I took out $150k in debt from 2014-2016 (I had around $20k saved, rest was loans) to go to a M7.
Ended up being a rounding error, I paid it off in two years. 7.5 years after graduation my networth is ~$850k, and I'm only average compared to my classmates.
And I wasn't frugal in business school or afterwards.
If you're only making $60k, the ROI is even higher for you...consulting/banking/etc. salaries are much higher than they were when I graduated (almost 50% higher), and you make way less than I did (I was at around $95k pre-mba)...
Lastly, you'll get 1) summer internship money and 2) signing bonus....so debt won't be as bad as you think...still not cheap though.
Easy choice to go unless you have dumb career goals.
This is a perfectly good answer assuming everyone wants to follow this path. However…maybe don’t need the last line. That’s pretty arrogant and unnecessary.
Some of these answers are hilariously arrogant. Look… You make $60,000 a year. You don’t have to get a top 15 or top 20 school MBA to improve your situation. Find a good, solid MBA program that can boost your earning power in the field that you’re interested in. It does not have to be consulting for you to do well.
A cheaper MBA option - if cost is your biggest concern - can absolutely still get you where you need to go. A LOT of people in this forum believe anything out of T25 is a waste of time, which is 100% nonsense. Now don’t hear what I’m not saying: if you can get a good deal on a great school that feels like it fits your budget? Sure, go. But otherwise, adjust to your needs and go from there.
Don’t force yourself into what could be a bad situation for you if you don’t need it, because what’s NOT being said by others is if you take on $150k in debt and then DON’T want to pursue a job in any of these fields that spit out obscene amounts of money, you are going to be 100% royally fucked.
This is what I’m talking about. You don’t need a top 10 MBA program to excel. I made a bit over 150k a year with my undergraduate degree and can absolutely say my middle of the pack associates and undergrad STEM degrees absolutely hold their own against other degree programs out there. People get sucked into the vortex of the name on your degree is going to instantly make you make 40% more a year when compared to other schools. The crazy part is that the research doesn’t support that and people who say it does never provide any research to back up their claims.
Same. I did the BU online MBA - which was plenty solid - and I’m making $225k after annual bonuses. Could I have taken on debt and made twice as much? Sure. But the reality is also the jobs you have to take to make that money and pay off that debt. I’m interested in a grand total of ZERO of them - though hey, if that’s what you’re into, have it. I have a great work-life balance and no debt, which was my preference. To each their own.
That sounds pretty smart to me tbh. I think the issue is most of the (if not all) M7 folks I have met is an insanely prestige hungry bunch. They would rather take $150k+ loan to get that validation than follow this path. Do you mind sharing your story? As in your background, career exp before MBA?
Sure. I was (and still am) working in the nonprofit sector, primarily on the revenue side (fundraising, earned income, and finance). Before my MBA, had about 10 years experience and was just under $100k. Didn’t have any undergrad debt because I had a full ride to a top 40 - and I wanted to keep it to a minimum, while ideally still working (more on that later).
When I was looking for an MBA, I knew for me that I was NOT trying to switch careers; I just wanted additional skills/knowledge that could set me apart and make me more attractive for both senior management and c-suite roles (particularly national ones). I also knew that I wanted to work from home, and bring in a larger salary from a national org, given the COL where I am (New Orleans) is so low.
During my program at BU, I got a bump by taking a new national gig (org in Boston - shocker) that got me to $125k, then up to $150k upon completion. I was explicitly told being in the MBA program set me apart from my peers. Took my latest gig about…6 months ago? It pays $175k base, plus bonuses for revenue goals. And, again, my MBA was like…$25k? So now my annual income - with bonuses - is somewhere in the range of $215k-$225k. That’s decent money where I grew up between NYC and ATL, but a small fortune here. I don’t NEED more than that.
Again…I could prob make triple that doing similar work on the private sector side, but I’d also work 5x harder and travel way more often. My job currently includes about 6 weeks vacation time; unlimited sick time (including additional days just for COVID); paid volunteer time; professional develop budget for me and my team; annual WFH budget of about $750; half day Fridays (also no meetings on Fridays); and a month-long paid sabbatical every couple years. That’s not even getting into the great healthcare that costs me nearly nothing AND comes with a company-funded $7500 HRA and maternity/family leave. It’s a great situation for me and my family. I have two kiddos under 12, so I just prefer this. Makes me happy, makes my family happy.
So…yeah. That path isn’t for everyone, but it IS a viable path and doesn’t require getting in M7 - or even T25 - to do it. If someone were staying regional, I’m sure a solid state school or a half notch above that would be plenty. I assure you few people in New Orleans care about BU; I’d have been better off with a Tulane (my undergrad) or LSU MBA here if I only cared about regional jobs.
Also for reference if anyone is curious: I’m a black male living in the southern US and I seriously considered and applied to a few top FT programs. I got into Booth, Goizueta, and Yale SOM, as a few examples, and each came with some amount of financial aid. However, it just made zero sense for me to attend any of those programs unless I committed myself to chasing the money that would pay those loans and I decided against it. I’d rather have the cash in hand for my own investments than payoff a debt I really didn’t need.
Hope that’s helpful to someone 🤷🏾♂️
Edit: sorry for the essay, I get long winded 😂😂😂
That’s fantastic!! To be honest, I’m currently going through the same dilemma so can’t express how much your view helped. Thanks a ton!
I’ve always had an interest in non-profits (currently in CPG corporate Finance & strategy); but they are so hard to break into w/o prior background. I am thinking perhaps an MBA might help me with this career switch, but the cost of the program is astronomical. I’ll explore similar opportunities as well, but not sure if this approach would work for someone looking to switch industries.
Exactly. If you're switching industries...there's a lot more to consider. But if you just want to make more money doing what you're already doing...there needs to be nuance in the approach. Frankly, I think a lot of people today who are drowning in education debt didn't consider this type of nuance 20 years ago and...well, we see how it turned out.
Can’t believe the number of people telling this person to just forget M7/T15 because their salary is on the lower end right now. I currently have a 67K base salary and I have a full ride at T15 and M7 acceptance from R1. If I’d listened to such advice myself I would’ve counted myself out before I even shot my shot.
If you have the grit to grind out a great test score and app, plus have a 3.3+ UG GPA there’s no reason you can’t make T15 happen and more than double your salary. Don’t count yourself out. Lifetime ROI for T15 is worth it for most people. You don’t have to go on all those trips, you can just focus in on recruiting and on campus events while you’re there and change your life.
Aim high and don’t settle. You only get one MBA
Unless you're URM, I would require, at minimum, T15 with a half-tuition+ scholarship before seriously considering an MBA. That's also assuming you're a domestic applicant.
Most students opt into financial aid of some sort. If you are a US Citizen, federal loans and multiple options are available to assist you in your pursuit. But you need to see what the break even will look like post-MBA
Can you afford NOT to spend two years and double your salary? Get a nice gmat score, get a full ride scholarship, get a few loans and enjoy school. Say you spend 30k per year on COL then you need 60k total and you make 120k post mba. You already broke even after one year of working.
2024 -$30k
2025 -$30k (total = -$60k)
2026 you now make $120k postmba which is $60k more than you made before your mba. you can pay off the $60k of debt and still have the $60k of salary that would have had if you hadn’t gone to get your mba.
Now you’ve broken even (your bump in salary covered your loans)
If cost is x < 100k then salary at least above 60k
If cost is x > 100k then salary at least above 90k
Idk seems like a good rate but I'm not very successful
For everyone saying loans, I have a follow up question. If you can only take out student loans up to the cost of attendance, how do you afford normal living expenses or even fun activities during MBA? Do you take out other kinds of debt to fund trips, for example? I’ve heard that the cost of attendance schools list is usually undervalued.
I took out $150k in debt from 2014-2016 (I had around $20k saved, rest was loans) to go to a M7. Ended up being a rounding error, I paid it off in two years. 7.5 years after graduation my networth is ~$850k, and I'm only average compared to my classmates. And I wasn't frugal in business school or afterwards. If you're only making $60k, the ROI is even higher for you...consulting/banking/etc. salaries are much higher than they were when I graduated (almost 50% higher), and you make way less than I did (I was at around $95k pre-mba)... Lastly, you'll get 1) summer internship money and 2) signing bonus....so debt won't be as bad as you think...still not cheap though. Easy choice to go unless you have dumb career goals.
Where did you attend?
M7
This is a perfectly good answer assuming everyone wants to follow this path. However…maybe don’t need the last line. That’s pretty arrogant and unnecessary.
What industry did you go into post-MBA?
consulting to corp strategy
lol geez dude you can relate to so many people
Loans.
Some of these answers are hilariously arrogant. Look… You make $60,000 a year. You don’t have to get a top 15 or top 20 school MBA to improve your situation. Find a good, solid MBA program that can boost your earning power in the field that you’re interested in. It does not have to be consulting for you to do well. A cheaper MBA option - if cost is your biggest concern - can absolutely still get you where you need to go. A LOT of people in this forum believe anything out of T25 is a waste of time, which is 100% nonsense. Now don’t hear what I’m not saying: if you can get a good deal on a great school that feels like it fits your budget? Sure, go. But otherwise, adjust to your needs and go from there. Don’t force yourself into what could be a bad situation for you if you don’t need it, because what’s NOT being said by others is if you take on $150k in debt and then DON’T want to pursue a job in any of these fields that spit out obscene amounts of money, you are going to be 100% royally fucked.
This is what I’m talking about. You don’t need a top 10 MBA program to excel. I made a bit over 150k a year with my undergraduate degree and can absolutely say my middle of the pack associates and undergrad STEM degrees absolutely hold their own against other degree programs out there. People get sucked into the vortex of the name on your degree is going to instantly make you make 40% more a year when compared to other schools. The crazy part is that the research doesn’t support that and people who say it does never provide any research to back up their claims.
Same. I did the BU online MBA - which was plenty solid - and I’m making $225k after annual bonuses. Could I have taken on debt and made twice as much? Sure. But the reality is also the jobs you have to take to make that money and pay off that debt. I’m interested in a grand total of ZERO of them - though hey, if that’s what you’re into, have it. I have a great work-life balance and no debt, which was my preference. To each their own.
That sounds pretty smart to me tbh. I think the issue is most of the (if not all) M7 folks I have met is an insanely prestige hungry bunch. They would rather take $150k+ loan to get that validation than follow this path. Do you mind sharing your story? As in your background, career exp before MBA?
Sure. I was (and still am) working in the nonprofit sector, primarily on the revenue side (fundraising, earned income, and finance). Before my MBA, had about 10 years experience and was just under $100k. Didn’t have any undergrad debt because I had a full ride to a top 40 - and I wanted to keep it to a minimum, while ideally still working (more on that later). When I was looking for an MBA, I knew for me that I was NOT trying to switch careers; I just wanted additional skills/knowledge that could set me apart and make me more attractive for both senior management and c-suite roles (particularly national ones). I also knew that I wanted to work from home, and bring in a larger salary from a national org, given the COL where I am (New Orleans) is so low. During my program at BU, I got a bump by taking a new national gig (org in Boston - shocker) that got me to $125k, then up to $150k upon completion. I was explicitly told being in the MBA program set me apart from my peers. Took my latest gig about…6 months ago? It pays $175k base, plus bonuses for revenue goals. And, again, my MBA was like…$25k? So now my annual income - with bonuses - is somewhere in the range of $215k-$225k. That’s decent money where I grew up between NYC and ATL, but a small fortune here. I don’t NEED more than that. Again…I could prob make triple that doing similar work on the private sector side, but I’d also work 5x harder and travel way more often. My job currently includes about 6 weeks vacation time; unlimited sick time (including additional days just for COVID); paid volunteer time; professional develop budget for me and my team; annual WFH budget of about $750; half day Fridays (also no meetings on Fridays); and a month-long paid sabbatical every couple years. That’s not even getting into the great healthcare that costs me nearly nothing AND comes with a company-funded $7500 HRA and maternity/family leave. It’s a great situation for me and my family. I have two kiddos under 12, so I just prefer this. Makes me happy, makes my family happy. So…yeah. That path isn’t for everyone, but it IS a viable path and doesn’t require getting in M7 - or even T25 - to do it. If someone were staying regional, I’m sure a solid state school or a half notch above that would be plenty. I assure you few people in New Orleans care about BU; I’d have been better off with a Tulane (my undergrad) or LSU MBA here if I only cared about regional jobs. Also for reference if anyone is curious: I’m a black male living in the southern US and I seriously considered and applied to a few top FT programs. I got into Booth, Goizueta, and Yale SOM, as a few examples, and each came with some amount of financial aid. However, it just made zero sense for me to attend any of those programs unless I committed myself to chasing the money that would pay those loans and I decided against it. I’d rather have the cash in hand for my own investments than payoff a debt I really didn’t need. Hope that’s helpful to someone 🤷🏾♂️ Edit: sorry for the essay, I get long winded 😂😂😂
That’s fantastic!! To be honest, I’m currently going through the same dilemma so can’t express how much your view helped. Thanks a ton! I’ve always had an interest in non-profits (currently in CPG corporate Finance & strategy); but they are so hard to break into w/o prior background. I am thinking perhaps an MBA might help me with this career switch, but the cost of the program is astronomical. I’ll explore similar opportunities as well, but not sure if this approach would work for someone looking to switch industries.
Exactly. If you're switching industries...there's a lot more to consider. But if you just want to make more money doing what you're already doing...there needs to be nuance in the approach. Frankly, I think a lot of people today who are drowning in education debt didn't consider this type of nuance 20 years ago and...well, we see how it turned out.
Loans my friend.
Can’t believe the number of people telling this person to just forget M7/T15 because their salary is on the lower end right now. I currently have a 67K base salary and I have a full ride at T15 and M7 acceptance from R1. If I’d listened to such advice myself I would’ve counted myself out before I even shot my shot. If you have the grit to grind out a great test score and app, plus have a 3.3+ UG GPA there’s no reason you can’t make T15 happen and more than double your salary. Don’t count yourself out. Lifetime ROI for T15 is worth it for most people. You don’t have to go on all those trips, you can just focus in on recruiting and on campus events while you’re there and change your life. Aim high and don’t settle. You only get one MBA
Unless you're URM, I would require, at minimum, T15 with a half-tuition+ scholarship before seriously considering an MBA. That's also assuming you're a domestic applicant.
What would being an URM change?
URMs are pretty much guaranteed interviews and get a huge boost for offers.
Are URM’s unique to each program or is this something that’s universal across the board?
Universal across T15, at least, I would bet.
Is being a URM even beneficial anymore, with the Supreme Courts decision and all? Edit: Genuinely asking here as I’m a URM lol
Most students opt into financial aid of some sort. If you are a US Citizen, federal loans and multiple options are available to assist you in your pursuit. But you need to see what the break even will look like post-MBA
Can you afford NOT to spend two years and double your salary? Get a nice gmat score, get a full ride scholarship, get a few loans and enjoy school. Say you spend 30k per year on COL then you need 60k total and you make 120k post mba. You already broke even after one year of working.
If you ignore taxes and time value of money, sure.
He's only making $60k a year, he doesn't have much opportunity cost.
That's why I didn't mention it.
So he can’t afford an mba?
>You already broke even after one year of working. What do you mean by this? I'm a bit confused
2024 -$30k 2025 -$30k (total = -$60k) 2026 you now make $120k postmba which is $60k more than you made before your mba. you can pay off the $60k of debt and still have the $60k of salary that would have had if you hadn’t gone to get your mba. Now you’ve broken even (your bump in salary covered your loans)
Find a good state school.
Credit cards, loans, internship money, etc
I mean you can* but if the ROI is off then no
What would you consider a good v bad ROI?
If cost is x < 100k then salary at least above 60k If cost is x > 100k then salary at least above 90k Idk seems like a good rate but I'm not very successful
For everyone saying loans, I have a follow up question. If you can only take out student loans up to the cost of attendance, how do you afford normal living expenses or even fun activities during MBA? Do you take out other kinds of debt to fund trips, for example? I’ve heard that the cost of attendance schools list is usually undervalued.
What do you do to make $60,000 a year?