38 Chapter 3: Investment analysis to $15.6 million, excluding $17.7 million in offsetting residual aid that is paid directly to students.28 Finally, we have the present value of future student loan costs, amounting to $2 million between principal and interest. Summing direct outlays, opportunity costs, and future student loan costs together yields a total of $48.1 million in present value student costs. Linking education to earnings Having estimated the costs of education to students, we weigh these costs against the benefits that students receive in return. The relationship between education and earnings is well documented and forms the basis for determining student benefits. As shown in Table 1.4, state mean earnings levels at the midpoint of the average-aged worker’s career increase as people achieve higher levels of education. The differences between state earnings levels define the incremental benefits of moving from one education level to the next. 28 Residual aid is the remaining portion of scholarship or grant aid distributed directly to a student after the college applies tuition and fees. Table 3.1: Present value of student costs, FY 2021-22 (thousands) Direct outlays in FY 2021-22 Tuition and fees $27,008 Less federal loans received -$2,070 Books and supplies $8,594 Less direct outlays of personal enrichment students -$3,072 Total direct outlays $30,460 Opportunity costs in FY 2021-22 Earnings foregone by non-working students $19,789 Earnings foregone by working students $12,415 Value of leisure time foregone by working students $1,102 Less residual aid -$17,726 Total opportunity costs $15,580 Future student loan costs (present value) Student loan principal $1,439 Student loan interest $603 Total present value student loan costs $2,041 Total present value student costs $48,081 Source: Based on data provided by SUNY WCC and outputs of the Lightcast impact model.
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