Considering applying to MBA programs, but daunted by the cost? That’s not surprising: tuition for a two-year MBA program averages $60,000 and at some schools, like MIT's Sloan School of Management , can top $170,000 or more over two years. Even so, for many business students, earning an MBA is worth the cost.
That’s because, according to the Bureau of Labor Statistics, the salaries of MBA graduates are double those of non-MBA graduates in comparable positions and industries. For example, as of May 2023, operations managers earned a median salary of $101,280 ; for chief executives, median annual salaries surpassed $206,000.
For many MBA graduates, the future looks bright. But let's consider the realities.
When you consider the cost of tuition plus the opportunity cost in lost earnings, MBAs might seem even more costly. Additional expenses, such as housing, books, computers, and travel, aren't included. Investopedia suggests that business students can accumulate between $100,000 to $200,000 in debt and expenses in just over two years.
Read More: What is the ROI of an MBA Degree?
Note, however, that these numbers are for the highest ranked business schools, like Wharton and Stanford. MBA students at Stanford will pay, on average, a total cost of more than $260,000 for two years including budgeted living expenses; Wharton Business School estimated tuition and living costs for a two year MBA exceeds $250,000.
For many business students, there are ways to make an MBA degree less costly. Here are some ideas:
Read More: Best Online MBA Programs
While the MBA tuition may be the biggest detractor, many business students consider it a rewarding investment that leads to additional opportunities, professional satisfaction, and higher salaries—well worth the opportunity cost.
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