Kettering University Aligns College And Work To Maximize ROI

Forbes

30-06-2025

Emphasizing light, transparency, and interconnected learning spaces, the Kettering University ... More Learning Commons building fosters creativity, community, and hands-on collaboration—skills that students rely upon for success in coursework and co-ops.
A 2024 study from the Strada Institute for the Future of Work paints a bleak picture of college graduates. Over half are underemployed one year after college, and almost half remain in the same situation ten years later. Underemployment often arises because students graduate with theoretical knowledge but lack the practical skills directly relevant to employers' needs. For the past 100 years, Kettering University, through its unique co-op program, has had the solution to this problem, evidenced by the fact that 99% of its students are fully employed within one year after graduation. With the average student loan debt exceeding $38,000 and the average time to pay off student loans now exceeding 20 years, and with students increasingly questioning the notion that college is the best path to a secure future, the time has come to take a closer look at an alternative that works.
Kettering University's Unique Approach
Kettering University believes it has the answer in its co-op program. An engineering school founded in 1919 as 'General Motors Institute' to serve the budding automotive industry, Kettering has a unique 50% workplace/50% classroom model that provides clear answers to questions of return on investment and employability after college.
Dr. Robert K. McMahan, President of Kettering University, describes their approach in his advice to undergraduates: 'Don't focus on the college experience. Focus instead on likely outcomes ten years out.' He goes on to stress that 'at Kettering, we partner with over 500 companies to coordinate highly rigorous academics with mentored, hands-on work in each student's area of professional interest.'
The secret of Kettering's academic model is this commitment to 'hands-on work' enshrined in its co-op program, considered the most robust in the country. Kettering students begin co-oping with employers early in their first year and spend an equal amount of time over five years in the classroom and the workplace, graduating with a full two and a half years of meaningful job experience, and having earned as much as $100,000 during their studies.
For instance, a mechanical engineering student at Kettering might alternate academic semesters with paid, hands-on roles at General Motors, acquiring direct experience in automotive design, manufacturing processes, and project management.
By focusing on the long-term goal of creating future employees who are not just ready to work but ready to excel, Kettering has developed a model that produces graduates prepared to contribute as valuable employees on their first day of full-time work. In fact, by graduation, many have advanced beyond entry-level roles, finding themselves fast-tracked toward higher positions while their inexperienced peers from other schools face 12 to 18 months of training.
'It's a workforce supply-chain issue,' says McMahan, a successful venture capitalist as well as a renowned astrophysicist. 'We see industry as the client and students as the product, which may sound impersonal, but it's good for both parties. The extent to which higher education fails to understand itself as part of the workforce supply-chain is the extent to which it will continue to drift into irrelevance.'
McMahan also emphasizes that Kettering's combination of rigorous academics and mentored employment focuses on a specific goal: mastery, meaning that students don't merely learn theory—they repeatedly apply skills in real-world settings until they demonstrate consistent, superior competence. 'Our graduates succeed because they have gained a level of mastery in their chosen professional discipline. Mastery is critical to their employability.'
Kettering University Delivers Significant ROI
Kettering is clearly meeting this goal. A 2017 study showed that Kettering University was having significant success in categories like economic mobility and starting salaries. Most intriguingly, it was the top performer among 71 highly selective private universities when it came to moving students entering university in the bottom quintile of household wealth to being in the top quintile at age 34.
In regard to return on investment, the Georgetown University Center on Education and the Workforce ranked Kettering University 22nd among all private non-profit universities, placing it ahead of many more expensive, more highly selective institutions. According to CollegeFactual.com, Kettering University graduates realize an 8% annualized return on their educational investment.
Kettering University Graduates Ascend The Ranks
Not surprisingly, a remarkable number of Kettering graduates have reached positions in Fortune 500 C-suites, including some of the top executive roles. Kettering alumni have held president or CEO roles at General Motors, Yamaha Motor Corporation, Reuters, Valvoline, Caesars Entertainment, Inc., Climate Impact Partners, PHINIA, REC Foundation, Masco, SAE International, Singer Vehicle Design, Kuhmute, and CNext. In recent years, Kettering alumni have also led at Merrill-Lynch, Delphi, BorgWarner, Continental Airlines, Benchmark Capital (early investor in eBay, Snap, Red Hat, Jamba Juice, etc.), Gibson Guitars, Greyhound, LG Energy Solutions Michigan, and more. Significant results for a school with only 2,400 students.
But Will Kettering University Ascend The Rankings?
With such success, prospective students and their families should focus more on substantial ranking factors related to a student's academic experience or future success, rather than traditional ranking criteria that emphasize an institution's reputation or the publication and citation records of its faculty.
If the goal of education is a successful career and a meaningful life, individual attention and hands-on mentoring will matter much more than the size of the endowment or the selectivity of admissions, which are often included in common ratings. As dissatisfaction with the current state of undergraduate education continues to grow, the need for new ranking systems with criteria more relevant to families will increase. Whether this results in changes to existing methodologies or the development of new ones remains to be seen.
Kettering University Provides A Way Forward
Kettering University has a proven model of success with a 100-year track record. As many begin to question the value of a college education, institutions like Kettering University clearly demonstrate that the value is there, but only if the goals are clear. By keeping the focus on developing students with actual skills and meaningful experience, Kettering University provides a clear model for how it can be done. Whether other institutions can shift to a true student orientation remains to be seen.