The Ten Highest Graduation Rates Among State Universities

May 23, 2010 by Thomas / 5 Comments

Readers of our blog know our emphasis on value. For that reason we have noted the importance of the payback ratio and the concept of the honors college.

Furthering our value concept, we have also posted our five reasons to consider your local state university. All told, it is our view that state universities consistently offer some of the best values going.

But such a position must go hand in hand with the most important statistic, college completion. While the public is often bombarded with America’s K-12 school dropout issue, the fact is that college dropout rates far exceed what transpires in the K-12 sector.

These poor results as well as lists of the best and worst college graduation rates recently hit the headlines with the release of the American Enterprise Institute for Public Policy Research’s release of Diplomas and Dropouts (PDF).The private, nonpartisan, not-for-profit institution dedicated to research and education on issues of government, politics, economics, and social has compiled the completion rates of all American colleges and universities.

For the record, the study utilizes the common six-year completion method, i.e. those who complete their degree within six years of entering school. While we would prefer to see summaries of those who complete their program within four years, the six-year figure is the going standard. Those reviewing the report will find the highest and lowest grad rates for students based on school selectivity but the report does not offer a complete breakout for state universities.

Given our ongoing support of state university systems, we took the time to review the AEI report for readers. Below you will find our list of the top ten state universities by graduation rate. All offer very strong numbers.

To be sure, not all of these schools have the same selectivity rating. And readers must understand that we cannot fully articulate the reasons why one school tops another. We do not know if it is because of stronger support for students, better instruction, or the proper level of entrance criteria. In fact we would guess it is most probably a combination of all of these elements and more.

The bottom line is not all schools are as successful as their counterparts. To get a full sense, we also offer a complete summary of all state institutions after our top ten. To give readers some other key data, our final list includes the percent graduation rate, in-state tuition and fee costs, total enrollment and the state graduation percentage (average of all colleges in that respective state).

The Top Ten State Universities by Graduation Rate

1. University of Virginia: 93%
2. University of California, Los Angeles: 90%
3. (tie) University of California, Berkeley: 88%
3. (tie) University of Michigan: 88%
5. (tie) Penn State 84%
5. (tie) University of California, San Diego: 84%
7. University of North Carolina 83%
8. University of Illinois: 82%
9. University of Florida: 81%
10. (tie) University of California, Irvine: 80%
10. (tie) University of Maryland: 80%

All State institutions:

Alabama
University of Alabama: 65% – $5,700 – 23,499
State Average: 42.9%

Alaska
University of Alaska: 20% – $4,477 – 10,990
State Average: 24.0%

Arizona
University of Arizona: 56% – $5,048 – 33,447
State Average: 52.0%

Arkansas
University of Arkansas: 58% – $6,038 – 15,913
State Average: 48.5%

California
University of California, Berkeley: 88% – $7,165 – 33,855
University of California, Davis: 79% – $8,124 – 28,868
University of California, Irvine: 80% – $7,556 – 25,839
University of California, Los Angeles: 90% – $7,165 – 36,733
University of California, San Diego: 84% – $7,456 – 26,466
State Average: 59.7%
* We have provided the data for the five largest branches.

Colorado
University of Colorado at Boulder: 67% – $6,636 – 28,171
State Average: 44.7%

Connecticut
University of Connecticut: 74% – $8,852 – 21,373
State Average: 60.8%

Delaware
University of Delaware: 78% – $8,150 – 18,716
State Average 47.0%

Florida
University of Florida: 81% – $3,257 – 47,600
State Average: 48.0%

Georgia
University of Georgia: 77% – $5,622 – 31,008
State Average: 44.7%

Hawaii
University of Hawaii: 55% – $5,390 – 16,505
State Average: 43.2%

Idaho
University of Idaho: 53% – $4,410 – 10,138
State Average: 41.7%

Illinois
University of Illinois: 82% – $11,130 – 40,248
State Average: 56.3%

Indiana
Indiana University: 72% – $7,837 – 36,151
State Average 53.1%

Iowa
University of Iowa: 66% – $6,293 – 25,685
State Average: 57.0%

Kansas
University of Kansas: 60% – $6,600 – 24,988
State Average: 46.7%

Kentucky
University of Kentucky: 62% – $7,096 – 23,600
State Average: 44.3%

Louisiana
Louisiana State University: 60% – $4,543 – 26,901
State Average: 40.1%

Maine
University of Maine: 59% – $8,330 – 10,130
State Average: 57.4%

Maryland
University of Maryland: 80% – $7,969 – 32,660
State Average: 59.4%

Massachusetts
University of Massachusetts: 66% – $9,921 – 22,655
State Average: 66.6%

Michigan
University of Michigan: 88% – $10,447 – 39,199
State Average: 52.1%

Minnesota
University of Minnesota: 63% – $9,598 – 41,927
State Average: 62.7%

Mississippi
Mississippi State University: 58% – $4,978 – 14,932
University of Mississippi: 53% – $4,932 – 13,977
State Average: 46.1%

Missouri
University of Missouri: 67% – $7,603 – 25,714
State Average: 51.8%

Montana
University of Montana: 42% – $5,141 – 12,129
State Average: 40.8%

Nebraska
University of Nebraska: 63% – $6,216 – 20,781
State Average: 52.5%

Nevada
University of Nevada: 41% – $4,201 – 21,938
State Average: 38.0%

New Hampshire
University of New Hampshire: 73% – $11,070 – 13,620
State Average: 57.3%

New Jersey
Rutgers University: 73% – $10,686 – 31,188
State Average: 57.3%

New Mexico
University of New Mexico: 44% – $4,571 – 20,870
State Average: 40.2%

New York
Stony Brook University: 59% – $5,760 – 20,573
SUNY at Albany: 64% – $6,018 – 15,590
SUNY at Binghamton: 77% – $6,012 – 13,376
SUNY at Buffalo: 61% – $6,218 – 25,252
State Average: 59.6%

North Carolina
University of North Carolina: 83% – $5,340 – 25,089
State Average 50.5%

North Dakota
University of North Dakota: 54% – $6,060 – 10,965
State Average: 44.0%

Ohio
Ohio State University: 71% – $8,676 – 48,583
State Average: 54.5%

Oklahoma
University of Oklahoma: 62% – $6,507 – 21,945
State Average: 38.8%

Oregon
University of Oregon: 65% – $6,174 – 18,902
State Average: 54.3%

Pennsylvania
Penn State: 84% – $12,844 – 41,817
State Average: 64.6%

Rhode Island
University of Rhode Island: 58% – $8,184 – 13,655
State Average: 67.1%

South Carolina
University of South Carolina: 63% – $8,346 – 23,955
State Average: 50.0%

South Dakota
University of South Dakota: 48% – $5,752 – 7,041
State Average: 43.3%

Tennessee
University of Tennessee: 58% – $5,932 – 27,620
State Average: 48.5%

Texas
University of Texas: 78% – $7,670 – 47,490
State Average: 45.8%

Utah
University of Utah: 56% – $4,988 – 22,845
State Average: 50.5%

Vermont
University of Vermont: 72% – $12,054 – 11,061
State Average: 56.1%

Virginia
University of Virginia: 93% – $8,690 – 21,889
State Average: 56.7%

Washington
University of Washington: 75% – $6,385 – 36,120
State Average: 59.2%

West Virginia
West Virginia University: 55% – $4,722 – 25,673
State Average: 42.6%

Wisconsin
University of Wisconsin: 79% – $7,185 – 38,652
State Average: 55.6%

Wyoming
University of Wyoming: 57% – $3,366 – 10,549
State Average: 57.0%

Why Borrowing for College in a Recession Is a Bad Idea

May 13, 2010 by Thomas / One Comment

Once upon a time, there was a belief that there was such a thing as a good loan with the general consensus being that the two most common ‘good’ forms of borrowing were home and college loans.

Then came the recent economic downturn and the housing crisis. All of a sudden, many homeowners found themselves owing more on their homes then their houses were worth. That development now has many folks realizing that borrowing funds for a home may not always be a good idea.

In addition to the housing meltdown, the economic crisis has taken a toll on employment opportunities. Those graduating from college this spring are about to enter what has been dubbed the worst job market in years.

With limited job prospects, large numbers of graduating students are being forced to take jobs that do not require a college diploma. If you are one of the students who borrowed significant sums of money only to be forced to take a job waiting tables or bar tending, you now have begun wondering why borrowing for college was ever seen as a ‘good’ idea.

College Grads Seeking Work

According to the Center for Labor Marketing Studies at Northeastern University, the percentage of graduates age 25 and under with a BA degree working in a job requiring a college degree has now dropped below 50 (as of 2009). Therefore, if you are graduating this spring, you face the distinct possibility (a one in two chance) that you will have to enter the work force by taking a job that does not require a bachelor’s degree. Such a development also means that one out of every two graduates cannot expect to earn a salary commensurate with their original career aspiration.

If you are a girl, the survey indicates that you have a slightly better chance to secure a job requiring a college degree. For women 25 and under, 55% (as compared to 49% for men) are currently working in a job that at least requires a college degree.

Worse yet is the data for young adults of Hispanic or African-American descent. For Hispanic males, just 40% of those with a degree are working in a job that requires a diploma. For black males, the number is a paltry 35%.

Loans Due and No Funds to Pay Them

While these percentages represent some of the worst numbers in the past 20 years, the current belief is that the downward trend will continue for the foreseeable future. Given the data, those pursuing a college diploma need to carefully reassess their aspirations. In particular, those thinking about borrowing money to pursue a degree need to carefully take stock of the current job environment.

Data clearly indicates that college graduates who take jobs below their education level will earn less in their initial work years. In fact, it can take seven to nine years to match the earnings of graduates who were able to land career-track employment upon graduation.

When one combines such data with other troubling numbers, that two-thirds of college students are graduating with student loans and that 25% of those who borrow end up owing more than $30,500, the results are startling. That is why 40 percent of seniors surveyed by NACE said they expect to need financial help from their parents after college.

The result is that students in this economic climate who borrowed even modest amounts of money have additional pressures upon them, the need to pay college loans. For that reason, graduates often find themselves taking any job that is offered just so as to begin the process of paying down those loans.

Even when employment options are available, those who borrowed for school are driven to select the job that pays the most. Students with significant debt generally continue to choose options based on what a job pays rather than pursuing the original career that inspired them to attend college in the first place. Significant college debt loads also lead to the potential delay in starting a family and/or buying a house.

When it comes to borrowing for college, the standard rule at one time was not to borrow more than your projected starting salary. Once upon a time, students could roughly gauge just what that starting salary would be.

Given the recent downturn and the difficulty finding work in your chosen field, such projections are no longer valid. In fact, given today’s economic climate, your starting salary will likely be far lower than those original projections for the foreseeable future.

That means that loans of any size will prove extremely challenging to pay off. Ultimately, borrowing money for college during an economic downturns appears to be a very bad idea.