The Public Value of Higher Education

Most of us believe that commencement is by far the most meaningful celebration on any university campus. And it was on Saturday May 16, 2026, when we celebrated over 5,500 students at the IU Indianapolis Commencement Celebration. Carroll Stadium lit up with fireworks, and the sense of joy was palpable.

Watching our students and their families is a powerful reminder of our responsibility to our learners. What will our institution look like 3, 5, 10 years from now? How do we ensure we continue to serve our students and their families who invest in education?

Recent research reveals important insight into the role of public higher education.

Economic Growth and College Degrees

Research from the Georgetown Center for Education and the Workforce projects that between 2024-32:

• 18.4 million experienced workers aged 55-64 with postsecondary education will retire.
• 13.8 million younger workers aged 16-24 will enter the workforce with equivalent educational qualifications.
• The economy is expected to add 685,000 new jobs requiring postsecondary education and training.
• As a result, the nation will need an additional 5.25 million workers with postsecondary education, including 4.5 million who will need a bachelor’s degree or higher.

Earnings and College Degrees

A recent study led by the Postsecondary Commission in Texas looked at the earnings of more than 900,000 students who enrolled in bachelor’s, associate, or certificate programs at Texas public colleges between 2008 and 2019. After considering the cost of the degree and the opportunity cost of not earning a wage during that period, the study found:

• On average, 15 years after enrollment, students in bachelor’s-degree programs realized cumulative net earnings gains of $86,806 compared to those who did not enroll in college.
• Earning gains varied significantly by field of study (not so much across the institutions) from $15,000 to $175,000 in additional lifetime earnings, with every field showing a positive return.

Taxpayer dollars and Public R1 Research Universities

In 2024, public R1 research universities enrolled nearly 4.5 million students and generated $47 billion in federally funded research expenditures. Private R1 research universities enrolled fewer than 1 million students and generated $27 billion in research expenditures. One could make the case that taxpayers invested $27,000 per student in private R1 university compared to $10,444 per student at public R1 universities. IPEDS data also show that public R1 research universities punch above their weight compared to other public non-research focused universities. As the study points out, “the typical public R1 institution enrolled around 33,000 students, roughly twice as many as the typical private R1 university, and around three-times more than the average of other public four-year campuses.”

IU Indianapolis is a public R1 research university.

• Our enrollment has grown in the last two years (beginner class grew at 10% each year) and will continue to grow.
• Although federally funded research is challenged at the moment, our unique location in Indianapolis gives us unique opportunities to work with industry on translational research, which generates funding. Our most recent NSF-reported research expenditures increased by 15%, and our invention disclosures rose above the three-3-year average of 15 to 16.
• We take pride in our community-based scholarship, and our mission is strengthened by our commitment to be inclusive.
• We are committed to reversing Indiana’s decline in college-going rates, which have fallen from 65% a decade ago to 51% today. At the same time, we remain focused on preparing students to live and work in Indiana. Last fall, 83% of our incoming class were Hoosiers and nearly 90% of our graduates remain in Indiana after graduation.

Steven Mintz, professor of history at the University of Texas at Austin, recently wrote “What the University of the Future Will Look Like” and offers seven models that could emerge.

Do we fit into any of the seven or a combination of these? What should the IU Indianapolis model look like given our urban location, R1 status, public mission, and commitment to translational research?

I look forward to hearing from you.

Go Jags!

Latha Ramchand
Chancellor