New graduates at CCNY about to embark on a new socially mobile life powered by a CCNY degree.
Contextualizing the financial and lifelong value of pursuing a college degree, Benjamin Franklin once said “an investment in knowledge pays the best interest.” At The City College of New York, a new study by labor analytics firm Lightcast on the value of a CCNY degree once again underscores this old maxim by one of the nation’s Founding Fathers.
The Lightcast study, which covered fiscal year 2023-24, determined that students see a high rate of return on their investment in CCNY, with the average annual rate of return being 20.9%. This is higher than the stock market 30-year average of 10.9%.
For every $1 invested in their education in FY 2023-24, CCNY students gain $7.90 in higher lifetime earnings. Taxpayers gain $1.60 in added tax revenue and public sector savings. Society, meanwhile, gains $9.80 in added income and social savings.
Based on industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, Lightcast noted the average earnings by education level at career midpoint:
- High School - $45,500;
- Certificate - $49,900;
- Associate - $57,300;
- Bachelor's - $92,400;
- Master's - $114,800;
- Doctorate - $135,100; and
- Professional - $182,000.
“The average CCNY bachelor’s degree graduate experiences a substantial increase in earnings,” said Lightcast. “Specifically, the average CCNY bachelor’s degree graduate annually earns $46,900 more compared to what they would have earned with only a high school diploma working in New York. Over a working lifetime, the present value benefits of a bachelor’s degree—accounting for the lifecycle earnings curve and workforce attrition factors—amount to a present value of $406,200 in higher earnings per CCNY bachelor’s degree graduate.”
So, not only do CCNY bachelor’s degree graduates fully recover the money invested towards their degree from their higher lifetime earnings, but their higher earnings will also continue to grow over time. The average payback period for CCNY bachelor’s degree graduates is 7.6 years, meaning that 7.6 years after the initial investment of out-of-pocket costs and forgone earnings, the cumulative wage increase will be more than enough to fully recover those costs.
Lightcast assesses the benefits received by CCNY bachelor’s degree students based on the costs and benefits of investing in their education. The students’ investments are their out-of-pocket expenses, the cost of interest incurred on student loans, and the opportunity cost of attending the college as opposed to working. In return for these investments, students are expected to receive a lifetime of higher earnings.
In addition to industry and employment data from the Bureau of Labor Statistics and Census Bureau, the study uses a wide array of data that are based on multiple sources. This includes:
- Academic and financial reports from CCNY for the past three years;
- Data on CCNY alumni’s employment outcomes from Lightcast’s recent Alumni Pathways study;
- Outputs of Lightcast’s impact model; and
- A variety of published materials relating education to increased earning potential.
Lightcast’s value of a CCNY degree evaluation was part of a larger study that looked at CCNY’s economic impact on the New York economy. The firm pegged that at an astounding $3.7 billion in fiscal year 2023-24. Click here to read that report.
Hannah Ruffridge, Senior Director of Education Professional Services at Lightcast said, “CCNY and Lightcast have been partnering together for nearly a decade. Together, we have explored the regional workforce talent pipeline needs and how CCNY can best align with them. We have captured and analyzed graduate outcomes including in-field, local retention, and top employers. we have also conducted multiple economic impact studies, illustrating CCNY's immense value to the regional economy and strong return on investment to students, taxpayers, and society. This year, we went deeper to demonstrate the distinct value of a bachelor’s, master’s, and doctorate degree from CCNY.”
“Our partnership with Lightcast continues to be a signature anchor in our economic development ecosystem and this report highlights the tremendous teaching, research and professional staff support provided as part of the City College experience,” said Dee Dee Mozeleski, Senior Vice President of the Office of Institutional Advancement, Communications and External Relations.
About The Lightcast Methodology
When measuring the value of an institution as a whole or specific degree, Lightcast employs a conservative, defensible methodology. For example, it employs counterfactual scenarios to strictly exclude impact that would have occurred even without CCNY. Across 25 years and 3,000+ studies, the Lightcast methodology has withstood the scrutiny of many economists, including some who previously worked at the Federal Reserve and approached the study with skepticism. “It has been a true pleasure to combine our data and methodologies with such a forward-thinking institution as CCNY," said Ruffridge.
About The City College of New York
Since 1847, The City College of New York has provided a high-quality and affordable education to generations of New Yorkers in a wide variety of disciplines. CCNY embraces its position at the forefront of social change. It is ranked #1 by the Harvard-based Opportunity Insights out of 369 selective public colleges in the United States on the overall mobility index. This measure reflects both access and outcomes, representing the likelihood that a student at CCNY can move up two or more income quintiles. Education research organization Degree Choices ranks CCNY #1 nationally among universities for economic return on investment. In addition, the Center for World University Rankings places CCNY in the top 2.2% of universities worldwide in terms of academic excellence. Labor analytics firm Lightcast puts at $3.7 billion CCNY’s annual economic impact on the regional economy (5 boroughs and 5 adjacent counties) and quantifies the “for dollar” return on investment to students, taxpayers, and society. At City College, more than 16,500 students pursue undergraduate and graduate degrees in eight schools and divisions, driven by significant funded research, creativity, and scholarship. In 2023, CCNY launched its most expansive fundraising campaign ever. The campaign, titled “Doing Remarkable Things Together,” seeks to bring the College’s Foundation to more than $1 billion in total assets in support of the College's mission. By May 2026, more than $500 million had been raised. CCNY is as diverse, dynamic, and visionary as New York City itself. View CCNY Media Kit.
Jay Mwamba
p: 917.892.0374
e:
jmwamba@ccny.cuny.edu