Affordability vs. prestige – When do both matter?
Every year, university applicants face a common dilemma: When granted admittance to multiple universities, should they choose an expensive, high-ranked school or a more affordable option?
With the price of higher education in the U.S. rising, domestic and international students alike have begun to question the long-held assumption that a pricey, elite education will, eventually, offer big returns. While well-respected, brand-name universities can certainly expand career opportunities for some, it’s not a guarantee. So which schools actually offer the best return on investment (ROI) on your international education?
Below, we answer some of the most commonly asked questions from prospective students wondering whether to choose the university’s brand name or to focus on the cost of a postgraduate degreeDoes prestige make a difference in career outcomes?
Yes, a prestigious international education can make a difference in career outcomes – but only at the very top. A study conducted by the Harvard-based nonprofit Opportunity Insights found that attending an Ivy League or “Ivy-plus” school, such as Stanford or Duke, can greatly increase a graduate’s chances of working for a prestigious company and increase one’s future earnings. Data from Georgetown University’s Center on Education and the Workforce confirmed that the median 10-year ROI for Ivy League graduates is nearly double that of graduates from state schools or smaller private liberal arts schools.
This is especially true for students entering competitive, high-salary sectors such as finance, business and consulting, where networking and name recognition can make a big difference during the hiring process.
But Ivy League schools are exceedingly hard to get into, with acceptance rates at Harvard, Stanford and Columbia dropping below 5%. So what choice should you make for your international education if you don’t get accepted to one of the top 10-20 universities nationwide? Does prestige still count?
What schools offer the best ROI on your international education?
The Georgetown University data shows that, while Ivy League schools offer a high 10-year median ROI at US$265,500, the next 63 top schools in the U.S. offer a solid 10-year median ROI of US$135,000. Moreover, the public flagships in each state, like the University of Virginia or UMass Amherst, generally outperform elite private schools outside the Ivies by 9%, with a median 10-year ROI of US$148,000.
Conclusion? The allure of an elite school can be enticing, but you should make your decision based on real outcomes over optics. Most of the time, when given the choice between private and pricey or public and affordable, public and affordable is the way to go.
How do I estimate the ROI of my international education?
If you’re trying to determine which of your potential universities will offer the best long-term returns, make sure to consider the following factors:
Total cost
Tuition doesn’t account for the total cost of your education – you also have to budget for the cost of housing, books and materials, health insurance and more.
The total cost of a program can be significantly altered by a factor like location, which determines the price of rent, food and transportation. While attending a university in a big city may give you access to a wider array of internship and job opportunities, it will also cost a lot more than studying in a college town.
Field of study
Your intended field of study makes a big difference in your estimated ROI. It may be worth shelling out the money for a prestigious degree program if you plan on entering a high-demand, high-paying field like finance, tech or health care. On the other hand, if you plan to pursue a less lucrative field, it may be prudent to choose a more affordable degree option, especially if the career you are pursuing is less brand oriented, i.e. healthcare.
For insight into which degree programs offer the highest returns, check out MPOWER Financing’s commonly selected majors for international students.
Graduate outcomes
Use platforms like LinkedIn to learn about the company placements and job titles of graduates from your target schools. You can also reach out to career services at your prospective universities to learn more about alumni salary ranges, postgraduate employment rates and top employers. Alumni outcome data can give you a clearer picture of what your professional life might look like after a particular degree program and help you determine which schools are most worth your money.
If you turn to international student resources such as college guides for help comparing schools, make sure they factor alumni outcomes into their rankings. The 2025 Princeton Review of Best Value Colleges, for instance, evaluates based on several criteria, including graduation rates, student debt and alumni salaries.
At the end of the day, there are several elements that influence ROI, from location to financial aid to field of study. All these factors need to be carefully considered when estimating the financial return of a degree program.
How much debt should I be willing to take on for an elite international education?
In the U.S. and Canada, financial aid is limited for international postgraduate students. Borrowing money from private education lenders like MPOWER Financing can make an international education possible, but borrowing becomes a problem when students don’t think critically about their anticipated salaries after graduation.
Before borrowing money for your degree, you should:
- Estimate your starting salary after graduation: Your first salary after school should realistically cover your loan repayments – don’t choose to attend a university where you’ll have to borrow more than you can feasibly repay. You can use resources like PayScale or Glassdoor to learn about salaries in your preferred field.
- Look into other funding options: Don’t pay more for your international education than you need. Before borrowing, explore scholarships, grants, fellowships and assistantships for international students, both at your university and externally. Get started with MPOWER’s list of graduate student scholarships.
- Explore international student work opportunities: See if your university has on-campus job opportunities or CPT for international students. Working while you study can not only be a great introduction to your desired field but can also reduce your overall debt.
For international student loans with competitive interest rates, no prepayment penalty and a streamlined repayment process, check out MPOWER Financing. With MPOWER’s no-cosigner, no-collateral international student loans, you’ll not only open the door to your dream international education but also gain access to holistic student services through MPOWER’s Path2Success program.
Want to get started? Check your eligibility today.
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