Master's Degrees....are they worth it????

[04diamond<3]

So I'm finishing up my degree in Business Administration (have about 2 years left because I'm working full time too)....And DH and I are looking at MBA's and it's going to cost about 30k!!!! Just wondering if it's worth it...I know of a few positions that I have my eye on that I could get just with a BA....but I know an MBA would be better....Is it worth it though? By the time I'm done my school debt will be around 60k...the companies I'm looking at though do have education reimbursement...so maybe? I'd love to know your thoughts....

 

[sonnyjane]

Ahhhhhhhhhhhhhh, a great question. First of all, whether or not you need a Master's totally depends on your degree, but since you already mentioned that you're looking at an MBA, I'll just go at it from that angle.

In my experience, with my friends that do work in business and finance, they all have a Master's. They never left school, they stayed in and just went from undergrad to grad school. I don't know one way or another if they would have gotten jobs with a Bachelor's since they didn't take the time to find out. They were told to assume that you need a Master's in those fields because they are so competitive and so they did without thinking. Do I agree that it's a dog-eat-dog world out there for most jobs and that a Master's looks way better on paper than a Bachelor's? YES. BUT......

I started with $90K of debt for my three Bachelor's degrees. I have it down to about $25K now but I have been AGGRESSIVELY paying it, and the minimum payments were I to only pay as little as possible were still about $800 - and interest rates just went up for new student loans! I would probably try my hand at getting a job with just a Bachelor's. If I applied and applied for hundreds of jobs and got not even so much as a callback, then I would certainly be inclined to go for the Master's, BUT, my ideal scenario would be to first get employment with a Bachelor's and even better would be if they put money toward continuing my education. I honestly do believe that candidates with MBA's will have a better chance of being hired, but if you can get a job without it, at least for now to make sure you're even happy doing it, then I'd wait and at least apply for those jobs.

 

[04diamond<3]

Thanks Sonnyjane, I always appreciate your feedback

I'm actually interviewing for some pretty good paying jobs right now and both companies have education reimbursement benefits...When looking for the types of jobs that I'd be interested in after an MBA, it seems that a BS in BA with about 10 yrs experience OR an MBA is what's required....When I look at the amount of time...a year and a half extra of school compared to 10 more years of work seems like a no brainer to me...but I guess the numbers for what that'd cost freaked me out a bit. I agree with what you said and because I do intend on being in the business field, I agree that getting the MBA would be the smartest option. Thanks again for your advice!

 

[sonnyjane]

Thanks Sonnyjane, I always appreciate your feedback

I'm actually interviewing for some pretty good paying jobs right now and both companies have education reimbursement benefits...When looking for the types of jobs that I'd be interested in after an MBA, it seems that a BS in BA with about 10 yrs experience OR an MBA is what's required....When I look at the amount of time...a year and a half extra of school compared to 10 more years of work seems like a no brainer to me...but I guess the numbers for what that'd cost freaked me out a bit. I agree with what you said and because I do intend on being in the business field, I agree that getting the MBA would be the smartest option. Thanks again for your advice!

Knowing that they place the equivalency at 10 years experience, then yes, I think it makes sense to go for the MBA. It will not only help your prospects of being hired, but it will really help your possibilities of advancement. For some reason when I read your original post, I skipped over the fact that you were still in school for 2 more years before getting your Bachelor's. I thought you were out and actively looking right now. In my mind it was a "do I go back to school, or do I apply for jobs" scenario. If you're still IN school, I'd imagine it's easier to stay the course and just knock it out now.

 

[SB621]

Really it will honestly depend on what job you are going for. Some jobs don't require it but it is an added bonus if you have it. I know for my job it isn't a requirement but it did make me stand out from other candidates. It also requires my company to pay me about 20% more. For me it was totally worth it to get my degree (took 2 years going year round part time).

Another thing you might want to look at is if your job or hopefully current job with pay for your masters degree. When I graduated college I worked as as admin (yes I had a Bachelors of Science) so the company would pay for my MBA. After that I owed them no additional time. I think I worked for them an additional 6 months then left for another position where I took a 60% pay increase.

I really recommend to look at your options. What is your dream job? Do others in that position have a similar degree or higher? Would the company pay for it or partial pay for it? Would you owe them anything if you did an EDU program through them? The vast majority of my friends all have some form of master's degreess. However except for the few who are college teachers and get their doctorate I don't see any of them really using it. I think my best friend has her MBA in European Poetry or perhaps it is Art. Interesting but not useful so I would highly recommend looking into a program if your career dictates it.

 

[04diamond<3]

Knowing that they place the equivalency at 10 years experience, then yes, I think it makes sense to go for the MBA. It will not only help your prospects of being hired, but it will really help your possibilities of advancement. For some reason when I read your original post, I skipped over the fact that you were still in school for 2 more years before getting your Bachelor's. I thought you were out and actively looking right now. In my mind it was a "do I go back to school, or do I apply for jobs" scenario. If you're still IN school, I'd imagine it's easier to stay the course and just knock it out now.

Yeah. that's what I'm thinking. I guess I panicked when I added everything up and came up with an extra 30k for it, but the more I think about it and talk about it with others, the more it seems it is worth it which is what my question was

Really it will honestly depend on what job you are going for. Some jobs don't require it but it is an added bonus if you have it. I know for my job it isn't a requirement but it did make me stand out from other candidates. It also requires my company to pay me about 20% more. For me it was totally worth it to get my degree (took 2 years going year round part time).

Another thing you might want to look at is if your job or hopefully current job with pay for your masters degree. When I graduated college I worked as as admin (yes I had a Bachelors of Science) so the company would pay for my MBA. After that I owed them no additional time. I think I worked for them an additional 6 months then left for another position where I took a 60% pay increase.

I really recommend to look at your options. What is your dream job? Do others in that position have a similar degree or higher? Would the company pay for it or partial pay for it? Would you owe them anything if you did an EDU program through them? The vast majority of my friends all have some form of master's degreess. However except for the few who are college teachers and get their doctorate I don't see any of them really using it. I think my best friend has her MBA in European Poetry or perhaps it is Art. Interesting but not useful so I would highly recommend looking into a program if your career dictates it.

I guess that is what I was wondering. The jobs I'm interviewing for pay double my last job because I got my state licenses and the previous place I worked at totally underpaid everyone! But...the type of jobs I am looking at (for when I'm done), are some sort of executive position in the health care field. There are two concentrations with the BS that I can choose, one being in HR and the other in management...Still haven't decided which one I'll end up doing...But I have some time and figure that once I start taking business courses that I'll be able to make a more informed decision. I'll be doing this all online too so that I can work full time. Even if where ever I end up wants experience and education, I have previous experience and getting more experience as well as theses degrees will help a lot. I'm a big fan of multi tasking Thanks for your questions...I hadn't thought about owing anything to a company...although I had read somewhere a while ago that some companies do require that you work for them for a certain amount of time after receiving whatever degrees...I guess I'll find that out once I'm hired (Lord willing soon!).

 

[MichelleCarmen]

So I'm finishing up my degree in Business Administration (have about 2 years left because I'm working full time too)....And DH and I are looking at MBA's and it's going to cost about 30k!!!! Just wondering if it's worth it...I know of a few positions that I have my eye on that I could get just with a BA....but I know an MBA would be better....Is it worth it though? By the time I'm done my school debt will be around 60k...the companies I'm looking at though do have education reimbursement...so maybe? I'd love to know your thoughts....

If you can find a company that has educational reimbursement, than that is a HUGE inventive. If you go out into the work field and then try and go back for your MA after years of not being in school, it can be extremely difficult to get back into the swing of things. Some might find it easy, but others, not so much so...

If I were you, I'd at least try applying for jobs that have educational reimbursement and immediately apply while concepts are fresh in your mind.

 

[mrscushion]

But...the type of jobs I am looking at (for when I'm done), are some sort of executive position in the health care field. There are two concentrations with the BS that I can choose, one being in HR and the other in management...Still haven't decided which one I'll end up doing...But I have some time and figure that once I start taking business courses that I'll be able to make a more informed decision.

Wanted to chime in on this. From my experience (10 yrs. in business & having an MBA myself), my advice would be that unless you're absolutely sure that you want to go into HR and are informed and gung-ho about that career choice, you should consider doing the general management track and perhaps take some HR-related courses. This will leave your options open. In my experience, once you've labeled yourself as an HR expert, it is hard to other business functions like marketing or operations. It is easier making the switch the other way; in fact, the best HR / people / training executives are ones who have been on the operating side of business previously. Particularly if you haven't taken business courses before, you should consider using the MBA to explore different subjects and become a business generalist.

 

[mrscushion]

I think my best friend has her MBA in European Poetry or perhaps it is Art. Interesting but not useful so I would highly recommend looking into a program if your career dictates it.

I hope she doesn't have an MBA (= master of business administration) in European Poetry! That would be a weird degree indeed.

 

[DogMomD]

Yeah, a subject that I know something about! (don't know much about diamonds)
If you can go ahead and get in a grad program it will be easier than going back after some time out. However, if you can find a job that will pay a portion of a grad degree then you might want to go that route, but get it in writing (how much they pay, whether there is a time limit to graduating, etc). But with so many people out there with a BA/BS having a grad degree will give you an edge.

But...the type of jobs I am looking at (for when I'm done), are some sort of executive position in the health care field. There are two concentrations with the BS that I can choose, one being in HR and the other in management...Still haven't decided which one I'll end up doing...But I have some time and figure that once I start taking business courses that I'll be able to make a more informed decision.

Wanted to chime in on this. From my experience (10 yrs. in business & having an MBA myself), my advice would be that unless you're absolutely sure that you want to go into HR and are informed and gung-ho about that career choice, you should consider doing the general management track and perhaps take some HR-related courses. This will leave your options open. In my experience, once you've labeled yourself as an HR expert, it is hard to other business functions like marketing or operations. It is easier making the switch the other way; in fact, the best HR / people / training executives are ones who have been on the operating side of business previously. Particularly if you haven't taken business courses before, you should consider using the MBA to explore different subjects and become a business generalist.

From what I understand most companies are outsourcing much of their HR functions since it is cheaper. The above poster is correct about it limiting you a bit in a career.

 

[yennyfire]

But...the type of jobs I am looking at (for when I'm done), are some sort of executive position in the health care field. There are two concentrations with the BS that I can choose, one being in HR and the other in management...Still haven't decided which one I'll end up doing...But I have some time and figure that once I start taking business courses that I'll be able to make a more informed decision.

Wanted to chime in on this. From my experience (10 yrs. in business & having an MBA myself), my advice would be that unless you're absolutely sure that you want to go into HR and are informed and gung-ho about that career choice, you should consider doing the general management track and perhaps take some HR-related courses. This will leave your options open. In my experience, once you've labeled yourself as an HR expert, it is hard to other business functions like marketing or operations. It is easier making the switch the other way; in fact, the best HR / people / training executives are ones who have been on the operating side of business previously. Particularly if you haven't taken business courses before, you should consider using the MBA to explore different subjects and become a business generalist.

I also agree with what Ms. Cushion said about going more general first and then moving towards HR if that's what interests you. I have a MS in Counseling and worked for several big companies in HR IT (PricewaterhouseCoopers, GE and EarthLink) and I can tell you that no one worked in Management without an advanced degree. You couldn't even get in the door without it (whether I agree with it or not, that's the way it was)

Like SB, I worked as an Admin. while I went to grad school and my company paid part of my educational expenses. I got my degree with no debt, which was a lovely way to start my career. I think if you can go that route, it's best of both worlds. Good luck!

 

[MrsWhitney]

I am an Assistant Director of MBA Admissions and Recruitment at a well-known U.S. Top-30 Business School. I strongly believe that they are becoming a necessity in most business positions (note: I have two masters from Ivy Leagues, and was a PhD student at Cambridge, but I do NOT have a MBA). Research indicates that, overall, they do lead to a higher salary average, a shorter path to promotion, and also provide intangible benefits such as networking. There are SO many types of program, full-time, evening, weekend, online, executive...and a number of top schools provide full-rides or large scholarships (in fact, nearly all students in full-time programs at our program get some form of a very large scholarship).

I probably cannot say too much more, but there are those that disagree on their effectiveness, but having a father with a MBA, and working in the field, I personally and professionally feel they are worth the time, and funds- if required.

 

[Tuckins1]

I am in education, so it's a little different than business, because teachers are required to continue their education in order to keep their teaching certification. I am currently working on a masters in school and community psych which will run me about $50,000!!! (Yipes!) I'm not sure if it's worth it, but it's worth it to me because it's what I want to do. Good luck to you!

 

[AprilBaby]

My son just got into two of the top MBA programs in the country. It's gonna cost $110,000. Both wanted several years of work experience. His company is going to pay half. Is it worth it? Heck yeah! His salary will double and he can work at some of the best companies in America! It seems a BS is becoming the new high school diploma and an advanced degree is what most places want. Now I hate to be sexist but it seems to be true. If your plan is to get a great job and then stop to raise a family, I wouldn't do it. Lots of women never go back to work even if they intended to. Just saying from my many many years experience.

 

[kgizo]

I think a lot of it depends on the school ranking and career placement office. If you go to a lower rated school with poor career placement it is hard to leverage that into a higher salary. All of the schools post graduate placement stats so look at the past few years history for the school you are interested.
Would you get it from the same school you got your BA from? If you do, my experience is that is often valued less. For whatever reason employers like to see different schools.
I have worked for large corporations where an MBA from a highly rated school gets you higher pay, and a MBA from an evening/local school is a prerequisite for certain jobs but does not get the pay premium. If you've narrowed down future potential employers try to find out if the have a MBA hire program where only specific schools get the pay premium.
Lastly, I echo the thoughts about starting as a generalist and focusing on HR on your second or third job job. I have a MBA and have worked in tech and biz strategy outsourcing HR. It happens a lot. That said, people with HR tech experience are highly sought after so I recommend you take those courses.
Good luck to you.

 

[princesss]

My son just got into two of the top MBA programs in the country. It's gonna cost $110,000. Both wanted several years of work experience. His company is going to pay half. Is it worth it? Heck yeah! His salary will double and he can work at some of the best companies in America! It seems a BS is becoming the new high school diploma and an advanced degree is what most places want. Now I hate to be sexist but it seems to be true. If your plan is to get a great job and then stop to raise a family, I wouldn't do it. Lots of women never go back to work even if they intended to. Just saying from my many many years experience.

Yep, my best friend just got into a top program and she's looking at $166k for her MBA. I think it's a great investment if you're really career-focused or if you want to go into an industry that requires specialization, however I think a generic MBA from a lower-ranked school isn't really worth it. If it's not from a top program the return on investment might not be terribly significant.

 

[04diamond<3]

My son just got into two of the top MBA programs in the country. It's gonna cost $110,000. Both wanted several years of work experience. His company is going to pay half. Is it worth it? Heck yeah! His salary will double and he can work at some of the best companies in America! It seems a BS is becoming the new high school diploma and an advanced degree is what most places want. Now I hate to be sexist but it seems to be true. If your plan is to get a great job and then stop to raise a family, I wouldn't do it. Lots of women never go back to work even if they intended to. Just saying from my many many years experience.

AprilBaby - I couldn't agree more!!! It breaks my heart that most of my friends (very very smart women), spent so much on their degrees and have given them up to be stay at home moms and they're still paying off their loans....I'm beyond blessed to have a DH that is so supportive. I am not at all being down on moms, I admire them and I think they have one of the most important roles in the world. My sister is actual a mother of 4, but is starting to go back to school next month! I'm SO excited for her. I also agree about the degrees changing in importance which is why I just had to finish my B.S.

 

[04diamond<3]

If you can find a company that has educational reimbursement, than that is a HUGE inventive. If you go out into the work field and then try and go back for your MA after years of not being in school, it can be extremely difficult to get back into the swing of things. Some might find it easy, but others, not so much so...

If I were you, I'd at least try applying for jobs that have educational reimbursement and immediately apply while concepts are fresh in your mind.

I agree MC, I would definitely continue till I was done.

Wanted to chime in on this. From my experience (10 yrs. in business & having an MBA myself), my advice would be that unless you're absolutely sure that you want to go into HR and are informed and gung-ho about that career choice, you should consider doing the general management track and perhaps take some HR-related courses. This will leave your options open. In my experience, once you've labeled yourself as an HR expert, it is hard to other business functions like marketing or operations. It is easier making the switch the other way; in fact, the best HR / people / training executives are ones who have been on the operating side of business previously. Particularly if you haven't taken business courses before, you should consider using the MBA to explore different subjects and become a business generalist.

I agree again, taking a concentration in HR would definitely limit my options. However, I do wonder...If for my BS, if I did the HR concentration and continued towards the MBA, would that be the same as not? Something to consider I guess.

Yeah, a subject that I know something about! (don't know much about diamonds)
If you can go ahead and get in a grad program it will be easier than going back after some time out. However, if you can find a job that will pay a portion of a grad degree then you might want to go that route, but get it in writing (how much they pay, whether there is a time limit to graduating, etc). But with so many people out there with a BA/BS having a grad degree will give you an edge.


From what I understand most companies are outsourcing much of their HR functions since it is cheaper. The above poster is correct about it limiting you a bit in a career.

I'm definitely hoping to land somewhere that will contribute to my degrees financially....Hopefully I'll find out soon

I also agree with what Ms. Cushion said about going more general first and then moving towards HR if that's what interests you. I have a MS in Counseling and worked for several big companies in HR IT (PricewaterhouseCoopers, GE and EarthLink) and I can tell you that no one worked in Management without an advanced degree. You couldn't even get in the door without it (whether I agree with it or not, that's the way it was)

Like SB, I worked as an Admin. while I went to grad school and my company paid part of my educational expenses. I got my degree with no debt, which was a lovely way to start my career. I think if you can go that route, it's best of both worlds. Good luck!

I hope so! Finding a company that'll pay for the whole thing would be awesome!!! It's looking more and more like I will be going the MBA route.

I am an Assistant Director of MBA Admissions and Recruitment at a well-known U.S. Top-30 Business School. I strongly believe that they are becoming a necessity in most business positions (note: I have two masters from Ivy Leagues, and was a PhD student at Cambridge, but I do NOT have a MBA). Research indicates that, overall, they do lead to a higher salary average, a shorter path to promotion, and also provide intangible benefits such as networking. There are SO many types of program, full-time, evening, weekend, online, executive...and a number of top schools provide full-rides or large scholarships (in fact, nearly all students in full-time programs at our program get some form of a very large scholarship).

I probably cannot say too much more, but there are those that disagree on their effectiveness, but having a father with a MBA, and working in the field, I personally and professionally feel they are worth the time, and funds- if required.

MW - I agree...After being in the work force, it's definitely evident that an advanced degree would be the smartest thing to do to stay ahead...so I'll do my best

I am in education, so it's a little different than business, because teachers are required to continue their education in order to keep their teaching certification. I am currently working on a masters in school and community psych which will run me about $50,000!!! (Yipes!) I'm not sure if it's worth it, but it's worth it to me because it's what I want to do. Good luck to you!

Very true Tuckins! It is what I'd like to do, and my wonderful DH is very supportive with what I want to do. And thank you

 

[Dreamer_D]

I can't speak to an MBA...

But in my honours psychology class for undergrads I present some stats from the Canadian government about salaries as a function of education. According to those stats, in Canada a Master's degree is worth about $20k per annum in salary, on average compared to the average salary of an individual with an undergraduate degree. That's pretty good in my opinion. I imagine it's similar in the US. So in general, my answer is "yes", a Master's degree is worth it.

 

[amc80]

The economy was pretty bad when I graduated (double major- BA in Economics and Political Science). My school offered a one year MA degree in Economics, so I decided to stay and do that. The entire degree was maybe $5k. My first job out of grad school paid me about 10% more than I would have made without the degree, so it paid for itself that first year (not taking into account the year of "lost" income, obviously). I'm glad I got it when I did because I can't imagine having to go back to school now.

 

[MustangGal]

I really wanted to go for an MBA a couple years ago, but in the end decided I didn't really need it for my career path (I'm in HR).

My company does have a great tuition reimbursement program, but after getting accepted to an MBA program and submitting the forms, I found out that the company didn't pay for graduate degrees. Something about being able to take tax write-offs for undergrad and not graduate. So if you are looking into that with a future job, make sure it would pay for the MBA.

 

[MsP]

I've heard many times that an MBA is only as good as the actual experience that backs it. I wouldn't do an MBA right from undergrad. I'd get some experience. Also, as others have mentioned MBA's seem to be like law degrees in that the credibility of the school MATTERS in terms of the worth of the degree.

If you can find a job that'll help pay for a part time program (some very reputable schools offer these) that seems ideal.

 

[madelise]

Just don't go to one of those private for-profit small schools that advertise on day-time TV and on the back of busses!

I know one too many masters degree holders that have way too much debt and no benefits.






Can you apply to those top-US schools? For MBA, it seems like the program really matters.
In our home, we're planning for my SO to apply for MBA programs after I'm done with my master's.
My master's degree doesn't matter which school I went to.
If you can swing it, go for it, girl!

 

[04diamond<3]

I can't speak to an MBA...

But in my honours psychology class for undergrads I present some stats from the Canadian government about salaries as a function of education. According to those stats, in Canada a Master's degree is worth about $20k per annum in salary, on average compared to the average salary of an individual with an undergraduate degree. That's pretty good in my opinion. I imagine it's similar in the US. So in general, my answer is "yes", a Master's degree is worth it.

Agreed...The more research I do, the more it seems that that will be the route to take.

The economy was pretty bad when I graduated (double major- BA in Economics and Political Science). My school offered a one year MA degree in Economics, so I decided to stay and do that. The entire degree was maybe $5k. My first job out of grad school paid me about 10% more than I would have made without the degree, so it paid for itself that first year (not taking into account the year of "lost" income, obviously). I'm glad I got it when I did because I can't imagine having to go back to school now.

Um....WOW!!! That's quite an affordable degree!!!

I really wanted to go for an MBA a couple years ago, but in the end decided I didn't really need it for my career path (I'm in HR).

My company does have a great tuition reimbursement program, but after getting accepted to an MBA program and submitting the forms, I found out that the company didn't pay for graduate degrees. Something about being able to take tax write-offs for undergrad and not graduate. So if you are looking into that with a future job, make sure it would pay for the MBA.

Hm...that'll have to be something to look into! Thanks for sharing that!

I've heard many times that an MBA is only as good as the actual experience that backs it. I wouldn't do an MBA right from undergrad. I'd get some experience. Also, as others have mentioned MBA's seem to be like law degrees in that the credibility of the school MATTERS in terms of the worth of the degree.

If you can find a job that'll help pay for a part time program (some very reputable schools offer these) that seems ideal.

I would absolutely love to find a place that'll pay for everything!!! The programs I'm looking into all require that you have about 3 years of post undergrad experience. I already have over 3 years of corporate work experience...I'm wondering if that'll be ok...we'll see.

Just don't go to one of those private for-profit small schools that advertise on day-time TV and on the back of busses!

I know one too many masters degree holders that have way too much debt and no benefits.
Can you apply to those top-US schools? For MBA, it seems like the program really matters.
In our home, we're planning for my SO to apply for MBA programs after I'm done with my master's.
My master's degree doesn't matter which school I went to.
If you can swing it, go for it, girl!

Oh my goodness!! I wouldn't do that! After reading a few articles today and yesterday on how important it is to employers to see that an MBA program was done at a school vs online...I'm not sure I'd want to...We'll see. I am finishing my BA online because I want to be able to pay my debt off as I go, but it seems pretty important to do the MBA at a reputable school....So we'll see what happens. I'm praying that I'll be able to get a high enough GPA...but if I can - I'M TOTALLY GOING FOR IT I'd love to know other's opinions on doing an MBA online vs not too...I'm absolutely open to doing it online because it'd fit my schedule better, but I also want to be able to do what's necessary for my career...We're still a few years out though.

Thank you all!!!

 

[madelise]

Dont do it online if you can. There's so much networking that you miss out on on campus. Nothing can compare to face-to-face interaction. ESP when you go to a top school.. The other students and profs there are the type of people you want to get to know. JUSTDOIT! Even if you don't feel your GPA is up to par. You never know til you apply. And apply far and wide. Cast a big fishnet. Go get em, girl!!

 

[04diamond<3]

Dont do it online if you can. There's so much networking that you miss out on on campus. Nothing can compare to face-to-face interaction. ESP when you go to a top school.. The other students and profs there are the type of people you want to get to know. JUSTDOIT! Even if you don't feel your GPA is up to par. You never know til you apply. And apply far and wide. Cast a big fishnet. Go get em, girl!!

Thank you doll. I'll do my best for sure!!! I've been getting better (grades wise) this past year I did gen eds and each semester I get better grades. It's SO much easier now that I know what I want to do. When I'm not focused on anything, it's hard for me to do well. I'd like to stay local, but there are some great schools around here. DH is a homebody and all our family is here. I looked at a few programs, and I especially like the executive fast track program that's a year long and I'd only have to go TWICE a week!!! So we'll see...

 

[tuckie]

I know that this is an older thread, but I'm happy to chime in and answer any questions that might be helpful.

I'm graduating in June with my MBA from an Ivy league bschool (and yes, all in I think it would cost on the order of $175k). I worked for 6 years post bachelors in consulting, so I was a relatively high-earner prior to my MBA. When I run the model on the return-on-investment for my tuition payments, it says that it's a bad investment. I couldn't disagree more. Let me break it down into a few categories if that is helpful:

Economics:
I'm sorted for my first job out of business school, and I'll make about 75% more than I did prior to my MBA. Living comfortably in a midsize city (of my choosing) I expect to pay off my MBA and Undergrad loans within 5 years. I'll be 30 at the time of graduation, so not everyone would chose to be in debt until 35, but this is fine by me. My calculations have my education being NPV positive in my second year out of business school.
Also, something to note is that all types of highly qualified minorities (women, ethnic minorities, lgbtq students, non-traditional applications) are often highly prized and that means scholarships. I'm personally paying 1/2 tuition and in my experience, about 40% of the women in my program received significant scholarships.

Professional Skills:
I've learned so much about how to be a business manager, that even if I went back to my old job I would be HIGHLY more effective and efficient. I would progress faster, and be more engaged in my work because of these new skills. I'm quicker at hard skills like finance, have a far better grasp of marketing and supply chain, and have REALLY grown in my leadership abilities.
The biggest part of an MBA, at least from a top school, is ACCESS to jobs that I could have only dreamed about before. My future employer would have thrown my CV in the trash can prior to my MBA. Now they are thrilled to have me on board. I can't tell you what this has done for my confidence as well - to see these firms that I would have just dreamed of working for actually recruiting and pursuing me.

Personal Development:
While in business school, I've learned to play two new sports, traveled to two new continents, become a better public speaker, and become a far braver woman. The biggest thing, however, is network. In these two years I have made lifelong friendships with people from dozens of countries (who will be significant business leaders) who have challenged me, supported me, and helped me dream really big. I can't wait to see what successes they will become. And I can't wait to ask them to hire me/hire them/invest with them/ask them to invest in me/etc as our careers progress. It's this stuff that is worth tens of thousands in my book - because it has made me happier, more confident, more open, and mostly just up for a lot of new challenges that will bring me personal and professional success.

The ROI model does a good job at predicting the economics of an MBA, but does a poor job of assessing value on the Professional Skills and Personal Development attributes - and I think these are the big ones.

Granted, not everyone has access to a top-tier MBA program. (for the record, I didn't go to a fancy undergrad, come from a rich family, or have other MBAs in my family, etc).

For those who are deeply interested in business and ready to take a big leap for a full-time program, I cannot recommend it more strongly.

That said, an MBA is not for everyone. When I was applying to schools, I drew an imaginary line on the school rankings and decided not to apply to any schools rated lower than this line. This wasn't out of snobbery, but instead out of a belief that I had more to gain from staying in my previous job, milking our HR's training and development curriculum, and taking some online or local classes than I did from quitting my job and diving headfirst into that specific program. Where this line lies would be different for all folks. As Kenny says, people vary.

My POV is that higher-ed is most valuable at the margins, that is the highest-cost/most-prestige versions and the lowest-cost/online/MOOC versions. Both have a different value prop, but its in the extremes that I think people can get the most bang for their buck. But I might be biased, I'm always looking for a good deal.

 

[anne_h]

In my case, yes. Although my situation is different from yours.

I had around 13 years' work experience and 8 in management when I started my MBA two years ago. I didn't want to stop working and earning income, so I did a part-time Executive format at a respected university (probably a mid-tier business school). The Executive format was more expensive but allowed me to keep my regular job.

After I graduated, I did a targeted job search and landed two good offers, both ~35% more than what I was making before. Certainly my existing management experience was my largest asset, but in both cases the employers stated the MBA was also a factor. The employer I ultimately chose mentioned they felt the MBA made me a stronger candidate for future promotions. (Only time will ultimately tell of course.)

But I will add that I agree with a lot of what the poster above me said... that one needs to also consider the less tangible benefits of doing an MBA. I gained some excellent connections, presentation skills, self-confidence and an ability to work insanely hard (ie: working a full-time job, taking classes & doing homework, all with 3 kids - not super recommended btw, lol). Not to mention I learned a lot. I am a better manager now. My business perspective and decision-making skills are more strategic. I would also be confident to start and run my own business if someday I decided to.

The totality of the financial and personal benefits made an MBA completely worth it in my case. I'm glad I did it. It was a lot of work but I achieved the results I was hoping for.

I guess one other decision for you is whether to do one now or later. Right now I believe the MBA courses are probably more relevant when one has some work experience from which to better understand context. I'm mentoring a young woman doing an MBA right after her undergrad. She has no work experience and says it's hard for her to understand how to apply everything in the 'real world'. But there are many considerations on the flip side too. I'll let others chime in on that.

Hope this helps. Keep us posted on your decision.

Anne