Salary impact versus similar colleges (33%): This measures the extent to which a college boosts its graduates’ salaries beyond what they would be expected to earn regardless of which college they attended. We used statistical modeling to estimate what we would expect the median earnings of a college’s graduates to be on the basis of their demographic profile, taking into account the factors that best predict salary performance. We then scored the college on its performance against that estimate. These scores were then combined with scores for raw graduate salaries to factor in absolute performance alongside performance relative to our estimates. Our analysis for this metric used research on this topic by the Brookings Institution policy-research think tank as a guide.
Years to pay off net price (17%): This measure combines two figures—the average net price of attending the college, and the value added to graduates’ median salary attributable to attending the college. The value added to graduates’ median salary by a college was estimated on the basis of the difference between the median earnings of the school’s graduates and the median earnings of high-school graduates in the state where the college is located. We then took the average annual net price of attending the college—including costs like tuition and fees, room and board, and books and supplies, taking into account any grants and scholarships, for students who received federal financial aid—and multiplied it by four to reflect an estimated cost of a four-year program. We then divided this overall net-price figure by the value added to a graduate’s salary, to provide an estimate of how quickly an education at the college pays for itself through the salary boost it provides. Our analysis for this metric used research on this topic by the Third Way policy-research think tank as a guide.
Graduation rate versus similar colleges (20%): This is a measure of a college’s performance in ensuring that its students graduate, beyond what would have been expected of the students regardless of which college they attended. We used statistical modeling to estimate what we would expect a college’s graduation rate to be on the basis of the demographic profile of its students, taking into account the factors that best predict graduation rates. We then scored the college on its performance against that estimate. These scores were then combined with scores for raw graduation rates to factor in absolute performance alongside performance relative to our estimates.
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