Complete Guide to Cost of an MBA Program to Top Schools Abroad

We often hear that MBA program abroad is worth every penny spent. We also hear of staggering costs of an MBA degree in a top university abroad. There is a lot of misinformation about the value of an MBA degree. Many students ask us: Where are cheaper MBA degrees available abroad? Why should I spend 3x the amount on tuition fees at College A, when I can get an MBA from College B in the vicinity for an affordable price?

This article aims to dispel all doubts, myths, and misgivings that students tend to have about the cost of MBA education abroad. While the numbers will vary from college to college, and country to country, we have tried to ascertain the actual figures based on our surveys, keeping in mind the needs of an Indian student planning to pursue an MBA abroad.

We cannot look at cost in isolation. To really understand the cost, we have to evaluate the value of MBA education. Some value-ads that an MBA gives you cannot be assessed in monetary terms. That’s because they are the intangible benefits you accrue from studying at a top school abroad. While these benefits may seem intangible, they are often the biggest drivers of success for any career aspirant. They help hone the skills that make MBAs world leaders. Here are these non-monetary benefits:

1. A Globalized Outlook to Problem Solving

There have been numerous pieces of evidence of managers who developed a holistic understanding of business problems just because they did a short course or a two-year management program abroad. You learn how to solve problems with an international perspective, by utilizing the learning of a diverse classroom.

2. Enhanced Communication Skills and Personality Development

The dynamic interaction you would be exposed to in an international school pushes you to upgrade your communication skills. You develop confidence and leadership skills by engaging with people around the world. MBAs who have studied abroad have an excellent command over their communication skills which teaches them to speak and listen to a diverse population.

3. Networking With Peer Group From Across the World

By the time you have graduated, your classmates would move to distant parts of the world. As alumni of the same school, you will find many opportunities to network, explore a business opportunity, and grow your market in new geographies. Not just that, you get access to mentors who are themselves distinguished, celebrated personalities with a tremendously successful track record. You get to learn and leverage yourself with the help of these people.

What’s the Cost of an MBA in a Top School Abroad?

MBA program in a top 20 business school abroad could cost you around $45,000 to $80,000 a year, but most of the programs cost between $55,000 and $68,000 a year. In the US, although the cost of an MBA degree can vary, the average tuition for a two-year MBA program exceeds $60,000. If you attend one of the top business schools in the US, you can expect to pay as much as $100,000 or more in tuition and fees.

Of course, these costs don’t take into consideration your opportunity to earn a scholarship, grants, or financial aid. While the actual numbers look grim, most students manage to ‘earn while learning’ through campus jobs, internships, and other working opportunities too.

But monetary analysis is incomplete without evaluating the salaries that MBA’s from top schools abroad draw. According to the latest survey done by US News, 90% of job-seeking MBAs from top schools found jobs within three months after graduation. Graduates who were employed within three months of receiving a degree earned an average of more than $100,000. MBA graduates from top schools such as Stanford, Harvard, and Wharton earned an average salary and bonus of $164,000. According to a 2017 annual survey by Graduate Management Admissions Council (GMAC), the median starting salary for business school graduates in the U.S. hit $110,000 for the first time in 2017, which is a jump of $10,000 over 2015’s starting salary.

However, there are many caveats to these figures. The salary will depend on several factors such as:

1. However, there are many caveats to these figures. The salary will depend on several factors such as:
2. How much work experience you had before your MBA makes a big difference to the earnings you’ll receive.
3. Where you seek the job, i.e., geographic location, since the cost of living varies depending on the city and state of employment.
4. What is the field or industry you choose to pursue an MBA? Salary offers vary widely between the government or non-profit sector and private sector industries.
5. What’s your job function: whether you choose accounting, human resources, or sales can affect your earnings, with those involved in management commanding top dollar.

What is the RoI Over a Long Period of Time?

Most B-school alumni do extremely well, financially, throughout their careers. They end up in top positions globally in multinationals, heading important divisions of conglomerates, and even becoming successful entrepreneurs.

An MBA program abroad may seem expensive, but it is a worthwhile investment if you seek to pursue a lucrative career in a high-demand role.

Check out our book – Break the MBA Code by Vibha Kagzi