The $2 Million ROI of a Michigan Public University Degree
The $2 Million ROI of a Michigan Public University Degree
For years, higher education advocates have touted that workers with a college degree earn an average of $1 million more over their careers compared to those whose formal education ended upon graduation from high school.
That earnings marker is vastly outdated, according to a new Return on Investment (ROI) tool that comes courtesy of the Georgetown Center for Education and the Workforce. The tool contains more than 42,000 calculations for some 4,600 American colleges and universities. The Center’s approach to calculating the ROI can be found here.
The takeaway? The average ROI of a Michigan public university undergraduate degree now tops $2 million. Even more impressively, that figure accounts for the actual costs associated with attending a university.
The average earnings ROI of Michigan public university bachelor’s degree graduates start out modestly but grow considerably over time. And the average ROI outpaces those of public universities nationally.
Graduates’ Average Cumulative Earnings Minus Total Out-of-Pocket Costs Based on Average Net Price of Attending College: Michigan and U.S. Public Universities
| Michigan Public Universities | U.S. Public Universities | |
| 10 Years | $188,400 | $174,000 |
| 20 Years | $756,600 | $714,000 |
| 30 Years | $1,386,000 | $1,250,000 |
| 40 Years | $1,912,667 | $1,790,000 |
The Center’s analysis is based on 2021-2022 U.S. Department of Education data. When factoring in increases in Michigan per capita income through 2024 (an impressive 8.8%), the average ROI for a Michigan public university graduate over their career is forecast at $2,080,981.
Increased income is just one among many benefits of earning a college degree, including greater job security, career and social mobility, healthier lifestyles, and higher levels of civic involvement. And so, too, are the benefits to the state of Michigan: higher tax payments to support the public good, greater consumer spending that boosts economic growth, and decreased reliance on public assistance and social insurance programs. This is what undergirds Michigan’s ambitious Sixty by 30 educational attainment goal. We’ve made progress toward the goal, but more needs to be done.
Maintaining the affordability of a Michigan public university education is paramount to generating the talent needed to retain and attract new economy employers and all the benefits to individuals and society that come with earning a bachelor’s degree and beyond.
As state lawmakers coalesce around a FY 2026 state budget, it must be underscored that Michigan ranks 42nd in state per capita funding support for higher education. Boosting funding for our state’s public universities is critical to growing a talent pipeline for a labor market beckoning for more bachelor’s degree qualified workers and to build upon the $2 million ROI these individuals achieve from their Michigan public university degrees. The vitality of Michigan communities, families, and our state’s overall economic prosperity depends on it.
Daniel Hurley is the CEO of the Michigan Association of State Universities.