Also, you can correlate the graduation rate to how much the college education is going to cost as well as give you an idea of when most students from that college will join the workforce or go to graduate school. Since an extra year that is needed for graduation can add to the cost, look at the 4 year graduation rate and the 6 year graduation rate as you compare colleges.
Graduation rate profiles are very different for private and public colleges. As many students apply to both public and private colleges, it is important to have different stress tests for public and private colleges and not clump them together.
Private Colleges
Since the cost of attending a private college is close to and in many cases exceeds $60,000/yr, the cost of spending an extra year at college is an almost overwhelming factor while evaluating a college's graduation rate. Usually, the most selective and most expensive colleges tend to have the highest graduation rates. However, there are many expensive private colleges with not so stellar 4 year graduation rates ( and yes every fall these colleges are there at high schools around the country trying to recruit students).
A private college graduation rate stress test should really focus on the 4 year graduation rate. Use the following table as you evaluate colleges and whether you should place it in your target college list.
| Range | 4-yr Graduation Rate |
|---|---|
| Top | 75% and above |
| Mid | 50%-75% |
| Bottom | Under 50% |
The 6 year graduation rate for a private college should approach close to 90%...i.e. most students should be done in 6 years! If the graduation rate is less than 75%, that warrants more research before automatically placing the college in your target or even a safety college list.
While it is tempting to correlate the educational philosophy, lifestyle factors, extracurricular options with the graduation rate, it is important to step back and be a bit strict with the stress test especially for private universities. As a private college education costs nearly a quarter of million dollars ( 4 X $60,000 = $240,000), it is imperative that the next career milestone does not get pushed out (or atleast not too much!).
Sometimes this stress test can get swayed if merit aid is taken into account. Some private colleges offer a fair bit of merit aid. If the college on your list is in the mid range of the stress test and there is a chance of merit aid, then it is important to find out if the proposed merit aid will still be available beyond 4 years till the completion of study as well as understand what is the median 4 year graduation rate. This is definitely one of the times you would like to call the admissions office.