What is the ROI of a College Degree?

What is the ROI of a College Degree?

During the past weeks I saw more and more interviews, blog posts and discussions on what the return of investment (ROI) of a college degree is these days. It is no secret that the fees are increasing every year and many students have to take huge loans which they then need to pay back over an also increasing period of time as salaries are of course not sky rocketing at the same speed, if at all.


In August last year Darien Brown, Founder and CEO of YongoPal wrote an interesting guest post on my blog titled “The Educator’s Responsibility to Deliver Economic Value” from which I would like to quote two paragraphs on this subject:

As service providers, it should be our responsibility to consider the larger picture.  We should be able to step back from our niches and think critically about how what we are providing contributes to our students’ professional development. We should be responsible for making sure that what we sell generates economic rewards in excess of what our customers pay.

Selling formal education on the myth that it should be about personal enrichment, in my mind, borders on the unethical. That we are personally and intangibly enriched is merely one of education’s convenient byproducts.

Hence, according to Brown the ROI of a college degree, or basically any kind of certification, needed to be an economic reward, e.g. chances to get a well paid job, a promotion etc.

In an Triangulation interview hosted by Leo Laporte which I saw yesterday I learned that Michael Robertson, the founder of mp3.com has a foundation that calculated the ROI of a college degree. The average number is 4% which means that if you took the $250k for a master degree and put it on the bank you might end up with a far better ROI over the years.

So, what are the alternatives? Today there are only a handful of companies that hire people based on their skills and those companies are normally based in Silicon Valley and the Bay Area. And there is still the problem of how to actually proof what one knows when it is not printed on a sheet of paper with the logo of a college or university.

Jon Bischke, Founder of eduFire and now entrepreneur in resident at Battery Ventures sees one answer in his theory about the Reputation Graph. He points out that every day important decisions are actually taken on the basis of what we know about the other person involved. College applications are based on test scores, job positions are given based on degrees etc whereas none of these decisions takes into consideration what others might know about the person.

What if the knowledge that others have about the person who applies for a place in college or a job would be available on the Internet? Quoting Jon Bischke on one of his posts about the Reputation Graph:

So here’s why I think this is important. Just as Google and others were able to make our ability to access information dramatically easier and open all sorts of opportunities for people, I feel like the companies that build the reputation graph will have an amazing opportunity to make the process of making decisions about people (again, something each of us do every single day) incredibly more efficient. Better fits for jobs, schools…heck, even who you date or pal around with on the weekends could make peoples’ lives dramatically better.

As you know, I strongly believe in the concept of a Knowledge Graph that tracks all the information about what we learn every day from formal or informal sources.

The combination of Knowledge and Reputation Graph has the potential to then massively disrupt the inflation of college tuition costs. If more and more companies took decisions based on tracked knowledge and reputation, colleges and universities needed to come up with new, innovative ways to make the investment worth the money or simply go back to old pricing models.

CT scans of shark intestines find Nikola Tesla’s one-way valve

Evolution proves to be just about as ingenious as Nikola Tesla

Credit: Gerald Schömbs / Unsplash
Surprising Science
  • For the first time, scientists developed 3D scans of shark intestines to learn how they digest what they eat.
  • The scans reveal an intestinal structure that looks awfully familiar — it looks like a Tesla valve.
  • The structure may allow sharks to better survive long breaks between feasts.
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Are we really addicted to technology?

Fear that new technologies are addictive isn't a modern phenomenon.

Credit: Rodion Kutsaev via Unsplash
Technology & Innovation

This article was originally published on our sister site, Freethink, which has partnered with the Build for Tomorrow podcast to go inside new episodes each month. Subscribe here to learn more about the crazy, curious things from history that shaped us, and how we can shape the future.

In many ways, technology has made our lives better. Through smartphones, apps, and social media platforms we can now work more efficiently and connect in ways that would have been unimaginable just decades ago.

But as we've grown to rely on technology for a lot of our professional and personal needs, most of us are asking tough questions about the role technology plays in our own lives. Are we becoming too dependent on technology to the point that it's actually harming us?

In the latest episode of Build for Tomorrow, host and Entrepreneur Editor-in-Chief Jason Feifer takes on the thorny question: is technology addictive?

Popularizing medical language

What makes something addictive rather than just engaging? It's a meaningful distinction because if technology is addictive, the next question could be: are the creators of popular digital technologies, like smartphones and social media apps, intentionally creating things that are addictive? If so, should they be held responsible?

To answer those questions, we've first got to agree on a definition of "addiction." As it turns out, that's not quite as easy as it sounds.

If we don't have a good definition of what we're talking about, then we can't properly help people.

LIAM SATCHELL UNIVERSITY OF WINCHESTER

"Over the past few decades, a lot of effort has gone into destigmatizing conversations about mental health, which of course is a very good thing," Feifer explains. It also means that medical language has entered into our vernacular —we're now more comfortable using clinical words outside of a specific diagnosis.

"We've all got that one friend who says, 'Oh, I'm a little bit OCD' or that friend who says, 'Oh, this is my big PTSD moment,'" Liam Satchell, a lecturer in psychology at the University of Winchester and guest on the podcast, says. He's concerned about how the word "addiction" gets tossed around by people with no background in mental health. An increased concern surrounding "tech addiction" isn't actually being driven by concern among psychiatric professionals, he says.

"These sorts of concerns about things like internet use or social media use haven't come from the psychiatric community as much," Satchell says. "They've come from people who are interested in technology first."

The casual use of medical language can lead to confusion about what is actually a mental health concern. We need a reliable standard for recognizing, discussing, and ultimately treating psychological conditions.

"If we don't have a good definition of what we're talking about, then we can't properly help people," Satchell says. That's why, according to Satchell, the psychiatric definition of addiction being based around experiencing distress or significant family, social, or occupational disruption needs to be included in any definition of addiction we may use.

Too much reading causes... heat rashes?

But as Feifer points out in his podcast, both popularizing medical language and the fear that new technologies are addictive aren't totally modern phenomena.

Take, for instance, the concept of "reading mania."

In the 18th Century, an author named J. G. Heinzmann claimed that people who read too many novels could experience something called "reading mania." This condition, Heinzmann explained, could cause many symptoms, including: "weakening of the eyes, heat rashes, gout, arthritis, hemorrhoids, asthma, apoplexy, pulmonary disease, indigestion, blocking of the bowels, nervous disorder, migraines, epilepsy, hypochondria, and melancholy."

"That is all very specific! But really, even the term 'reading mania' is medical," Feifer says.

"Manic episodes are not a joke, folks. But this didn't stop people a century later from applying the same term to wristwatches."

Indeed, an 1889 piece in the Newcastle Weekly Courant declared: "The watch mania, as it is called, is certainly excessive; indeed it becomes rabid."

Similar concerns have echoed throughout history about the radio, telephone, TV, and video games.

"It may sound comical in our modern context, but back then, when those new technologies were the latest distraction, they were probably really engaging. People spent too much time doing them," Feifer says. "And what can we say about that now, having seen it play out over and over and over again? We can say it's common. It's a common behavior. Doesn't mean it's the healthiest one. It's just not a medical problem."

Few today would argue that novels are in-and-of-themselves addictive — regardless of how voraciously you may have consumed your last favorite novel. So, what happened? Were these things ever addictive — and if not, what was happening in these moments of concern?

People are complicated, our relationship with new technology is complicated, and addiction is complicated — and our efforts to simplify very complex things, and make generalizations across broad portions of the population, can lead to real harm.

JASON FEIFER HOST OF BUILD FOR TOMORROW

There's a risk of pathologizing normal behavior, says Joel Billieux, professor of clinical psychology and psychological assessment at the University of Lausanne in Switzerland, and guest on the podcast. He's on a mission to understand how we can suss out what is truly addictive behavior versus what is normal behavior that we're calling addictive.

For Billieux and other professionals, this isn't just a rhetorical game. He uses the example of gaming addiction, which has come under increased scrutiny over the past half-decade. The language used around the subject of gaming addiction will determine how behaviors of potential patients are analyzed — and ultimately what treatment is recommended.

"For a lot of people you can realize that the gaming is actually a coping (mechanism for) social anxiety or trauma or depression," says Billieux.

"Those cases, of course, you will not necessarily target gaming per se. You will target what caused depression. And then as a result, If you succeed, gaming will diminish."

In some instances, a person might legitimately be addicted to gaming or technology, and require the corresponding treatment — but that treatment might be the wrong answer for another person.

"None of this is to discount that for some people, technology is a factor in a mental health problem," says Feifer.

"I am also not discounting that individual people can use technology such as smartphones or social media to a degree where it has a genuine negative impact on their lives. But the point here to understand is that people are complicated, our relationship with new technology is complicated, and addiction is complicated — and our efforts to simplify very complex things, and make generalizations across broad portions of the population, can lead to real harm."

Behavioral addiction is a notoriously complex thing for professionals to diagnose — even more so since the latest edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM-5), the book professionals use to classify mental disorders, introduced a new idea about addiction in 2013.

"The DSM-5 grouped substance addiction with gambling addiction — this is the first time that substance addiction was directly categorized with any kind of behavioral addiction," Feifer says.

"And then, the DSM-5 went a tiny bit further — and proposed that other potentially addictive behaviors require further study."

This might not sound like that big of a deal to laypeople, but its effect was massive in medicine.

"Researchers started launching studies — not to see if a behavior like social media use can be addictive, but rather, to start with the assumption that social media use is addictive, and then to see how many people have the addiction," says Feifer.

Learned helplessness

The assumption that a lot of us are addicted to technology may itself be harming us by undermining our autonomy and belief that we have agency to create change in our own lives. That's what Nir Eyal, author of the books Hooked and Indistractable, calls 'learned helplessness.'

"The price of living in a world with so many good things in it is that sometimes we have to learn these new skills, these new behaviors to moderate our use," Eyal says. "One surefire way to not do anything is to believe you are powerless. That's what learned helplessness is all about."

So if it's not an addiction that most of us are experiencing when we check our phones 90 times a day or are wondering about what our followers are saying on Twitter — then what is it?

"A choice, a willful choice, and perhaps some people would not agree or would criticize your choices. But I think we cannot consider that as something that is pathological in the clinical sense," says Billieux.

Of course, for some people technology can be addictive.

"If something is genuinely interfering with your social or occupational life, and you have no ability to control it, then please seek help," says Feifer.

But for the vast majority of people, thinking about our use of technology as a choice — albeit not always a healthy one — can be the first step to overcoming unwanted habits.

For more, be sure to check out the Build for Tomorrow episode here.

Why the U.S. and Belgium are culture buddies

The Inglehart-Welzel World Cultural map replaces geographic accuracy with closeness in terms of values.

According to the latest version of the Inglehart-Welzel World Cultural Map, Belgium and the United States are now each other's closest neighbors in terms of cultural values.

Credit: World Values Survey, public domain.
Strange Maps
  • This map replaces geography with another type of closeness: cultural values.
  • Although the groups it depicts have familiar names, their shapes are not.
  • The map makes for strange bedfellows: Brazil next to South Africa and Belgium neighboring the U.S.
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