With looming budget cuts, rising tuition and tough times ahead, students may feel a squeeze on their bank accounts. However, a study released in the January edition of SmartMoney magazine, which ranked UW No. 5 among public schools for best return on investment, may give some students a glimmer of hope.

The study looked at the cost of a degree for out-of-state students in 1993 and 2005 — at UW, $22,935 and $62,632 respectively — and compared that to the median salary of alumni three years and 15 years after graduation — $48,800 and $85,300 — showing an average payback of 225 percent for attending the University of Washington.

“The University, we think, offers a very good educational experience … and that’s because we have a really good faculty and programs, and we’ll continue to maintain that,” said Norm Arkans, associate vice president of media relations and communications at the UW. “It’s going to be harder in the next biennium … but we’ll make it.”

According to the SmartMoney survey, Texas A&M gives the “best bang for your buck” with an average return of 315 percent.

The UW was also recently ranked No. 11 on a list of top public schools published by U.S. News & World Report.

“I really like UW; it’s definitely one of my favorite places ever, and the student life and education here put together just makes it a great school,” said Sarah Tinius, a junior studying physics and astronomy.

While the survey is good news for most undergraduates, it does not take into account graduate or professional students.

Its methodology has also come under criticism for being too simplistic and too critical on Ivy League education, as no private schools were within the top 18 in the overall ranking.

Princeton was ranked the best Ivy League school, with a 132 percent return.

A study like SmartMoney’s reinforces a few commonly-held perceptions, including the fact that public universities, particularly for residents, are generally more affordable than many private universities, Arkans said.

However, while private universities do have a higher sticker price, a lot of students at private schools receive financial aid in greater proportion to their tuition costs, making some private schools more affordable for out-of-state students. This factor was not considered in the ranking process.

“I’m always surprised when UW gets a high ranking,” said senior Nathan Ma. “It’s getting way too expensive … thank God I’m graduating so I don’t have to deal with [increasing tuition].”

With tuition costs slated to rise in the coming years, UW could lose its edge when it comes to rankings based on standards such as the ones SmartMoney uses.

Even though the UW enjoys being ranked high in surveys such as SmartMoney’s, what’s really essential is affordability and value of education, said Phyllis Wise, provost and executive vice president.

“What’s really important to emphasize is that our decisions aren’t driven by how we are ranked, but doing what is right for our students and faculty and preventing harm to them,” Wise said.

Reach reporter Doris Wu at news@dailyuw.com.