The cost of B-school - a tough pill to swallow!

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southbaynic: Junior | Next Rank: 30 Posts; Posts: 28; Joined: Sat Jun 26, 2010 4:48 pm; Thanked: 2 times

by southbaynic » Mon Jun 28, 2010 7:51 am

Is anyone else having a hard time justifying the cost of an MBA? I really want to go - I think it would be a great thing for me personally and professionally. However, it will wipe out all of my non-retirement account savings and give me $100k in debt on top of that. I am making close to 6 figures already, so the opportunity cost is high and it's not like the ROI is going to be great (but I don't want to stay in this field, which is one of the reasons I want to go).

Given that, I'm only considering top 15, full-time programs so I can get the most out it. But still, the thought of starting from scratch after working hard to save money for the past 6 years makes me a little queasy. Anyone else feel like this?

Source: Beat The GMAT — Research MBA Programs | Mon Jun 28, 2010 7:51 am

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beatthegmat: Site Admin; Posts: 6778; Joined: Mon Feb 13, 2006 8:30 amFollowed by: 994 members; Location: Los Angeles, CA; Thanked: 1249 times

by beatthegmat » Tue Jun 29, 2010 9:33 am

Business School is definitely not for everyone--but if you do go, the only way it makes sense is by taking a long-term view of your career. Agreed, the cost is pretty substantial, but the knowledge/network/pedigree you gain could make you a better business person in the future as well as help you earn more.

I read a study a while back (sorry, lost the source--I think it was a RIT study) where two researchers concluded that getting an MBA is like earning an additional $500,000, post tax. And that was just earning the degree, not factoring in quality of school, etc.

Try to see how you feel when you factor in long-term gains! Good luck!

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southbaynic: Junior | Next Rank: 30 Posts; Posts: 28; Joined: Sat Jun 26, 2010 4:48 pm; Thanked: 2 times

by southbaynic » Tue Jun 29, 2010 9:48 am

Thanks for the perspective. I still think it's a good choice for me, for reasons other than financial, but it's just getting over that initial mental hurdle of accumulating so much debt that's hard!

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beatthegmat: Site Admin; Posts: 6778; Joined: Mon Feb 13, 2006 8:30 amFollowed by: 994 members; Location: Los Angeles, CA; Thanked: 1249 times

by beatthegmat » Tue Jun 29, 2010 9:49 am

Yeah, I would by crying too while writing those checks.

But I've never heard any MBA graduate look back and say it wasn't worth the money.

money9111: Legendary Member; Posts: 2109; Joined: Sun Apr 19, 2009 10:25 pmFollowed by: 79 members; Location: New Jersey; Thanked: 109 times; GMAT Score:640

by money9111 » Tue Jun 29, 2010 9:43 pm

wish I made 6 figures pre-business school

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McKagan13: Junior | Next Rank: 30 Posts; Posts: 16; Joined: Sat Nov 07, 2009 9:38 am; Thanked: 1 times

by McKagan13 » Thu Jul 01, 2010 3:36 pm

I share your same fears, but like you am trying to switch careers. I currently make just under six figs, and will be tossing that aside to pursue a fulltime MBA this fall. I don't want to reiterate what was said above, but I used similar points to justify my choice. Additionally, $ aside, my goal is to be the best possible business leader I can be. I feel at this juncture, an MBA is one of the best options to propel me to my goal. Best of luck.

erdehoff: Junior | Next Rank: 30 Posts; Posts: 16; Joined: Sun Jul 18, 2010 9:16 am; Thanked: 1 times

by erdehoff » Tue Oct 05, 2010 8:03 pm

I've also been wrestling with the cost -- I've been a (low-paid) journalist for eight years, have no non-retirement savings to speak of and am looking to change careers. After considering the cost-benefit ratio very carefully for several months, I've decided it's worth doing, because income growth in my current field is dismal at best (I took a $16,000 pay cut when I last changed jobs, and while the change was a good one, that was a sizable enough hit that I'm on a pretty tight budget these days).

Still, I hope I qualify for some fellowships! Every little bit helps.

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