Student Perspective
In return for their investment, Tarleton students receive a stream of higher future earnings that continue to grow throughout their careers. For example, Tarleton bachelor’s degree graduates on average earn an undiscounted $1.2 Million more than high school graduates over their working lives in Texas. The lifetime benefits of the Tarleton master’s degree over a high school diploma are $1.9 Million for graduates while they’re in the workforce, and $668,000 more than they would make with a bachelor’s degree.
Put simply, Tarleton graduates will receive $7 in higher future earnings for every dollar they allocate to their education — an average 23.2% annual return on their investment. That’s more than double the U.S. stock market’s 30-year average of 10.5%.
Taxpayer Perspective
Tarleton generates more in tax revenue than it takes. These benefits to taxpayers consist primarily of taxes that the state and local government collect from the added revenue in Texas. As Tarleton students earn more, they make higher tax payments throughout their working lives. These students’ employers also will make higher tax payments as they increase their output and purchases of goods and services.
For every dollar of public money invested in Tarleton in FY 2020-21, taxpayers will receive $4.10 in return over the course of students’ working lives. The average annual internal rate of return for taxpayers is 9.4%, which compares favorably to other long-term investments in the public and private sectors.
Social Perspective
Society as a whole in Texas benefits from Tarleton’s presence in two major ways. Primarily, the university increases the state’s economic base. This is attributed to the added income from students’ increased lifetime earnings (added student income) and increased business output (added business income), which raise economic prosperity in Texas. Benefits also consist of the savings generated by the improved lifestyles of Tarleton students.
For every dollar invested in Tarleton in FY 2020-21, people in Texas will receive $19 in added income and social savings for as long as the university’s FY 2020-21 students remain in the state workforce.