Harvard | Mr. Google Tech
GMAT 770, GPA 2.2
Stanford GSB | Mr. Blockchain
GMAT 760, GPA 3.9
Kenan-Flagler | Mr. Healthcare Provider
GMAT COVID19 Exemption, GPA 3.68
Kellogg | Ms. MBA For Social Impact
GMAT 720, GPA 3.9
Harvard | Mr. Low GPA Product Manager
GMAT 780, GPA 3.1
Chicago Booth | Mr. Controller & Critic
GMAT 750, GPA 6.61 / 7.00 (equivalent to 3.78 / 4.00)
Kellogg | Mr. PE Social Impact
GMAT Waived, GPA 3.51
MIT Sloan | Mr. International Impact
GRE 326, GPA 3.5
MIT Sloan | Mr. Energy Enthusiast
GMAT 730, GPA 8.39
Chicago Booth | Ms. Future CMO
GMAT Have Not Taken, GPA 2.99
Said Business School | Mr. Global Sales Guy
GMAT 630, GPA 3.5
N U Singapore | Mr. Just And Right
GMAT 700, GPA 4.0
Georgetown McDonough | Mr. International Youngster
GMAT 720, GPA 3.55
Columbia | Mr. Chartered Accountant
GMAT 730, GPA 2.7
Harvard | Mr. Spanish Army Officer
GMAT 710, GPA 3
Kellogg | Mr. Cancer Engineer
GRE 326, GPA 3.3
Chicago Booth | Mr. Financial Analyst
GMAT 750, GPA 3.78
Kellogg | Mr. CPA To MBA
GMAT Waived, GPA 3.2
Stanford GSB | Ms. Sustainable Finance
GMAT Not yet taken- 730 (expected), GPA 3.0 (Equivalent of UK’s 2.1)
MIT Sloan | Ms. International Technologist
GMAT 740, GPA 3.5
UCLA Anderson | Ms. Art Historian
GRE 332, GPA 3.6
Harvard | Mr. Harvard Hopeful
GMAT 740, GPA 3.8
Yale | Mr. Philanthropy Chair
GMAT Awaiting Scores (expect 700-720), GPA 3.3
Columbia | Mr. Startup Musician
GRE Applying Without a Score, GPA First Class
Chicago Booth | Ms. Entrepreneur
GMAT 690, GPA 3.5
Columbia | Mr. MGMT Consulting
GMAT 700, GPA 3.56
Harvard | Mr. Future Family Legacy
GMAT Not Yet Taken (Expected 700-750), GPA 3.0

Why The MBA Beats The MD & The JD

mba degree pay off


Of course, overall doctors on average are likely to earn more than typical MBA grads over the course of their careers. But the averages don’t tell the full story because a prestige MBA makes it far more likely for someone to climb the corporate ladder to gain access to higher paying senior leadership positions just as the degree increases the odds that a graduate may someday become an entrepreneur who successfully starts and scales their own companies. Those MBA graduates can easily outearn what the most accomplished doctors or lawyers make over a lifetime.

A study commissioned by Poets&Quants, for example, showed that over a 20-year career a Harvard MBA made $3,233,000 in income, while a Stanford MBA pulled down $3,011,000. At Wharton, the total was $2,989,000 and at UC-Berkeley’s Haas School graduates earned $2,858,000. The higher ranked the school, the more career income MBAs made. Median total compensation for an MBA from the top three schools was $3,011,000 versus $2,759,500 at a top ten, $2,266,000 for a top 50, or $1,771,000 for all MBA degree holders (see The Most Lucrative Seven-Figure MBA Degrees).

The Priceonomics study found that “graduates with all degree types experience a decrease in debt-to-income ratio after graduation, but in some professions, those ratios come down faster than in others. Medical professionals have the highest debt-to-income ratio immediately after graduation. This is likely because MDs begin their careers in residencies, which are essentially low-paid apprenticeships lasting three to six years. Once residents become practicing physicians, they can expect comfortable six-figure salaries and subsequently make fast progress on their debt.

“In contrast, MBAs have the flattest trajectories toward debt freedom. Though they have the lowest debt-to-income ratio across the entire post-graduation time period we considered, they make the least progress between years 1 and 11 after graduation.”


How does a school’s prestige factor into the value equation? As the earlier Poets&Quants analysis had shown, the Priceonomics study confirms that degrees from the most highly selective schools come with tangible financial benefits. “School reputation matters,” the researchers said. “For all disciplines except medicine, graduates of top-100 programs enjoy lower debt relative to their income upon graduation. This trend continues after graduation, with the exception of engineering graduate students, where students from less prestigious schools have more favorable debt to income ratios six years after graduation than their counterparts from higher ranked schools.”

Bottom line: “The ‘rich doctor’ stereotype makes medicine look appealing, but it doesn’t do justice to the burden of financing an MD,” according to the study. “Medical professionals take on an average debt near $200,000 to finance their degrees, and early in their careers, their income does little to offset their debt. Attending a more prestigious school doesn’t mitigate their high debt-to-income ratio; graduates of top schools pay just as much relative to their salary as grads from lower-ranked programs.

“In contrast, the average MBA makes six figures after spending one or two years in graduate school. They typically take on around $90,000 in debt, but consistently enjoy a low debt-to-income ratio. This is doubly true for graduates of top-100 business programs, who enjoy the high income that comes with access to a high-powered alumni network.”


Of course, this is a pure dollars-and-cents analysis that fails to take into account other important reasons to get an MBA degree, from the likelihood that a graduate would gain entry into jobs and organizations that would otherwise be off limits to the unusual ability of the MBA to allow someone who earlier made a different career choice to reinvent him or herself.

Eric Johnson, dean of Vanderbilt University’s Owen Graduate School of Management, made that latter point in a recent panel discussion of the MBA’s value at Poets&Quants’ CentreCourt event in New York City. “The MBA is a uniquely American invention,” Johnson said. “Where else can you at the age of 28 decide I really don’t like what I am doing. I want to go in another direction and reinvent myself. That is a really unique gift and I think most of the world is still catching up. I still don’t think they understand the American MBA as it has morphed, developed and polished it over the years. It is just an amazing thing. In much of the world, what will happen to you is pretty much determined by the eighth grade, whether you are headed into a factory or the administrative wing.

“We are in a great environment where you can be sitting in your career right now and think it’s going pretty well but it’s not where you would see yourself 15 to 20 years from now,” added Johnson. “So you decide to come back for an MBA and it can change the trajectory of your life. That is the magic of the MBA. If you compare it to almost any other graduate program on campus, it has a high ROI and an amazing potential opportunity creator.”


About The Author

John A. Byrne is the founder and editor-in-chief of C-Change Media, publishers of Poets&Quants and four other higher education websites. He has authored or co-authored more than ten books, including two New York Times bestsellers. John is the former executive editor of Businessweek, editor-in-chief of Businessweek. com, editor-in-chief of Fast Company, and the creator of the first regularly published rankings of business schools. As the co-founder of CentreCourt MBA Festivals, he hopes to meet you at the next MBA event in-person or online.