Methodology & Data Sources

Transparent insights into how we collect data, calculate ROI, and estimate financial outcomes for students.

Primary Data Sources

U.S. Department of Education College Scorecard

The core dataset for institution-level metrics including average annual costs, graduation rates, student diversity, and program-level debt. We also utilize their "Field of Study" data to map specific academic programs to median earnings.

Source: October 2025 College Scorecard Institution and Field of Study Data

U.S. Census Bureau (PUMS)

Public Use Microdata Areas (PUMS) from the American Community Survey (ACS) provide granular earnings data by college major. We specifically analyze this data to determine earnings percentiles (25th, 50th, 75th) at different career stages (Entry-level, Prime-age, Experienced).

Source: American Community Survey Public Use Microdata

Bureau of Labor Statistics (BLS)

We integrate BLS Occupational Outlook data to provide forward-looking metrics on job growth rates, annual openings, and national median salaries for professions mapped to specific majors.

Source: BLS Occupational Outlook Handbook

Federal Reserve Bank of New York

Labor market statistics for recent college graduates, including underemployment rates and median wages for early-career vs. mid-career graduates.

Source: The Labor Market for Recent College Graduates

Calculation Methodology

Return on Investment (ROI)

Our primary ROI metric is the difference between the NPV Lifetime Earnings after Costs and Taxes of the college graduate and a high school graduate.

ROI % = (Lifetime Value Added / Total Investment Cost) * 100

Key Assumptions

Discount Rate
7.8%
Adjusts future earnings to present-day value.
Wage Growth
2.0% / year
Estimated annual real salary growth.
Cost Inflation
5.6% / year
Annual increase in tuition/attendance costs.
Career Window
Age 18–65
Standard working lifetime simulation.

Taxes & Deductions

We simulate after-tax income to provide a realistic "Net Income" view. Our model applies:

Federal Income Tax: 2025 IRS Single Filer Tax Brackets (Rev. Proc. 24-40).
FICA Taxes: 6.2% Social Security (up to cap) + 1.45% Medicare (2.35% over $200k).
Standard Deduction: $15,000 baseline deduction applied before federal tax calculation.

Data Timing

Last Data Ingestion

January 2026

Earnings Reference Year

2023-2024 Academic Year

Note: Economic conditions change rapidly. While we strive for accuracy, these projections are estimates based on historical trends and should not be considered guaranteed financial advice.

Definitions

Break-even Age: The age at which the cumulative net earnings of a college graduate surpass those of a high school graduate.
Gov. Pell Grant ROI: Measures the government's return on Pell Grants via increased tax revenue. Calculated as the portion of incremental lifetime taxes (discounted at 2%) attributed to the Pell Grant investment.
Lifetime Value Added: The difference between the NPV Lifetime Earnings after Costs and Taxes of the college graduate and a high school graduate.
Net Present Value (NPV): The value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.
Social Impact ROI: A measure of the societal return on a philanthropic investment (donation), comparing the graduate's increased lifetime earnings to the cost of the donation.