How Long Does it Take to Recover Your Typical MBA Cost?
‘’Is an MBA worth it?’’ This is a common question asked by many university graduates on a mission to acquire the core business skills needed to climb up the career ladder. Although ‘the higher the risk, the higher the reward’ saying is more of a gambling mantra, its core meaning still seems to seep into many aspects of life, especially when determining how long it takes to recover a typical MBA cost.
Undoubtedly, the MBA has long been regarded as the entry ticket to the world of management. It is one career route that is packed with all sorts of potential. Especially when undertaken at prestigious universities like the Hult International Business School, where students are offered added career flexibility, enhancement, and acceleration in an international business setting, be it Shanghai, San Francisco, Dubai or London. Nevertheless, it comes attached with a price tag not everyone can afford and more often than never, prospective students are eager to know ‘if’ and ‘when’ it will all pay off.
Certainly, there is no question about ‘if’ an MBA pays off, but ‘when’ it will pay is a completely different ball game – a question which can only be thoroughly answered by analyzing the costs, benefits, shortcomings and job prospects.
How Much Does an MBA Cost?
Before delving into the diverse rewards and their accompanying timestamps, it is only logical to understand the costs involved with an MBA course. In a traditional sense, securing a full-time MBA can be quite pricey, but nevertheless, still worth it. Annual MBA tuition fees at top-ranking business schools range from $50,000 to $70,000.
It is a lot easier on the pocket when it comes to public schools of course, most especially at in-state students. According to U.S News Data, the average tuition falls somewhere along the lines of $42000 annually in the 10 highest ranked public business schools. That is still considerably more than the cost of a typical degree. Although easy on the pocket, public schools do not always offer the international exposure of the top ranking schools.
It also has to be taken into consideration that there is a range of scholarships as well as financial aid made available for prospective and current students. Though this cuts down the cost greatly, it is a highly competitive field and the number of available scholarships is in no way equivalent to the number of students that need financial aid. This leads us back to the fact that acquiring an MBA is still quite an expensive venture, regardless of what route is taken.
How Long Does it Take to Recover the Cost?
This is quite relative since there are many reasons for studying for an MBA as well as a number of factors that come into play. Studies have shown that four years or more is the most common time frame, but the one sure way to get a personal estimate it is to calculate it based on individual input.
The journey to getting a more personalized estimate starts with a current salary figure. In addition to this, the full cost of the fees and its duration should be stated. With these two figures, the opportunity cost can be derived. This is the amount of pay that will be forgone while studying in addition to the total cost of the program.
Since most business schools and web sources project post-MBA salaries, it should not be a problem getting a hold of that for the next step. With that figure, any student can calculate how long it would take to pay back the amount reflected in the opportunity cost. That is the surest way to figure out the period of time it takes to recover your typical MBA cost.
Is an MBA Worth it?
As much as salary increase is a solid reward for work well done and money well spent, it is just one aspect that MBA graduates stand to gain. There are many generic skills and experiences that enrich the lives of every MBA holder. A good degree can catapult personal growth, knowledge and skill acquirement as well as added job security.
According to a survey carried out by GMAC, the majority of MBA graduates benefited greatly from the overall experience of attaining their degree. There are a number of lifestyle benefits that make this an overall sensible path to follow. As much as the idea of building a solid network, achieving career advancement, or increasing net worth is the end goal, there is a whole lot to be picked up along the way that falls outside of all this.
The benefits of an MBA are immense. Such a course offers up on the chance to take a career pause and really reflect on the journey itself. It is also a means to really align personal needs with career goals. All in all, a great MBA is totally worth it. It will leave students with a totally different professional outlook than they expected.