University Degrees Pay Off Over the Long Term

Source: Financial Post via Academica

The Financial Post has crunched the numbers to determine whether students would earn more by paying tuition for 4 years or by investing the same amount of money in a retirement fund. The study assumes that the average cost of a degree is $68,933; assuming a 5% return annually over 45 years, that amount would be worth $619,364 as an investment, and would offer students the chance to put in 4 years more time in the labour force. Based on an average income of $30,817 for a high school graduate, the hypothetical individual could, were they able to bank 100% of their after-tax earnings, make another $800,000 by investing their money at a 5% return, for a total of $1.4 M in 45 years’ time. That’s the same amount that the Council of Ontario Universities suggests a university graduate will make in excess of an individual with a high school diploma. However, this figure does not take into account increases in earnings due to inflation, which could lead to the university graduate earning an excess of closer to $2.1 M; wisely invested, that could make the value of a degree as much as $3.8 M greater than that of a high school diploma. A university graduate, the article says, is “more likely to be more financially independent during their working and retirement years,” and would have more options available to them.

Times Higher Education to Add India-specific Parameters to Ranking

Source: The Economic Times | January 6, 2014

NEW DELHI: Indian institutions could improve their scores dramatically in Times Higher Education’s globally cited World University Rankings as the British magazine has agreed to develop and include India-specific parameters for assessment from the next time.

Confirming the development, education secretary Ashok Thakur said the human resource development ministry had asked all groupings of domestic institutions such as the IITs, National Institutes of Technology and central universities to appoint a nodal person to coordinate with Times Higher Education to develop India-specific parameters.

Domestic institutions have long argued that the rankings, which give 55% weight to research indicators and 30% to teaching environment, including 15% to the faculty, do not take into account extenuating “Indian circumstances”.

No Indian institution has yet made it to the top 100 in the rankings, in which Panjab University is the highest ranked domestic institution clubbed in the group of universities ranked 226-250.

India’s premier engineering colleges, the Indian Institutes of Technology, made it to the list last year, with the IITs from Delhi, Kanpur, Kharagpur and Roorkee all ranked in the group of institutions between 351 and 400.

The government has been concerned over the poor performance of domestic institutions in international rankings and keen to ensure that the rankings take India-specific parameters on board.

There is little clarity on what exactly constitutes “Indian circumstances” except the constitutionally mandated reservation quotas (15% for scheduled castes, 7.5% for scheduled tribes and 27% for other backward classes) and the cross-cutting quota for physically-challenged persons. But issues including intake of foreign students, foreign faculty, marketing and branding of institutions will be addressed while designing India-specific parameters for assessment.

Academics and analysts argue that it is unfair to compare India’s top institutions with American or other western institutions. Centrally-funded institutions such as the IITs, which have a national mandate, cannot admit foreign students at the undergraduate level, and restrictions on assistantships for international students make it difficult to attract foreign students at the PhD level.

None of India’s publicly-funded higher education institution can hire foreign nationals as regular faculty members since guidelines prohibit hiring of foreigners for jobs with salaries less than $25,000 a year. Moreover, even at higher salaries, international faculty can only be brought in on contract for up to five years.

The ministry had also approached the widely respected Quacquarelli Symonds (QS) Rankings to develop India-specific parameters for assessment.

TCS Insights: By using India-specific parameters, Indian educational institutions will be better able to compete with international colleges and universities when ranked together. It is difficult for publicly funded institutions in India to measure up to global competition while unable to take in foreign undergraduate students and competing for PhD students from abroad. Times Higher Education has made it possible for such institutions to compete in a manner that is better suited for them.

Acsenda School of Management

acsendaSituated in Vancouver, Canada, Acsenda School of Management specializes in leadership and business with a distinct international focus. The school is a small, private institution with undergraduate programs, a Bachelor of Business Administration Degree program with different specialities since 2004 and, beginning in January 2015, a Bachelor of Hospitality Management Degree. Acsenda operates with its own academic governance model modelled to support a strong academic culture.

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