Student Loan Debt and Alumni Perception of Return on Investment

The return on investment (ROI) for higher education continues to be a conversation for institutions and their many constituencies. Measuring ROI using post-graduation salaries is a popular yet limiting way to measure ROI. For higher education institutions, demonstrating ROI using salary leaves them little actionable data beyond funneling more graduates into high-paying career tracks. Alternative measures that not only demonstrate ROI but also provide insights for institutions on how to increase student success are needed. This study uses results from the National Alumni Career Mobility Survey (NACM) to explore the relationships between alumni perceptions of ROI and student loan debt. Results indicate that institutions can increase perception of ROI through ensuring that practices and policies related to student loans ensure that debt is manageable, can be paid off in a timely manner, and do not over-burden first-generation and other historically marginalized populations.