36 Chapter 3: Methodology million, excluding $1.7 million in offsetting residual aid that is paid directly to students.36 Finally, we have the present value of future student loan costs, amounting to $193.3 thousand between principal and interest. Summing direct outlays, opportunity costs, and future student loan costs together yields a total of $10.6 million in present value student costs. Linking education to earnings Having estimated the costs of education to students of the Business program, we weigh these costs against the benefits that students receive in return. The relationship between education and earnings is well documented and forms the basis for determining student benefits. Statemean earnings levels at themidpoint of the average-aged worker’s career increase as people achieve higher levels of education. The differences between state earnings levels define the incremental benefits of moving from one education level to the next. A key component in determining the students’ return on investment is the value of their future benefits stream; i.e., what they can expect to earn in return for the investment they make in education. We calculate the future benefits stream to SUNY WCC’s FY 2021-22 Business program students first by determining their average annual increase 36 Residual aid is the remaining portion of scholarship or grant aid distributed directly to a student after the college applies tuition and fees. Table 3.3: Present value of student costs, FY 2021-22 (thousands) Direct outlays in FY 2021-22 Tuition and fees $8,034 Less federal loans received -$196 Books and supplies $1,148 Total direct outlays $8,987 Opportunity costs in FY 2021-22 Earnings foregone by non-working students $1,769 Earnings foregone by working students $1,197 Value of leisure time foregone by working students $106 Less residual aid -$1,680 Total opportunity costs $1,392 Future student loan costs (present value) Student loan principal $136 Student loan interest $57 Total present value student loan costs $193 Total present value student costs $10,572 Source: Based on data provided by SUNY WCC and outputs of the Lightcast impact model
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