ROI

Weekly Update: May 1

It’s National Decision Day!

May 1 used to mark the end of the college admissions cycle in a given year, but not this year — everything is just completely up in the air because of all of the FAFSA issues.

And the most interesting part is the widespread nature of the impact: most of our clients don’t apply for need-based financial aid, so you’d think it wouldn’t matter for them, right? Wrong. The drawn-out timeline and increased reliance on waitlists is impacting everyone.

Not to mention the fact that colleges and universities across the country are experiencing absolute chaos right now in terms of student protests (more on that below). There’s only so much tear gas and riot gear that high school seniors can see on tv before they begin to reconsider the type of school community with which they’d like to affiliate. And that goes both ways - the protests are very appealing to some and very unappealing to others!

BIGGEST COLLEGE-RELATED NEWS OF THE WEEK

COLUMBIA CRACKS DOWN AFTER BUILDING TAKEOVER

The situation at Columbia escalated significantly over the last week as professional protest consultants worked to exacerbate (and, it is suspected, to fund) the encampment of student protesters. The group then ultimately occupied, vandalized, and blockaded a campus building, Hamilton Hall.

Mayor Eric Adams issued a “shelter in place” order on campus and brought in over 100 NYPD police officers dressed in riot gear, who arrested over 230 students at Columbia last night. These students now face expulsion from the university. He explained: “This is a global problem, that [the] young are being influenced by those who are professionals and radicalizing our children. And I'm not going to allow that to happen.”

At this point, the campus is closed to everyone except for essential staff and students who live in residence halls, with only one campus access point.

HUNDREDS OF ADDITIONAL PROTESTS CONTINUE AROUND THE COUNTRY

While we are hopeful that the situation at Columbia will begin to improve over the next few days, similar demonstrations continue to rage on at many other campuses around the country. From state troopers in riot gear at the University of Texas at Austin to UCLA to UNC and more, nearly 400 demonstrations have taken place and continue to occur at schools all around the country. These have resulted in consequences ranging from suspensions, expulsions, cancelled classes and disrupted graduation ceremonies — a particularly unfortunate situation for a cohort of students that missed their high school graduation ceremonies during the Covid-19 outbreak in the spring of 2020.

STILL NEED A HOME FOR NEXT YEAR? YOU’RE IN LUCK

Whether you’re dealing with waitlist uncertainty, financial aid confusion, or protest fear, more students than ever have begun to reconsider their college choices for the upcoming year. We definitely don’t recommend making hasty decisions about this kind of thing, but there are a few circumstances in which a pivot may make sense. Fortunately, the National Association for College Admission Counseling posts a list of colleges with spaces remaining this fall. The list has over 200 options at the moment, although it is updated daily. Check it out - there are some good choices here, including Colorado State, Ithaca, Rollins, St. Joseph’s and more!

BEST ARTICLES OF THE WEEK

Shout out to my mom for sending me this article, which was a great one! Noting that "something feels distinctly off on Ivy League campuses” after years of increasing student entitlement that culminated in the recent protests, Forbes announced a list of twenty “New Ivies,” universities “producing the hard-working high achievers that employers crave.”

But students and parents shouldn’t get too excited — the acceptance rates at the private schools on the list are still extremely low, and the public school acceptance rates incorporate individual state legislation that makes the shared statistics largely non-representative for most applicants.

On the private side, they seem to have forgotten to include a certain school in St. Louis, but I’ll forgive that: the list includes many great options, ranging from Vanderbilt and Emory to Notre Dame, Georgetown, Boston College and more. I was also somewhat surprised that Duke and NYU were not on the list (probably too many protesters). The public institutions include all the usual suspects, including Michigan, UNC, Florida, Wisconsin, and of course our DMV favorites UVA and UMD. The only one that surprised me a little bit was SUNY Binghamton, a school to which we rarely have any students apply. I would have expected to see a mention of Indiana or UGA over Binghamton.

Speaking of public schools - Nate Silver is no exception to everyone singing their praises this year. In a recent blog post, he too reflected on the idea that state schools are often a better choice for most students than top-tier Ivy League programs (especially those going to “find themselves”).

One item that I wanted to clarify: he gave a few exceptions of students who might benefit from going to top-tier Ivy League programs, and one of those had to do with students planning to study law: “I’d … tell them to go with the elite private college,” he wrote, “If (i) they had a high degree of confidence in what they wanted to do with their degree and (ii) it was in a field like law that regards the credential as particularly valuable.”

He’s referring to law school here, not undergrad — students planning to attend law school later are actually one of the prime examples of those who do not need to pick an undergraduate school based on name, but their law school name is very important.

And lastly — I have tried to stop posting the generic articles that discuss how crazy this year’s college admissions process was, because we have covered all of the reasons for the craziness quite a few times already and I know that all of you get it by now. This morning, however, I read a great take in the New York Times and just couldn’t help myself from sharing it, so here we go: This Is Peak College Admissions Insanity.

I really agree with the idea that institutional certainty and applicant certainty have a negative correlation, with the events of the last several years increasing the potential to manipulate institutional certainty like never before. Unfortunately, this has left applicant certainty at an all time low.

Additionally, I think it’s eye-opening to recognize that even with advantaged “applicants … whose parents had taken the wise precaution of being rich,” their wealth wasn’t enough to get them where they wanted to be! Yes, the Visi student they profiled was ultimately admitted to Dartmouth, her father’s alma mater, which is amazing. She had some other great options as well. Still, look where she wasn’t admitted - even as a full-pay student with “stellar grades” at one of the top high schools in the D.C. area and a perfect ACT score. And we can’t even chalk this up to demonstrated interest, because she applied ED to Duke. Yet it wasn’t enough!

The uncertainty is out. of. control., and the truth is that we just don’t know where a student will get in anymore. We typically know where they won’t get in, but when it comes to qualified applicants, we have no clue. Could we have predicted that this girl would not have gotten into Duke ED but that she got into Johns Hopkins RD? No way. All we can do is make sure they have an ironclad strategy and do every single little thing right, and then we just have to let the chips fall where they may. But an important part of that strategy is making sure that students’ lists are extensive and balanced enough to have choices, no matter what happens.

OFFICE HAPPENINGS

I posted on social media this morning about a new interview trend that’s giving me a lot of pause. A new question making the rounds asks students about their go-to Starbucks order, with the idea that (a) they would not have prepared for this question in advance, and (b) an excessively-complicated order is likely to reflect a high-maintenance, entitled personality.

As a loyal Starbucks consumer, you can find me almost every morning dropping by one of the Vienna/Tysons locations: Spring Hill, Pike 7, or Maple Ave. So I have really thought about this quite a bit since I learned about the trend — probably too much for my own good — and I am just not down with the idea that a Starbucks order can always be an accurate measure of personality.

First, like I mentioned, I just don’t think there’s any truth to it, at least anecdotally. Some of the most high-maintenance people I know have very simple Starbucks orders. And some of the most easygoing people I know have rather complicated orders.

But beyond that, I think that one of the reasons I’ve continued to feel bothered by this trend is that it’s just another reminder that nothing is sacred anymore! It’s frustrating that today’s high school and college students have to come up with a strategy for their COFFEE ORDER so as not to offend or rub someone the wrong way. As if ordering an $8 latte every morning isn’t bothersome enough to lots of people in its own right.

And the choices feel pretty lose-lose: if you order oat milk, you’re suddenly identifying as a liberal environmentalist (I just like the taste..). If you prefer a skinny vanilla latte, you might be accidentally fat shaming someone. If you say you just like plain coffee, they know you’re lying. Ultimately, I decided the safest approach is to respond that your order is an iced coffee with sugar or stevia. It’s plain, but not too plain. Relatively inoffensive, as far as these things go. NO MENTION OF OAT MILK!

P.S. When Starbucks got rid of sugar-free hazelnut in 2017 (such a sad time that was) I got sick of having sugar-free vanilla all the time. So I began to mix various seasonal sauces and syrups with sugar-free-vanilla — like two pumps of each — to incorporate some variation while cutting down on the calories. Only in the fall and winter, because I don’t love the spring/summer seasonal flavors. You can call me high maintenance, but I’d like to think it makes me an out-of-the-box problem-solver :)

Weekly Update: April 9

For those of you in the DC area, I hope you had a chance to see the solar eclipse yesterday! (Or maybe felt the earthquake on Friday!?) 

BIGGEST COLLEGE-RELATED NEWS OF THE WEEK

MARCH MADNESS COMES TO AN END

On Sunday, it seemed like the entire country (with the possible exception of the state of South Carolina 🙂) was cheering on Caitlin Clark and University of Iowa. Unfortunately, it was not to be, and South Carolina finished their undefeated season by winning the NCAA women’s championship game 87-75. And last night, UConn won the men’s championship game (for the second year in a row!) by beating Purdue 75-60.

NAIA BANS TRANSGENDER WOMEN FROM WOMEN’S SPORTS

On Monday, the National Association of Intercollegiate Athletics voted unanimously to ban transgender women from women’s sports. “Only students whose biological sex is female” will be allowed to participate. If you haven’t heard of the NAIA, you aren’t alone: the organization is significantly smaller than the NCAA and includes schools that aren’t really on most of our students’ radar. However, this ruling may still be significant for the greater population, as some believe that it could serve as a precedent of sorts for the NCAA.

AT $95,000 PER YEAR, IS COLLEGE A GOOD INVESTMENT?

The annual cost of tuition, board, meals and other expenses at a number of private colleges has exceeded $90,000 this year, which calculates to over $1 million to send three children to college! But don’t let these numbers discourage you: many colleges with large endowments offer generous financial assistance to make attendance affordable, with some students paying just 10% of the advertised rate. Financial aid experts advise making decisions based on the actual cost that you have to pay (after financial aid is factored in), and not the perceived cost.  

Other colleges with price tags now exceeding $90,000 include USC at $95,000; Harvey Mudd at $93,000; UPenn at $92,000; Brown at $92,000; Dartmouth at $91,000; and BU at $90,000. Is college worth the investment? In general, we believe the answer is yes, with the caveat that it is important to borrow in moderation (can’t emphasize this enough!), pay close attention to the ROI of individual majors, and complete degree programs in their entirety.

NEW SURVEYS SHOWS JEWISH COLLEGE CHOICES AFFECTED BY OCT. 7

A recent survey this March by Hillel International, involving over 400 Jewish parents of high school juniors and seniors, showed that 96% are “concerned about the increase in antisemitic incidents on college campuses since October 7.” 19% even said they are questioning whether or not to send their children to college at all. 87% said that October 7 had an “impact” on how they chose a college for their child, and 64% said they are avoiding certain schools altogether because of a perceived rise in antisemitism on that campus.  

Hillel International president and CEO Adam Lehman stated that rather than avoiding certain colleges and “self-ghettoizing,” the Jewish community should focus on fixing the campus climate at schools. Julia Jassey, the CEO of Jewish on Campus, stated: “The last thing that I would ever tell a parent or student is not to go to a certain school because it is antisemitic. All that will do is self-select ourselves out of spaces where we want to be … It’s really more important that when students go to school, they’re educated about what antisemitism is, how to combat it, and what to do when they experience it.”

VANDERBILT IN EARLY DISCUSSIONS TO OPEN CAMPUS IN WEST PALM BEACH

Vanderbilt University is considering opening a second campus in downtown West Palm Beach, Florida, that would enroll around 1,000 students and feature a business school and a college of computer science. Vanderbilt Chancellor Daniel Diermeier has high hopes for this dream campus, and sees an opportunity to capitalize on Palm Beach County’s growing reputation as “Wall Street South” to provide students with jobs in finance. He said that a West Palm Beach campus could “turbocharge” the creation of new businesses established by graduates, creating an innovation industry and transforming the city into a major destination. 

Diermeier envisions that Vanderbilt’s impact on West Palm Beach could be similar to Stanford’s impact on Silicon Valley, resulting in an explosion of business and innovative technology companies. The school is in the preliminary stages of meeting with county commissioners and asking local businesses to co-invest. A recent event attended by Gov. Ron DeSantis raised $100 million for the venture.

BEST ARTICLES OF THE WEEK

Is college football over as we know it?  An article in The Athletic last week said that a group dubbed the “Super League” may be shaking things up in the near future. The group, officially called “College Sports Tomorrow” (CST), is trying to implement a new system that would replace the NCAA and the College Football Playoff, as well as provide a solution for lawsuits involving NIL and transfer portal issues.  The CST structure would eliminate the conference structure and create one entity. 

This centralized college league would negotiate not only for TV broadcasting deals, but also negotiate with any prospective union that would represent players in lawsuits. Colleges are particularly concerned with the House v. NCAA class action lawsuit, which could have the NCAA and power conferences on the hook for billions.  

Some criticize the notion, saying that CST is trying to “buy college football.” Leagues have been hesitant, and some have cancelled meetings with CST so as not to upset their current multi-million-dollar broadcast deals with ESPN and Fox. CST leaders, however, assert that time is of the essence; their goal is to get ahead of foreseeable legal challenges and “lead from the front, not behind.” 

Speaking of college sports, how about North Carolina State!?  Although they lost to Purdue over the weekend, they made it to the Final Four, leaving fans “thunderstruck,” as the New York Times put it. Often referred to by neighboring basketball powerhouses Duke and UNC as the “little brother,” NC State emerged as the country’s Cinderella team, winning nine straight games, including a 26-14 victory over Duke. It was the first time the Wolfpack made it to the national semifinals since they won the national title in 1983. 

In the 1950’s, the team was considered the best in the ACC. Their men’s basketball team was the team that started the tradition of cutting down the net as a victory souvenir. However, a big setback occurred in 1989, when the NCAA placed the team on probation for two years and barred it from the 1990 tournament for violations that included misuse of complimentary tickets and sneakers provided to players. Despite their loss on Saturday, it was thrilling to see an underdog back in the limelight.  

I came across an intriguing article in Forbes that cautioned against college education becoming like a luxury brand – an expensive badge of status reserved for the privileged few. The author wrote that an undergraduate degree (especially one at a top university) provides professional opportunities and upward social mobility, and people are willing to spend a small fortune for it. Luxury products are expensive because they are assumed to be high quality, with intrinsic value, and also carry prestigious, identifiable imagery. These qualities are perceived to be transferred from the products to the person wearing it. In this sense, the author believes, a college education has become very much like a Gucci bag.  

Yet the demand for luxury is slowing, as evidenced by softening sales from brands like Gucci. The brand reported a 20% decline in the first quarter of 2024, due to its out-of-reach pricing and alternative options, which are becoming more culturally valuable. This is a warning bell for higher education: as college tuition rises, more alternatives to college are presenting themselves. 

Social media influencers provide a potentially lucrative career path without school debt, and the massive shortage of trade jobs has led to a premium in salaries for skilled labor (again, without the debt). Some experts think that innovations in technologies like blockchain authentications could gain status akin to a college degree when it comes to hiring. If luxury is any indication, higher ed needs to evolve!

OFFICE HAPPENINGS

Our juniors are continuing to finalize their lists during their second round of college counseling check-in meetings, which just started this week. In case you were wondering, we haven’t seen any particular increase in student interest in UConn or Iowa this year after March Madness (South Carolina and Purdue were already popular options!).

One of the challenges that a lot of our students face involves the difficulty of visiting colleges in person without missing school. It’s particularly tough at this time of year, now that spring break is over and the clock is ticking - college students typically finish up their classes in late April or the first week of May, and the whole vibe changes on campus after that point. Don’t forget that Saturdays are still an option, though! A prospective student will get a much better sense of a campus community on a Saturday during the spring than on a weekday during exam week or the summer.

Have a great rest of the week - we have some amazing weather ahead!

ROI: What are we really measuring?

I posted about a Georgetown study on Higher Education ROI on our Facebook page a few weeks back and promised to follow up with a blog post. I think there’s a lot of interesting information here, and while it may be surprising at first to hear about Maine Maritime Academy and the pharmacy schools, it brought up another point that I’ve thought a lot about lately: that it’s important to realize that when we consider these issues, we are looking at averages.

It’s absolutely correct that the average income of a pharmacist is higher than the average liberal arts graduate. There’s a whole sub-set of fields like this - engineering is another great example - where the starting salaries are high and remain consistent, without much risk of the student ending up unemployed or underemployed.

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However, averages don’t tell the whole story. How many engineers or pharmacists do you know in the top 1%? I almost feel badly writing this out because I do not think that high incomes should necessarily be everyone’s goal (I have a master’s degree in education for goodness’ sake!) but if we’re going to use salary information as a ranking metric, I think we need to differentiate between the chance of achieving financial stability and the chance of becoming a high-income earner.

I know that the definitions of these are probably different for everyone, but let’s say for our purposes, a financially stable professional might bring in about $100k in the DC area and a high-income earner might bring in about $300k+ in the DC area. Give or take.

How would these rankings look if instead of taking the average incomes of graduates - which clearly speak to stability - they took the percentage of alumni earning more than $300k? Oh, and if they performed cost-of-living adjustments (I can dream, right? All my readers know how passionately I feel about cost of living adjustments!). I think this would give us very different results. No way would the Maine Maritime Academy come out on top, in my opinion - or the pharmacy schools.

Yes, there’s no question that liberal arts degrees bear more risk as opposed to pre-professional degrees. No doubt about it. But I really do believe that by and large, they also offer the most reward. When I look at myself, an English major with a master’s degree in education, I know that on paper I should probably be making a tenth of what I actually earn. On the other hand, though, maybe it was my relatively low income potential that led me into entrepreneurship. If I had a solid six-figure engineering job at age 25, would I have taken the risk of losing that income? Again, just speaking for myself here, but I don’t think I would have.

I think that the Wealth-X list provides a good point of comparison that comes a little closer to the point I’m trying to make, although we have to keep in mind that people with a net worth exceeding $30m are not exactly the norm. But I do enjoy this statistic: “University of Chicago and University of Virginia share the distinction of having the most UHNW [ultra high net worth] alumni with self-made wealth.” YES! That is right about what I would have guessed.

Now, how about just regular high net worth alumni? Time for someone to perform that study!