OMG! 67 Lakhs to Get MBA Degree?

Raghuram Sukumar Study in USA 16 Comments

I was fascinated by couple of comments for the article – New 1+1 Program from Oxford University

I strongly recommend you read the above link before reading this post.

cost of mba degree

Photo – signote

Comment from Mantravadi

First of all, we need to write even GMAT, I guess for that 1+1 program.

Second we need to get into oxford right? Which is difficult.

Third,  the tuition fee is very high and above all  its difficult to manage 2 programs with part-time job

Comment from Manas

Not a joke!!! 67 lacs rs….not possible for a middle class family….

Reaction

My reaction to above comments was mixed.

I wasn’t sure, I have to criticize them or  educate them about value of Prestigious MBA.

But, one thing is clear, it not just those 2 comments, there will be several other students thinking the same – OMG – 67 Lakhs for  MBA is not possible.

So, I decided to write this post about value of attending top business schools in the world.

Top Cost of MBA Degree

Lets look at the total cost of MBA degree from Top Business schools in the world.

  • University of Chicago – $109,272.00
  • Harvard Business School – $121,220.00
  • Duke University – $104,304.00
  • Stanford Graduate School of Business – $113,820.00
  • University of Oxford – $63,898.00 (1 year)

In addition to above tuition fees, add the cost of living.

Salary for Top Business School Graduates

  • University of Chicago
    • Mean base salary: $113,220.00
    • Mean signing bonus: $27,680.00
  • Harvard Business School 
    • Mean base salary: $121,785.00
    • Mean signing bonus: $26,216.00
    • Mean other guaranteed compensation: $62,568.00

Forbes – 2009 Article

The Stanford class of 2004–the class now five years out–had a median salary of $82,000 before entering school, which tied with Harvard for the highest of any M.B.A. program. So the typical student made a $235,000 investment, measured by adding two years of forgone salary to the cost of tuition. That’s a hefty outlay, but it has paid off for most Stanford grads, as their median salary five years after graduation has jumped to $225,000, tops among all U.S. schools. We figure that the typical cumulative gain for this class of Stanford alumni was $85,000.

Top Business Schools

I’m still smiling reading the above 2 comments. It’s very tough to work part-time jobs when you are attending Top MBA programs.

People don’t go to Harvard and Stanford Business schools to work part-time jobs while in MBA program. If you are taking full-time MBA, you will realize, its not walk in the park.

Read the book Beyond MBA Hype to get better understanding about life of a student in Top Business school.

Degrees of Separation

You will be able to reach anyone in the world within 6 degrees of separation.

Recent study shows Facebook have reduced that to less than 5.

I believe if you studying top business schools, you will be able to reach other top folks in the works within 3.

For example, Let me see how I can reach President Obama within 6 Degree.

  • I – My director – His Director – VP of the Company – CEO – President Obama

If you were to be graduate from Top Business school, your degree of separation to President Obama will look like

  • You (VP of some company) – CEO –  President Obama (or)
  • You (CEO) – President Obama
  • President Obama ( Harvard Law School)

Hope, this clears up the value of attending Top Business schools in the world. If you want greater influence  in the society and  have less degrees of separation, then you must be willing to pay the price.

Comments

I know several friends, who came to US for MS, worked for few years and went to attend Top Business schools. Your exposure might be limited now, but US education will open up your thoughts.

Now, do you think its worth paying hefty among to get top  MBA?

Comments

  1. wow!! I nvr expected a such an explanation… its information thats power…and that power costs …

  2. I totally agree with HSB in this, MBA is a big deal and its not just something you do without full time focus and commitment to it.

    HSB I have a question as I trust your opinion, I am currently pursuing a career in process engineering and I am applying for master of chemical engineering in University of Texas at Austin or University of Houston and currently studying for GRE to finish application.
    But now I am thinking of immigration and I was doubting between opportunities in USA and Australia, I decided to apply to Australian Top Universities as well; University of Melbourne, UNSW and University of Western Australia. But I need your help to tell me which country is best suited for immigration after earning a masters degree. I’ve been following your blogs! keep it up!

    1. well Texas @austin is the best … 2 me , u hav lot of oil industries , wr u hav good opportunities to meet ur carrier goals 🙂

  3. Right approach towards career.. Thanks for motivating us, i can hardly see such approach. Every one is just talking about expense, but we never realize this a INVESTMENT…

  4. Hi hsb
    I have been following your blog since last 4 months
    And in my first comment I would say that all my paeans are less for the help
    you are providing. Or else people like me could easily have been trapped by
    the consultancy people

    But I have a sugestion- Analogous to this post if you could post some more
    matter on gmat. Or please suggest a blog similar to hsb , which
    can give good updates on mba admission.

  5. all right!!! very good explanation…. could you also tell me the means for raising 67 lakhs??

  6. Dear HSB,

    Thanks for the explanation however I would like to inform that there are pretty good business schools with little less investment eg University of Cambridge, Manchester, Indian School of Business, National University of Singapore, Nanyang, Ceibs, Hong Kong UST Business School and in USA if you can compromise a little on the ranking you can get Michigan State university, George Washington, Purdue and many more. All these business schools aren’t cheap though however charge much low as compared to Stanford, Harvard, Booth, Stern etc

  7. hello,
    great explanation hsb.I ve been trying to explain this to my parents 😛 since long….Btw I guess gre is also accepted on the same lines as a gmat score in most prestigious b-schools, isn’t it? I guess the gre/gmat score is not a major entrance criterion,is it? especially in hbs?

  8. one thing i dont understand is all this figures i see – $675,000 to $850,000 ??? Where would this come from?? Please we should be very carefull about what figures we post because this will either deceit people or make them sorry for themselves one day.
    The Truth Please,still we do not believe this…………. – $675,000 to $850,000 from Top MBA grads ,not True,unless u are moving to Saudi Arabia or Qatar….i think

  9. Wis … HSB gives some more good analytic s …

    its not just highest mba degree cost vs highest salary’s a MBA’s can earn ,
    trs a loooooot more…..
    what is the average school costs,
    also since most ppl come to MBA from work ,

    its also important to consider the salary foregone in
    two yr of mba+ cost of MBA
    vs
    the gain by MBA

    then we can figure out no of yrs for being even ..
    Most programs have the pay back period at 4-5yrs!!

    much better information is given on business week rankings ,
    http://www.businessweek.com/interactive_reports/bs_2010_US_FTMBA_TAB_1111.html

    BHARATH
    MBA-UTD

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