What an MBA Degree Is and What You Need to Know
Categories: US Education News
What an MBA Degree Is and What You Need to Know
College students and young professionals often wonder whether attending a top graduate business school will set them up for career success.An MBA degree is a popular steppingstone to C-suite jobs at large corporations and an asset for budding entrepreneurs. It's a credential that appears on the resumes of numerous Fortune 500 executives, including Walmart president and CEO Doug McMillon, who earned his MBA at the University of Tulsa in Oklahoma, and Meta COO Sheryl Sandberg, an MBA alumna of Harvard Business School in Massachusetts.
An MBA degree from a quality business school can help people break into certain highly competitive business sectors, such as Silicon Valley tech companies or the Wall Street finance industry, Sangster says. Prospective students who dream of working in major cities far from home can often benefit from earning their MBA at a nonlocal school, she adds.However, MBA hopefuls who have family commitments or want to stay at their current company may not want or need to attend a nationally renowned B-school if that means moving across the country, she acknowledges. Those who are more focused on gaining skills than adding cachet to their resume can benefit from attending a regional B-school.
The Cost of an MBA
Annual tuition and fees are far higher at some ranked, full-time MBA programs than at others. The most expensive ranked programs charged yearly rates of $70,000 or more in the 2021-2022 school year, while the least costly programs were below $20,000.Top business schools tend to have higher tuition and fees than schools further down the rankings. But this isn't always the case, and cost differences sometimes exist between B-schools that rank similarly. For example, New York University's Leonard N. Stern School of Business charged $78,700 in tuition and fees for the 2021-2022 year, but the school it tied for 12th place in the overall U.S. News MBA rankings – Duke University Fuqua School of Business in North Carolina – charged $70,000.
The Average MBA Salary and Bonus
Starting salaries and signing bonuses vary greatly among MBA graduates, with alumni of highly ranked B-schools in the 2023 U.S. News Best Business Schools rankings earning notably more than their peers who graduated from lower-ranked schools.U.S News data shows that pay among MBA grads differs by sector. Those who work in the consulting sector are paid an average base salary of nearly $147,200, while those who work for the government typically make approximately $87,700, or about $59,500 less.
MBA Requirement
MBA applications typically include standardized test scores, resumes, academic transcripts, essays and recommendation letters.Many B-schools will accept either GMAT or GRE test scores. However, there are some test-optional MBA programs where applicants do not need to submit business school entrance exam scores. Additionally, some B-schools that ordinarily require test scores will waive that requirement for applicants who qualify based on impressive work experience or a solid college GPA.
MBA Concentrations and Specializations
MBA programs generally offer a range of concentrations or specializations that allow students to acquire expertise in a specific aspect of business, such as finance or technology.
How to Prepare for an MBA
It's important for aspiring students to figure out their general career goals before pursuing an MBA program so they can capitalize on their program's on-campus recruitment opportunities, Horan says. MBA recruiters often visit business school campuses shortly after MBA programs start.