An uneven jobs market and rising total study costs at top schools are prompting prospective MBA students to think harder about the six-figure outlay, even as applications for the degree rose 2 per cent globally last year.
Financial Times data shows that average MBA tuition fees are about $107,000 today, down roughly 24 per cent from a decade ago when adjusted for inflation. Salaries three years after completing the programme average about $161,000, roughly 13 per cent lower in real terms over the period, suggesting the degree’s financial return has strengthened.
However, overall MBA costs including living expenses at several top US schools climbed by 3-8 per cent last year, with increases at Columbia, Stanford, Wharton, NYU Stern and Berkeley Haas pushing the total two-year outlay well above $250,000 at some of the most selective programmes.
The share of candidates ranking expected returns among their top three priorities when choosing a programme rose from 38 to 42 per cent last year, according to the Graduate Management Admission Council, which runs the GMAT aptitude test.
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