That’s the average debt load carried by NYU Stern’s class of 2012. And that doesn’t even count cost of living (let alone two years of lost wages).
This week, US News and World Report published data on student debt (though readers of PoetsandQuants got these numbers four months ago). And it’s bound to make some MBA applicants nervous. According to the results, a 2012 graduate from a top 100 business school should expect to be $49,619 in debt by graduation. Of course, that average nearly doubles to $97,154 for students who attend the ten schools with the highest debt burden. Here is the listing of the schools with the highest student debt loads after graduation:
|School||Average Debt||Average Starting Base Salary After Graduation (Excluding Bonus)||US News Ranking|
So what are the debt loads of other top schools? According to US News and World Report, Stanford 2012 graduates incurred $79,049 in debt, while Harvard students came in at $70,731. Booth graduates left with a $72,959 tab, while California-Berkeley (Haas) came in at $63,652. Carnegie Mellon just missed the top 10 with graduate debt load at $88,156.
Source: US News and World Report
What Recruiters And CEOs Really Think About The Value Of An MBA
“To get an MBA or not to get an MBA…That is the question.”
Thankfully, Hamlet never took the GMAT. He never could’ve written a succinct essay, let alone chosen a specific school. Still, the questions that a modern Hamlet would’ve asked are the same ones posed by aspirants and applicants every day. Is it worth giving up two (or more) years of my life for this? Will this degree really help me get a better job? How soon will my MBA pay off?
You may not have the answers, but the people who may someday hire you do. Business Insider recently interviewed a variety of leaders, including CEOs, recruiters, and entrepreneurs. The question: Is an MBA really worth it?
While none of these leaders discouraged readers from pursuing an MBA, nearly everyone offered their own caveats. For example, Jonathan Guidi, president of HealthCare Recruiters International, emphasized that MBAs from top schools are the only ones that get attention: “I don’t think, from a hiring point of view, that anyone cares if you have a MBA from the University of Phoenix.” He adds that hiring managers care little if applicants earned MBAs from state or regional schools, just the top tier.
Entrepreneur Jay Bhatti, a Wharton MBA, outlines another blind spot inherent to MBA programs: “The MBA program is designed to teach people to look at prior data and patterns in order to identify future outcomes…In the real world, this just does not work when it comes to new markets or innovation.” Another Wharton MBA, Apu Gupta, believes that professionals who want to become entrepreneurs should learn by doing, rather than studying it in the classroom. Still, an MBA on a resume does grab Gupta’s attention: “…I look a lot more closely. I’m a lot harder on the candidate.”
However, an MBA does give graduates an advantage with some employers. Frank Rodriguez, who’s responsible for university recruiting at Johnson & Johnson, believes an MBA gives students “a broad business background,” particularly in the areas of leadership, collaboration, and working with other cultures. Christine Ricci, who oversees public relations and marketing for B.E. Smith, adds that, “An MBA or some advanced degree is almost a must-have right now…It’s expected now.” However, Ricci cautions candidates to “find the program that’s a good fit” to increase their value to employers.
Source: Business Insider