College Board report and a deeper analysis is available at: http://www.robertsonfoundation.com. Also published for public review are all spreadsheets, complete with calculations and links to sources of assumptions.

ABOUT REEF:

The Robertson Education Empowerment Foundation is a non-profit organization that is dedicated to promoting research and analysis for higher education. The foundation is a resource for higher education students to examine costs and research related to the attendance of college. REEF is dedicated to promoting new and innovative programs of investment in education. For more information about REEF, visit http://www.robertsonfoundation.com.