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It's a bubble waiting to burst. Hopefully the fallout isn't as severe as the housing crisis in 2008, but student loan debt is about $1.3 trillion (2nd only to mortgage debt of $8.3 trillion). Universities jack up tuition. Students take on more debt. But in the end, someone's got to pay for it, and if young folks these days are facing anemic job prospects, you're faced with yet another (hopefully much smaller) 2008 style crisis with loan defaults.
MBA programs are just part of that wave. MBA tuition increases have been skyrocketing (they've gone up 3x in 15 years on average it seems), but wage and job growth remain flat - the post-MBA nominal salaries/comp aren't much different than 15-20 years ago, yet the cost of an MBA has gone up 3x, and the pre-MBA salaries now are much higher than 15-20 years ago (back then, most incoming MBAs were at $30-40K/yr, and even IB/PE folks had total comp of under $100K - now most folks are at $70-150K coming into b-school).
Factor in that fewer internationals are going to be interested in working/studying in the US given the current political climate and immigration issues, and you have what amounts to a potential shakeup.
This will impact top schools (but they won't go away), but more mid-tier and lower tier programs will likely shutter. Think of it like real estate: the top schools are like the old established neighborhoods, and the mid to lower tier schools as the newly developed suburbs.
Again this isn't just MBA programs, but I think you'll see some fallout with universities as a whole.
It's a real shame because whether it's b-school, med, law, etc there is value in the education. And with undergraduate education - it's one of those things where it's now so expensive to go, yet even more expensive NOT to go (shutting yourself out of so many opportunities without a college degree).
There needs to be some serious reform, like so much of our institutions and infrastructure.
There has been a decline in MBA applications for a while for these bubble programs. Many of them are situated in areas where there aren't enough working professionals to attend PT in person.
They will shift the focus to specialized masters as this allows them to get current UG's into the programs. You'll also still see mid career people doing 1 year, specialized programs.
ROI for a two year MBA at one of these lower ranked programs just isn't there. More will follow suit.
Just read the P&Q article. Comical.
What is Wisconsin's value proposition? In order to attend on campus you have to make a brutual commute or take two years off. UW isn't routinely placing people into banking. Anyone quitting a F500 job will see minimal salary increase from their MBA. Networking will be minimal as well.
Alumni are short sighted. If Wisconsin wants to keep an MBA going, set up a remote classroom in Milwaukee and Chicago and call it a day. Internationals are focusing on STEM programs or staying home. These lower ranked programs can only survive in a major metro with PT and at night offerings. Only way the ROI makes sense.
I get it. Your entire worldview seems to focus on Finance and Consulting as the only possible use for an MBA despite Wisconsin's high placement in Marketing roles.
There's a lot of desire to get an MBA from a fairly prestigious school to break into Management without breaking the bank. Wisconsin offers this in spades. In my current career path, it would take a decade or longer to get anywhere near I can accomplish through a BM track in 5 years, with a much higher probability of success in achieving my long-term goals, and not have to move around from company to company like a hot potato in order to advance.
Not everyone lands an F500 company out of Undergrad. Many dedicated and very smart people work in smaller and midsize firms, but there exists a glass ceiling to break into larger companies that an MBA helps achieve.
Just because a program doesn't have value for your needs, doesn't necessarily mean it doesn't fill a desirable niche...
This obsession over rankings and using GMAT and undergrad GPA (vs career success pre MBA) as a barometer of candidates worth is the true bubble. Its a terrible metric in evaluating whether a person would be qualified long-term to lead teams in large companies. I'm glad Wisconsin isn't as selective as Kellogg, as someone with a less desirable background but has proven themselves in work can have the same opportunity and shot at landing prime leadership roles.
I’m so fucking pissed. I was planning on getting a Wisconsin MBA. And then a JD at Penn State
"Come for our JD and stay for our showers ;)"
Just ask SANDUSKY about it...