ROI of University Education is at least 100%

I read a CBC (Canadian Broadcasting Corporation) article today on student cheaters who use the services of custom essay writers for submitting course papers. Such writer charges $150 to $500 per paper, and one writer reported that there are 20 papers in one course. The $150 charge is for an easy paper, and it can go up to $500 per paper if it is difficult.

This piece of information is useful for estimating the value of university education because it is a real business transaction that happens between a university student and a custom essay writer. $150 to $500 is the cost a student is willing to pay to have his paper authored by someone else in order to get a good grade. Although it does not directly reflect the income the student will make after he graduates, the $150 to $500 cost reflects directly how much the student values his good grade.

The value of his university education can thus be evaluated in real dollar amount by the cost per paper as this cost reflects his salary expectation of a job he will have after graduation. After all, he won't be willing to part with his money if he believes he won't be able to graduate and makes enough money to pay back the cost.

The 20 papers per course is an extreme number for a course, I admit, but on average for an arts degree I estimate there may be 8 papers per course, while for engineering, in contrast, the number of papers goes down to 1-2. The difficulty level of paper submitted for an engineering course will be higher since it is more technical and there are not many custom essay writers who can plagiarize engineering papers easily. Thus, on average the price of a university course is

($150 × 8 + $500 × 2)/2 = $1100.

There are usually 10 courses per academic year, so the total cost is $11,000. $11,000 is the expected value of higher education yield in one year.

A Canadian student pays about $5,500 tuition fee (per year): this is the cost of university. Hence, the expected return of investment (ROI) of university education is at least 100%.

The ROI of university education is at least 100% since we do not put values into the network a student develops while studying at a university. Having a university degree is one of the best financial decisions one can make as it is quite rare to have a business with at least 100% ROI annually over four years.