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Return on Investment Analysis

American University ROI Analysis

Comprehensive ROI analysis based on tuition costs, graduate earnings, financial aid, and long-term earning potential.

ROI Summary

Total 4-Year Cost

$226,172

In-state tuition x 4

Earnings Premium

$26,328/yr

above high school diploma avg

Break-Even Point

8.6 years

After graduation

20-Year ROI

133%

Return on investment

ROI Analysis

American University's high tuition cost of $56,543 is offset by relatively high earnings for graduates. One year after graduation, the median salary is $50,329, increasing to $61,328 after five years and $77,370 after ten years. The median debt of $22,750 is manageable compared to the earning potential.

The debt-to-income ratio is favorable for American University graduates. With a median debt of $22,750 and a starting salary of $50,329, the debt-to-income ratio is approximately 0.45. This suggests graduates can reasonably manage their debt obligations.

Given the earnings data and median debt, the break-even timeline, or the time it takes for graduates to earn back their tuition investment, is relatively long. However, the high earning potential suggests a positive return on investment over time.

Generated from College Scorecard & IPEDS data

The Numbers

Annual Tuition (In-State)

$56,543

Median Debt at Graduation

$22,750

Median Earnings (5yr)

$61,328

Graduation Rate

79%

Receive Financial Aid

35%

Avg Aid Amount

N/A

Program-Level ROI

Program 4yr Cost Median Earnings (5yr) Est. 20yr ROI
International Relations and National Security Studies $226,172 $87,543 365%
Business Administration, Management and Operations $226,172 $120,970 660%
Law $226,172 $92,991 413%
Political Science and Government $226,172 $64,391 160%
Multi/Interdisciplinary Studies, Other $226,172 $58,815 111%
Public Administration $226,172 $97,983 457%
Management Sciences and Quantitative Methods $226,172 $0 N/A
Public Relations, Advertising, and Applied Communication $226,172 $75,287 256%
Economics $226,172 $103,677 507%
Communication and Media Studies $226,172 $87,484 364%
Finance and Financial Management Services $226,172 $86,053 351%
Accounting and Related Services $226,172 $90,564 391%

Peer Comparison

Financial Aid Impact

Before Aid

4-Year Tuition$226,172
Median Debt$22,750

After Aid (Estimated)

Estimated Total Aid$0
Net 4-Year Cost$226,172

Frequently Asked Questions

Based on government data, American University has an estimated 20-year ROI of 133%. The total 4-year cost is $226,172 and graduates earn a median of $61,328 within 5 years.

Methodology

ROI calculations are based on data from the U.S. Department of Education College Scorecard. The earnings premium is calculated as the difference between median graduate earnings and the national average earnings for high school diploma holders ($35,000).

The 20-year ROI formula: ((Earnings Premium x 20) - Total Cost) / Total Cost x 100. Break-even point: Total Cost / Annual Earnings Premium. All figures use in-state tuition and do not account for inflation, opportunity cost, or financial aid variations.

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