Golden Returns: A Regional Look at the Return on Investment of California's Community and Career Colleges

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Written By Michael Itzkowitz

August 6, 2025

The HEA Group is proud to announce the release of Golden Returns: A Regional Look at the Return on Investment (ROI) of California's Community and Career Colleges, a groundbreaking analysis conducted in partnership with College Futures Foundation.

A First-of-Its-Kind Regional Analysis

This comprehensive study evaluates 327 two-year institutions across 12 of California's economic regions, covering more than 1.2 million students attending public, nonprofit, and for-profit institutions statewide. Using federal data from the U.S. Department of Education and our Price-to-Earnings Premium (PEP) metric, the analysis examines how long it takes students to recoup their educational costs.

Key Findings

Top Performers Deliver Rapid Returns

  • The top 25 institutions enable students to recoup their net costs within six months

  • 23 of these top performers are California Community Colleges

  • These institutions span seven of the 12 economic regions analyzed

  • Many serve predominantly low-income students while charging less than $5,000 annually

Dramatic Regional Disparities

The analysis reveals significant geographic inequities in educational ROI:

  • Bay Area: 38% of institutions offer ROI in under a year

  • Inland Empire: Only 6% of institutions provide ROI in under a year, with over a third providing no measurable ROI

Sector Performance Differences

Public institutions significantly outperform private alternatives:

  • Public colleges: 40% allow students to recoup costs within a year

  • Private institutions: Only 5% show the same outcome, with 45% providing no economic ROI

Implications for California's Future

This analysis comes at a critical time as federal accountability frameworks for higher education take center stage. The findings provide both learners and institutions with actionable data to drive meaningful improvements in educational value and economic mobility.

The regional lens offers institutions clear insights into how well they align with local workforce demands and where programmatic adjustments may be needed to better serve their communities.

Access the Full Analysis

The complete report, including detailed methodology, institution rankings, and downloadable data, is available here.

The original Price to Earnings Premium was developed by the HEA Group with and for Thirdway.org.

 
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