Costs of Business School: A Wise Investment?
by Robyn Tellefsen
There's a reason why the MBA is the world's most popular graduate degree. Its value to individuals, organizations, and society as a whole is immeasurable. But, to paraphrase popular superhero lore, with great value comes great cost.
If you know you're going to be spending some serious money, you'd better do your homework and comparison shop MBA programs 'til you drop. There's no shortage of business school rankings to help you choose the program that's right for you. Where to start?
When it comes to the issue of dollars and cents, look no further than the Forbes Best Business Schools 2007 survey, which ranks business schools based on return on investment (compensation five years after graduation minus tuition and the forgone salary during school).
By the Business School Numbers
Out of Forbes' list of the top 56 U.S. business schools (all two-year programs), total tuition costs ranged from $23,000 to $90,000. The return on investment for graduates of these schools ranged from $2,000 (the 56th-ranked school) to $115,000 (the top-ranked school). Incidentally, the school that gave the highest return on investment was not the school with the highest tuition. You don't always get what you pay for.
If the concept of return on investment is too nebulous, consider the more concrete notion of salary. Before their MBA program, students were pulling in $23,000 to $75,000. After completing their business education, their salaries ranged between $72,000 and $200,000.
Of course, none of these MBAs are seeing their money right away. Business school is an investment in the truest sense of the word. Forbes reports that it took business school grads between 3.0 and 4.9 years to break even. When it comes to business education, the rewards are high, but not immediate.
If you want a quicker (and potentially higher) return on investment, choose from the list of increasingly popular one-year foreign MBA programs. The top-ranked school on this list had a return on investment of $169,000, compared to $115,000 on the U.S. list. Keep in mind, though, that there are many other factors to be taken into consideration before deciding to live and study abroad for a year.
The costs of business school may be high, but the value is even greater. Are you ready to start calculating the return on your investment?
If you know you're going to be spending some serious money, you'd better do your homework and comparison shop MBA programs 'til you drop. There's no shortage of business school rankings to help you choose the program that's right for you. Where to start?
When it comes to the issue of dollars and cents, look no further than the Forbes Best Business Schools 2007 survey, which ranks business schools based on return on investment (compensation five years after graduation minus tuition and the forgone salary during school).
By the Business School Numbers
Out of Forbes' list of the top 56 U.S. business schools (all two-year programs), total tuition costs ranged from $23,000 to $90,000. The return on investment for graduates of these schools ranged from $2,000 (the 56th-ranked school) to $115,000 (the top-ranked school). Incidentally, the school that gave the highest return on investment was not the school with the highest tuition. You don't always get what you pay for.
If the concept of return on investment is too nebulous, consider the more concrete notion of salary. Before their MBA program, students were pulling in $23,000 to $75,000. After completing their business education, their salaries ranged between $72,000 and $200,000.
Of course, none of these MBAs are seeing their money right away. Business school is an investment in the truest sense of the word. Forbes reports that it took business school grads between 3.0 and 4.9 years to break even. When it comes to business education, the rewards are high, but not immediate.
If you want a quicker (and potentially higher) return on investment, choose from the list of increasingly popular one-year foreign MBA programs. The top-ranked school on this list had a return on investment of $169,000, compared to $115,000 on the U.S. list. Keep in mind, though, that there are many other factors to be taken into consideration before deciding to live and study abroad for a year.
The costs of business school may be high, but the value is even greater. Are you ready to start calculating the return on your investment?
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