The sticker shock of an MBA cause many to rethink pursuing the graduate program. While the MBA has been an esteemed degree for decades, skyrocketing tuitions and the recessive economy have people questioning whether the degree is worth investing their time and hard-earned cash.
U.S. News and World Report recently released their 2015 Best Business Schools report displaying some startling numbers. Harvard University ranked highest for tuition and fees coming in at $66,348 per year, while Brigham Young University was the most affordable with a tuition of $22,450.
Brigham Young’s tuition might be less than Harvard’s, but it is still a serious chunk of change. There’s no way around it: if you want to enroll in an MBA program, you’re going to have to pay up.
However, those hard costs become less significant when considering the potential returns. MBA graduates enjoy significantly higher salaries as they advance in their careers, something which should soften the blow of tuition price. Over time, the program will essentially pay for itself.
Skeptical? Payscale reviewed four common MBA paths - finance, marketing, technology management, and human resources - comparing costs and benefits of pursuing the degree (see infographic below.) The mid-career median pay for MBA graduates ranged from $73, 300 for those in human resources to $120,000 for those in finance.
That’s only the tip of the MBA-payoff iceberg. An MBA promises significant wage growth over time, up to 108 percent between starting and mid-salary. Of all the data points, however, the lifetime earning is the most compelling. According to Payscale, the lifetime earnings of MBA graduates on those four career paths range from about $2 million to $3.2 million dollars. By comparison, MBA grads can expect an estimated 20% increase in lifetime earnings over Bachelor’s degree holders, according to both U.S. Census Bureau statistics and the more recentCollege Payoff Report.
The benefits of an MBA program don’t end with dollars and cents. Beyond the monetary gains, MBA graduates often enjoy higher rates of job satisfaction. A whopping 76 percent of MBA grads in the field of Technology Management reported high levels of job satisfaction, Payscale reported.
If you’re not happy simply executing someone else’s vision and a want to be the one calling the shots, an MBA is often your ticket into a high-level manager position. It is the gateway to achieving your ultimate professional goal and highest earning potential. A fulfilling career? Now that’s priceless.
So if you’re concerned about the cost of an MBA and the opportunity cost of its achievement, don’t immediately dismiss the degree. Take a look at the data below and carefully consider the long-term payoff. You might be surprised by how high the return on your business school investment could be.
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