| In recent years graduate schools have greatly | | | | it's free (as the name implies). The school will use |
| increased the number of MBA programs. Is | | | | the results to determine the amount of federal |
| getting a Master's in Business Administration right | | | | financial assistance that Jane may qualify for. This |
| for you? Could earning an MBA help you climb the | | | | may include low-interest student loans and grants. |
| ladder of success? We take a look at a typical | | | | Generally, colleges do not offer much in the way |
| case study - a middle manager who is considering | | | | of institutional financial aid for MBA programs. |
| getting her MBA. | | | | How Much Can Jane Expect to Earn with Her |
| Meet Jane Doe. She's a project manager at a | | | | MBA? |
| company that makes industrial temperature | | | | Most people don't earn their MBA because it's a |
| measuring devices. Jane has a bachelor's degree in | | | | fun thing to do. They want to boost their earning |
| electrical engineering, and she has been with the | | | | power. But how do you know what the effect is? |
| company for five years. She has her eye on a | | | | Is there any hard data to prove that getting your |
| promotion to division manager. She knows that | | | | MBA will result in higher earnings? |
| the corporate ladder is highly competitive, and | | | | Recently BusinessWeek and PayScale released |
| that the responsibilities of a division manager are | | | | the results of a survey of 80,000 grads from 45 |
| much broader than a project manager. If she | | | | MBA programs. The results may be surprising. It |
| gets promoted, she'll have to oversee human | | | | turns out that while the "name brand" of the |
| resources, marketing, R&D, even strategic | | | | school may make a big difference over many |
| planning. She'll be reporting to a vice-president, and | | | | years, some lesser-known schools seem to |
| she'll have senior management authority. | | | | produce high-earning graduates. |
| Jane could rely on her experience and track | | | | Years after graduation, graduates from blue-chip |
| record. She could also choose to get a | | | | programs such as University of Pennsylvania's |
| competitive edge by earning her MBA. | | | | Wharton School and Harvard Business School fare |
| The first thing Jane should do is find out if her | | | | the best and report high earnings. But graduates |
| company will pay for the program. Many do! | | | | of three schools - George Washington University, |
| Tuition and fees for an MBA program can range | | | | Georgia Tech, and the University of Connecticut - |
| from $15,000 to $50,000, and if the company will | | | | report that after 20 years they have cash |
| pay for it, there's no reason not to go for it. | | | | compensation that is at least double what today's |
| Jane should use a reputable online college directory | | | | MBA graduates make the year after receiving |
| to locate an MBA program. There might be one | | | | their diplomas. Are their higher earnings a direct |
| offered at a local college, or she may opt for an | | | | result of their MBA? Hard to tell. |
| online program. The level of instruction may be | | | | And here is another twist. The graduates of ten |
| comparable, and generally both classroom and | | | | schools, including Indiana University's Kelley School |
| distance learning programs take eighteen months | | | | of Business, reported that twenty years after |
| to two years to complete. If Jane has a family or | | | | graduation their median cash compensation was |
| a very busy personal life, she may choose a | | | | no better than what Harvard Business School |
| distance learning program for maximum scheduling | | | | grads made one year after graduation. |
| flexibility. | | | | So is the value of an MBA in what you learn and |
| Many MBA programs offer specialized | | | | the skills you acquire, or is the value simply the |
| concentrations. Students may be able to choose | | | | fact that because you graduated from a |
| from marketing, information science, finance, | | | | prestigious name-brand program, you are more |
| management, leadership, hospitality, and many | | | | likely to be hired and promoted? Jane, like many |
| other areas. Jane's choice of school may depend | | | | other MBA candidates, will have to find out for |
| upon the focus she seeks. | | | | herself. |
| After choosing a school to apply to, Jane will | | | | Choosing an MBA Program |
| almost certainly need to take the Graduate | | | | But how does Jane - or John - choose the MBA |
| Management Admissions Test (GMAT) and, if | | | | program that will work for them? The best way |
| she's not a native English speaker, the Test of | | | | to get free information is to log onto a reputable |
| English as a Foreign Language (TOEFL). The | | | | online college directory such as the one below. |
| GMAT test has two sections, verbal and | | | | You can compare programs and also check out |
| mathematics. Graduate schools have individual | | | | things like financial aid and career services. Once |
| criteria for scoring and admissions requirements. | | | | you find three or four colleges that interest you, |
| If her company doesn't subsidize tuition, Jane can | | | | simply contact the schools, discuss what you're |
| apply for financial assistance. Many grad schools | | | | looking for and what they offer, and then make |
| offer federal financial aid programs. The first step | | | | your applications. In less time than you think you |
| is to complete the Free Application for Federal | | | | could be on your way to earning your MBA! |
| Student Aid (FAFSA). The application is online and | | | | |