Just heard this today...for the state of Indiana.
Even though the out-of-pocket payments (versus "list price") for higher education went up 125% when adjusted for inflation from 1980 to 2005, the time that it takes to make up for both those payments, as well as the opportunity cost of working instead of going to school, has shrunk from 12.1 yearts to 6.7 years over the same time frame.
This study didn't break down public versus private, but my guess is that the economic benefits of a private education are not immediately felt and therefore push that average payback time up a bit. (This doesn't mean that a private higher education doesn't have other benefits besides economic, nor does it address the long-term economic benefits.)
We've talked about this kind of stuff before here, so I thought you would find it interesting.
There are some pretty obvious economic benefits that aren't "long term". Don't forget that you can get two majors and a minor in four years at MU and something comparable at many private schools. A lot of public schools take five years to get one major and don't even offer minors.
Unless the program requires it (accounting, education) most students at public universities take longer to graduate because they change majors, study abroad, etc. without the same financial impact than students at private universities. IOW, the vast majority of students at public universities can graduate in four years - if they do not it is due to choices they have made, not lack of access to certain courses.
Interesting report .. pretty counter-intuitive. Is there a link to the study?
I've been trying to find it. It was a verbal report though and can't seem to find anything about it on the web.
I've been feeling kind of guilty because my parents and grandparents paid for my entire education to MU. My wife and I just simply cannot afford to do the same with our children. My eldest is a freshman, and he is responsible for the "student loan portion" of his finances, about $5,500 per year. Any money that he earns through work or through scholarships can be directed toward reducing this amount.
This study lessens my guilt a little because it is obvious that he'll be the one reaping the economic benefit...even more than I did.