Private colleges with the biggest payoff

private college roi princeton universtiy

20-year return on investment: $932,500
Annualized return: 13.7%
Total 4-year cost of attendance : $217,300

Among the Ivy Leagues, Princeton leads the pack when it comes to giving students the best bang for their buck.

The New Jersey-based school has one of the largest endowments in the country, and is very selective about admissions, both of which can lead to better student outcomes, said PayScale's Frank.

"The more selective schools spend a lot more per student in terms of support services," she said. "They also are good at establishing really great networks for connecting with employers."

According to the school, more than half of Princeton graduates found jobs through the school's career services, with the largest number going into finance and insurance professions.

First published March 10, 2015: 1:18 PM ET

Source: PayScale
Based on employee survey data, PayScale calculated total median pay for each private school's undergraduate alumni over a 20-year period and compared it to the median pay for a high school graduate over 24 years. The return on investment (ROI) in 2014 dollars was determined by taking the difference between those median pay figures and subtracting the cost of attending the school in 2014 -- including tuition, room and board, and other costs -- and adjusting for scholarships and grants. The annualized ROI is calculated by dividing the earnings differential by the total cost and represents the percent of expected ROI received each year after graduation. Unlike in previous PayScale reports, the earnings differentials in this report do not take into account graduation rates. Alumni who attended graduate school or other higher education were excluded.

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