An article published last month on TOPMBA.com deals with the cost of an MBA degree at a top program, and the debt that graduates are left with.
“The average tuition fee last year for top-25 US business schools was US$118,468 – 81% higher than in 2006, according to data from The Financial Times. And that doesn’t include living and travel expenses, and forgone earnings for the duration of the course, generally two years. This has led to students taking on more debt, although the burden depends largely on the business school they attend. Among the 86 MBA programs ranked by US News, last year graduates owed an average of around US$55,000. Among the 10 schools where graduates borrowed the most, that average figure was US$107,000. MIT Sloan, where half of MBAs last year took on debt, topped the list. On average Sloan MBAs owed about $122,000. At the other end of the spectrum, MBAs at University of Texas – Dallas owed just $7,000.
However, the rising cost of an MBA has not dented demand at top business schools. Applications have risen in recent years, even though overall US MBA demand is waning. For many MBAs, ROI is a key consideration. According to data from QS, on average, graduates of top North American schools achieve full ROI less than four years after earning their degree. Over 20 years, this is worth US$2.6 million. The quickest returns are those at schools with shorter degrees, such as in Europe, where MBAs are typically around 12 months in length. According to Forbes, at US$171,000, the five-year ROI at INSEAD is the highest of any MBA program in the world, and nearly double that of top US schools.”
If you are considering applying for top MBA programs and want to know more about the cost and ROI of an MBA degree, feel free to use two new online calcultors on ARINGO site – MBA Cost Calculator and MBA ROI Calculator.