Rice ranked as Texas’ best return on investment

Rice University offers the best return on investment (ROI) in education among Texas colleges and universities, according to 2012 rankings by the compensation data firm PayScale that were published this month by Bloomberg Businessweek.

Rice ranks No. 29 nationally in the rankings, which are based on what graduates earn in their careers compared to the cost of their education.

Using self-reported salary data from about 1,000 alumni who graduated with a bachelor’s degree from each of the more than 850 schools surveyed, PayScale calculated each school’s 30-year net ROI. This figure represents the typical earnings of a graduate in 2012 dollars after deducting the net cost of the degree, including tuition and fees, room and board and books, minus the average grant aid award, and adjusting for the school’s six-year graduation rate.

Based on a total net cost of a degree at $78,080, Rice’s 30-year ROI was calculated at $835,800. That amount increased to $898,700 when the 30-year ROI excluded students who did not earn a degree within six years. The annualized ROI was calculated as 12.7 percent.

To view the rankings, visit http://www.businessweek.com/interactive_reports/colleges_return_on_investment.html.