ETC College Ranking Index - Data Methodology and FAQ
Data and Methodology
The ETC college ranking system empirically determines the Economic Value Added, by each college ranked within our system. We define economic value added as being the improvement in earnings and employability of graduates; measured against the total cost of the education.
Some of the metrics used in calculating the ETC College Rankings Index are:
- Percentage of graduates employed in occupations which utilize their field of study
- Average salary earned by recent graduates, by school for each major category (adjusted for region, occupation and other variables)
- Percentage of persons employed within one year of graduation
- Major, referenced against similarly situated students at other institutions
- Graduation rate and the number of years to graduate
- Tuition- in state, net cost
- Loan default rates
- Other proprietary input variables which norm students to a common standard for each school and major
Frequently Asked Questions
What significant changes were made from the 2017 rankings to the 2018 ETC Index?
Each year, we modify the methodology of our rankings to reflect the interests of families who are engaged in the college planning process. This latest ETC Index has been modified in accordance with the significant shift in families’ attitudes regarding college – that of concern about the outcomes from college (jobs), and also in reducing costs. Furthermore, families now recognize that there are risks involved with sending a child to college. Given the high cost of college, significant capital is at risk. As families have recognized that all colleges and all majors do not necessarily lead to success in the labor market, they are becoming much more discerning in trying to avoid pitfalls and failed outcomes.
Here’s what we did with our models to provide families with a list of colleges that match up with their interests:
- We increased the weighting of occupational outcomes: schools whose graduates are more frequently employed in jobs that are the result of a required major were rewarded accordingly. Starting salaries were also increased in their weighting.
- With respect to college costs, we updated our models with a two-fold solution: 1- the most practical means of controlling costs is to graduate students on a timely basis. The average time to graduate from a 4 year public institution is 5.3 years. Our models now reward schools with high graduation rates in four years, and 2- we’re rewarding schools with lower relative total costs, slightly more than we did in prior years.
What are the basic criteria for schools included in your ranking system?
The ETC College Rankings Index is comprised of accredited 4-year colleges, with annual enrollments greater than 800 students. The Index analyzes data for over 1,200 colleges, representing 97% of all students enrolled in 4-year colleges.
Does your system use SAT or ACT scores as a component of your ranking system?
Only to the extent that we control for the quality of students as an input measure for each school. We control for the aptitude of the student populations of all schools we rank. In plain English, students with lower SAT scores typically earn less money over the course of a career than do their counterparts with higher SAT scores, when controlling for educational attainment.
I see a lot of state schools ranking highly in your system. Why is this?
Public, state run schools generally provide a very good education for an excellent price. The result being that many of these schools offer an excellent value relative to most other categories of colleges. Academic standards are uniformly high in most state schools and a relatively high percentage of their graduates enter the workforce successfully; with meaningful occupations and high relative salaries. Additionally, graduates from these state schools typically have low debt loads which translates ultimately to low loan default rates.
The impetus for our College Rankings Index is to provide reliable information that helps students develop successful careers with a low financial burden. Therefore, we encourage value conscious students and parents to strongly consider their in-state public college system. In almost all regions of the U. S., you have access to a very good education, at a heavily subsidized price.
How does your ETC College Ranking Index compare with other college ranking systems?
When reviewing some of the other ranking systems, it is evident that SAT and ACT scores are commonly relied upon as a proxy for the quality of the education delivered by the schools. SAT and ACT scores indicate the quality of the students and in many instances, are not correlated with the quality of education provided by a school. Also, the ETC Index is the only ranking system that uses actual outcomes data (jobs and salaries) as a component of the ranking methodology.
How should I incorporate the college rankings into my college and career planning process?
For starters, understand the purpose of our rankings system. We developed it to enable you to identify schools that provide a quality education with proven career placement records, at the lowest possible cost. We define 'quality education' as being the development of a skill set that is marketable, i.e. a real career with stable earnings.
What is more important; selection of a school or the major field of study?
The data show that both are important to a successful career outcome. However, the selection of major is more closely correlated to a successful career outcome than is the choice of a particular school.
Which majors should I consider and which should I avoid?
There is no simple answer to this question. You should absolutely consider the field of study that you're good at and steer clear of what you're not good at. However, some majors are literally dead ends for all but the very best students. Our CareerBuddy program can assist you in the determining majors and careers which are consistent with your capabilities.
Why are your salary numbers substantially lower than what I've seen from other sources?
The salary values shown here are based on ALL persons employed full time, within 1 year of graduation. Following is an example of the concept of our salary calculation methodology.
ACME University had 6 persons graduating with accounting degrees last year, 4 of whom are now working full time:
- 2 became accountants, earning $45,000
- 1 became a retail sales manager, earning $30,000
- 1 became a bartender, earning $20,000
If it is true that a college degree could add over $1,000,000 to my career earnings, why should I be concerned with the cost of school?
First point- the additional $1,000,000 is most likely to be achieved by those whose degree actually tracked to a job related to that degree/major (too many don’t).
Secondly- the higher value field that a degree is in- the more likely you are to realize the $1,000,000 increase.
With respect to the cost of a school, when you calculate the total cost of obtaining a degree including interest expenses, you will see that it can take over 20 years to pay back your loan obligations for schools costing over $20,000 annually. Furthermore, the higher the cost of your education, the more likely you are to pass the threshold of not meeting your debt obligations and going into default.
Why does ETC place so much emphasis on career outcomes, debt management and salaries?
College is not a career in itself- it is a stepping stone/training to a career. It is where young people acquire skills that should enable them to become self-sufficient and contributing members to society.
Does ETC advocate any specific education and career planning guidance for students?
Yes. We feel strongly that every student should utilize all of the educational resources available to them, so as to attain the level of education necessary to become employed in the career they have identified. They should do so with a strong emphasis on managing costs and debt to the best extent possible. Most colleges have career centers, and we encourage students to work with them towards their career goals, and to obtain internships.
Even more importantly, prior to applying to any college, we encourage families to contact a professional college consultant or counselor to assist with the process. They have the expertise to help you find the most appropriate college and major, and they can help you to save substantial costs through their knowledge of grants, scholarships and other means of saving on costs.
I am looking for information relating to a school that I don’t see as being available of your website. What can I do?
Our proprietary research services are available at $400 per hour. Send us your questions and we will contact you to discuss your inquiry firstname.lastname@example.org.
What credentials does ETC have to provide the kind of information it offers?
Our data partner, Job Search Intelligence (JSI) is the leading provider of information relating to educational attainment and career outcomes. JSI's data is relied upon by more than 5,000 employers including over half of the Fortune 500, some of the largest student loan servicers in the U. S., over 3,000 university career centers and career planning offices, compensation consultancies, and millions of job seekers annually.
What is Educate To Career?
Educate To Career (ETC) is a 501(c)(3) nonprofit. Our mission is focused on helping our youth (particularly the disadvantaged) to secure their best futures via college and career. We do that by developing and disseminating free online data and programs connecting jobs and salary outcomes to college, career and financial planning.
Job Search Intelligence, LLC is the primary data provider for ETC. JSI provides the following statement regarding its sources of data: The data are derived from a plurality of sources within government agencies and educational institutions. These sources include and are not limited to: U. S. Department of Labor, U. S. Bureau of Labor Statistics, National Center for Education Statistics, U. S. Census Bureau, Common Data Set Initiative, U. S. Equal Employment Opportunity Commission, U. S. Bureau of Economic Analysis, U. S. Federal Reserve. All data and methodologies are protected by copyright, patents and pending patents. All rights reserved.