Updated March 2026 · College Scorecard reference data
Is My Degree Worth It?
Enter expected total student debt, first-year salary, projected job growth, and the school’s graduation rate to get a 0–100 College ROI Score and A–F grade — calculated with the same five-factor methodology we apply to thousands of school + major combinations across U.S. higher education.
How the College ROI Score Is Calculated
The score is a weighted composite of five financial-aid signals that together describe whether a degree pays back the debt it requires. Each factor produces a sub-score from 0–100, and the final number is rounded to the nearest whole point.
- Debt-to-income ratio (35%): total borrowed divided by first-year salary. Below 0.75x scores 100; above 1.5x scores 0.
- Earnings premium over a high-school diploma (25%): first-year salary divided by the $32,000 national high-school median. A 50% premium scores about 40, a doubled salary scores 80+.
- Job market outlook (20%): Bureau of Labor Statistics 10-year projected employment growth, scaled so 5% growth = 25 points and 20% growth = 100.
- Graduation rate (10%): the share of full-time students who complete the degree. A direct 0–100 contribution.
- Debt vs. national average (10%): your debt compared to the national $29,400 average. Below half the average maxes out; above 1.5x zeros out.
The grade thresholds (A ≥ 80, B ≥ 65, C ≥ 50, D ≥ 35, F < 35) are calibrated so a typical “break-even” degree — debt around 1x starting salary, modest job growth, average completion — lands in the C range. A grade-A combination has clear evidence of repayment headroom; a grade-F combination is showing red flags on more than one factor.
Reading Your Result
The headline number is the composite score, but the debt-to-earnings ratio shown below it is the single most actionable figure. Anything under 0.5x — meaning your debt is less than half a year of starting pay — is excellent and gives you flexibility to switch jobs, pursue graduate school, or absorb a recession. From 0.5x to 1.0x is a healthy range that tracks national averages. Above 1.0x, repayment starts to crowd out other financial goals; the federal income-driven repayment plans become important. Above 1.5x, the math rarely works without forgiveness or an unusually steep earnings ramp.
A grade in the C or D range does not necessarily mean “don’t go.” It means the financial signal is mixed and you should look hard at scholarship aid, in-state tuition, community-college transfer paths, or alternative credentials. The Is College Worth It guide walks through how to react to each grade band.
Where the Reference Numbers Come From
Every reference value in the calculator is sourced from a federal public dataset. The national high-school median earnings comes from the U.S. Census Bureau’s American Community Survey educational-attainment tables. The national average student debt comes from the U.S. Department of Education College Scorecard. School-level graduation rates and earnings come from IPEDS, the Integrated Postsecondary Education Data System. Job-growth projections are from the BLS Employment Projections program.
For a borrower-rights and repayment perspective, the Consumer Financial Protection Bureau publishes plain-English guidance on every federal loan program, and the Federal Student Aid portal hosts the actual application and repayment calculators. This calculator is an educational tool, not a financial product or loan offer.
Frequently Asked Questions
How does the College ROI calculator work?
The calculator combines five inputs into a single 0–100 score: debt-to-income ratio (35%), earnings premium over a high-school diploma (25%), 10-year job market growth (20%), school graduation rate (10%), and your debt versus the national average (10%). The score maps to a letter grade — A is 80+, B is 65–79, C is 50–64, D is 35–49, F is below 35.
What is a healthy debt-to-income ratio for student loans?
Federal financial aid research suggests monthly student loan payments should stay under 8% of gross monthly income. At a standard 10-year, 5% repayment, that translates to total debt below roughly 0.75x your annual starting salary. Above 1.5x, repayment becomes very difficult without income-driven plans or consolidation.
Where do you get the high-school earnings benchmark?
The earnings premium factor uses a $32,000 high-school-only median, drawn from the U.S. Census Bureau's American Community Survey. If your projected first-year salary clears that bar by a wide margin, the premium score climbs; if it does not, the score signals that the degree may not pay back the debt.
Why does graduation rate matter for ROI?
Most distressed federal student loans are held by borrowers who took on debt but never finished a degree. Graduation rate captures completion risk: a 90% rate means almost everyone who enrolls finishes, while a 30% rate means most enrollees walk away with debt and no credential. Schools with low completion rates lose ROI points even when their graduates earn well.
Should I use this calculator to make a final decision?
Treat the score as a sanity check, not a verdict. Real ROI depends on factors this tool cannot model — financial aid packages, family support, in-state versus out-of-state tuition, intended graduate school, and personal career fit. Use the score alongside official data from the U.S. Department of Education College Scorecard and the Consumer Financial Protection Bureau before borrowing.
How often is the underlying data refreshed?
Reference benchmarks (national average debt, high-school earnings, job-growth rates) are refreshed each time federal data updates. The current dataset was last updated March 2026. Individual school and major figures are pulled from the latest College Scorecard release.
Sources: U.S. Department of Education College Scorecard, IPEDS, Bureau of Labor Statistics Employment Projections, U.S. Census Bureau ACS. All datasets are federal public domain. Loan-rights and repayment guidance: Consumer Financial Protection Bureau (consumerfinance.gov).
Last updated 2026-03-15 · Reference benchmarks refreshed with each federal data release.