the unemployment period. Assuming a professional earns $60,000 a year, a full-time MBA program can tack on an additional $120,000 in lost income and opportunity cost. Additionally, the student will have lost two years of work experience.
So summing it up, $80,000 for tuition, $40,000 for boarding and books, $20,000 for peripheral expenditures brings the total MBA cost to around $140,000, while the lost income brings the tab to a whopping $260,000. That figure amounts to more than four years of salary at an annualized income rate of $60,000. And this is an average school. If you are thinking about attending a more prominent business school, the costs shoot up. According to US News & World Report, in 2017 the average cost of the top 10 business schools in the U.S. was over $130,000 for tuition in a two-year MBA program.
Professionals can undergo a part-time or evening MBA program that allows them to retain their full-time jobs. Such programs typically take three or more years to complete. However, business training in an academic environment can supplement one's learning experiences on the job; a newly minted MBA who took such a route would have a well-regarded degree along with three years of additional work experience and exposure within the organization.
Work for a Major Company and Get a Free MBA
Some companies, especially major Fortune 100 corporations, can assume partial or the entire cost of an MBA program (assuming one earns satisfactory grades). This is an ideal situation for many professionals. To be sure, many would jump at the opportunity to continue earning a salary, get an MBA and have it paid for by one's employer.
Those who can wait a couple of years or so before starting the program should seriously consider this route. The company might also pay for a master's degree in accounting, a master's degree in finance or help pay to pass the CPA or CFA license. Those with family, however, should exercise caution in undertaking a full-time job as well as an intensive part-time MBA program. It can be a difficult challenge to find time and attention for loved ones, let alone having a social life. One can easily dedicate at least 70 hours per week on work and academics.
Professionals who want an MBA at less cost can consider one-year MBA programs. This can reduce overall educational expenditures as well as allow the newly-minted MBA the opportunity to start earning a salary one year early. One should undertake diligence and ensure that the quality of