To MBA or not to MBA
Masters degrees cost an arm and a leg, and even with scholarships they take a lot of time. I saw a post on linkedin today about how a lot of colleges are investing on their online programs because the in person MBA does not fit most people's lifestyles. Not to mention, millennials aren't buying homes (I seriously see an article about this everyday) and this can be tied to the fact that they are sitting under massive debt.
Is the MBA worth it? Also, what do you think about students loans?
It really depends on the school you get into and the amount of financial aid you get. I wouldn't want to get an MBA from a bottom ranked program with 0 financial aid. While law schools are giving out tons of financial aid, a lot of the mba programs that I've seen only do merit based aid, not need based. The less loans the better, especially for grad school.
I agree. But it is a bit different since you practically need a JD to practice law but an MBA is seen as more of an investment in one's self- although it could be necessary as well. Some people feel quality of education is not the same online too
An MBA can be worth it if you want to change careers or locations, there are a lot of factors to consider: What schools can you get in to? What job do you want on the other side of b-school? Can you (reasonably) make that jump without an MBA? Does your desired industry/company recruit at that school? If you're at a school without a big banking alumni network and you're not one of the two IB hires your school produces, what are the likely career outcomes? Will you rack up $200K of debt and get a job with a starting salary of $80K?
Not all student debt is created equal: $200K of debt is completely different with all-in comp of $200K vs. $100K. As far as the investments in online programs, universities are doing non-traditional things through Continuing Education/Professional Studies programs that provide lower quality education in exchange for lower cost and more flexibility. Online offerings cost less to provide, so they are more profitable for schools than in-person, but the target student is not somebody looking to get into banking or consulting. A lot of those programs, especially the certificate (non-degree awarding) programs, are honey pots to fill university coffers. Students should do their research.
Right a lot of things to consider. Many Ivy Leagues seem to be shying away from this. I think it ruins the appearance of exclusivity for a lot of them. Online school is usually pricier for students as well because they charge all students out of state tuition. I am excited to see what changes come
Would an employer treat someone with an online MBA the same as someone with an in person brick and mortar experience? Or does it all come down to the prestige of the schools giving the degree?
thats precisely what I am wondering but most people have told me that brick and mortar, at least for now, is considered superior. I think it also adds a sense of exclusivity that ivy leagues and prestigious schools do not want to give up.
That seems right, but keep in mind that brick and mortar is not seen as superior because the education is just inherently better. The regular MBA professors teach the online courses as well, so the reason it's considered superior is that it is harder to get into a full-time program than a part-time or online program.
If we're being honest, the classroom education of a top MBA is not all that different from any state school. The professors might be better, but a lot of universities use the HBS cases and use the same textbooks, so what you are paying for at HSW is the signal to employers that you are a highly capable potential employee. The network and the stamp of approval from an exclusive institution is why you pay $200K and leave your job for two years.
Should be in the BSCH forum, but I digress.
Anytime I think of this question, I turn to CompBanker's story on an MBA and really pick apart the reasons as to why one should attain an MBA.
Are they unhappy with their current field and want to transition/lateral? Sure, it makes sense.
Do they want Post-MBA positions at a PE firm with no prior PE experience? Sure, it makes sense BUT will be hard.
Are they doing it PT and getting it funded partially by their employer or doing FT and hoping to get massive recruiting?
So many variables come into play with this decision that just looking at the debt aspect seems a bit narrow minded in my opinion. When making this decision, I guess it would be best to figure out whether or not the opportunity cost is worth it, where they want to take their career, and possibly reach out to alumni of that B-School.
Also, MBA business schools">M7 schools offer a lot of financial aid and scholarships should you perform well from my reading of the BSCH forum. In the high finance field, bank your bonuses and try to cover 1 year of the cost and work hard to get scholarships for the 2nd year and this could reduce the debt variable.
Anyways, analytical rant over.
Moved it over to the Business school forum. Thanks!
Definitely get that it is narrow minded to only consider the amount because it could very well be an investment in yourself that will pay off. This was just asked in a general way to see for how it plays out for the majority. I work in VC and I really do not see it as necessary for me unless I went to a program with excellent coverage on it like the one at Stanford. My current school really would not do anything for me if I went to them for an MBA. I have also considered the masters of finance but I am pretty sure I decided against that one.
Thanks for doing that!
MSF is good for those who were/are non-targets like myself who want to re-brand themselves or "delay" graduation by getting another shot at Wall Street recruiting. Before I was offered my current position, I was heavily debating an MSF.
MBA's that are a continuation of your undergrad are 9/10 always a poor investment unless you're from an awesome school like H/S/W as you mentioned above with the Stanford comment.
From reading your post's and getting your background, I'd say you would be fine without an MBA for a little while. You got a good career ahead of you.
Cheers and best of luck!
MBAs should really be pursued for the network you get. Meaning, if you go to a MBA business schools">M7, that's worth its weight if you're trying to get into banking; whereas, some random school in PA probably isn't worth the cost.
Most people believe an MBA to be the golden ticket, but think, will you still have to network after to get the job you want? If so, just start the networking now.
On student loans, definitely out of control. Cost of education has compounded more than anything else over the ~20 years (I think, don't have the stats). The real problem is, people get "fake" degrees, get low paying jobs, don't have budgets and spend on things they can't afford (trips, dinners, clothes). Who is at fault, pretty much everyone.
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