Cost of MBA
Getting an MBA degree is expensive. The average cost for a traditional two year MBA is between $80,000 and $130,000. In some cases, the cost of an MBA degree is two to four times the average yearly salary. Still, the general consensus among students is that MBA is worth the investment. Some students make the mistake of just looking at the tuition fees for estimating the cost of their MBA. In addition to tuition fees, there are several other costs that you must consider. Below is a list of all the costs that you should include in estimating the cost of an MBA degree:- Tuition fees: Tuition costs vary depending upon the graduate school and the program. The more prestigious the institution, the more expensive the tuition. It is important to remember that the brand name of your MBA school is very important both for the quality of education that you will receive and how your value will be perceived by potential employers. An MBA from an unknown or less reputable school could result in high drop in the benefits of your MBA.
- Books, supplies and equipment: You will need to buy books and study related supplies for every course. Books are expensive but you can save some money by purchasing them second hand from seniors or from the internet. You must, however, make sure that you are not buying outdated books. You should also account for extra-curricular activities and fees for participating in various student organizations and groups. Purchasing a laptop is also recommended for convenience and flexibility. Laptops are now much cheaper than a few years ago. A decent laptop is a big upfront investment but it can help you a lot during your MBA and beyond.
- Relocation and living expenses: If you are attending school in a different state or in a different country, you must include relocation costs in your cost estimate. Examples are travel tickets, lodging on campus or an apartment near to your school, etc.
- Travel costs: No matter where your graduate school is, you will end up incurring some travel costs on regular basis. Examples are public transportation (subway, train, bus), and gas and parking if you use a car for transportation.
- Salary loss: If you are enrolled in a full time MBA program, you will most likely not be able to work at all. Even if you are enrolled in a part time program, you will probably still need to take some time off from work. In both cases, you will be forgoing the salary that you would have earned if you were not enrolled in MBA.
- Long term costs: In most cases, students will end up with student debt after MBA. As such, you must account for long term costs of repayment of student loans with interest.
