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How Much Does An MBA Cost?

How Much Does An MBA Cost?

Paying for College
ELFI | July 8, 2022
How Much Does An MBA Cost?

If you have aspirations of leading a company or serving in senior management, a master’s of business administration (MBA) degree can help you achieve your goal. An MBA can be a worthwhile investment. According to the Graduate Management Admission Council (GMAC), individuals with MBAs earn millions more than their peers over the course of their careers.

However, an MBA can be expensive; depending on the program, you may have to spend $150,000 or more to earn your degree. Learn about typical programs and the factors that affect MBA costs so you can decide if this degree path is right for you. 

Average Cost of an MBA Degree

When it comes to the cost of an MBA, prices vary a great deal. On average, an MBA program costs $66,340. However, there is a significant difference in pricing between universities. Depending on where you go to school, your degree could cost anywhere from $55,000 to over $160,000.

What Factors Affect the Cost of an MBA Degree?

MBA costs vary a great deal; the total price of your degree is dependent on several factors: 

Online vs. In-Person MBA Costs

Online programs are increasingly popular because of their convenience and accessibility. However, you may be surprised to find that online MBA programs aren’t much cheaper than traditional MBA programs. The average cost of The Princeton Review’s selections for the top 15 online business schools was $75,806. 

However, the overall cost of an online program may be less expensive than in-person programs due to the other expenses you’ll save on: 

Plus, the greater flexibility may mean you can continue working while you’re in school. With a steady income, you may be able to cover some of the education costs out of your paycheck. 

Remote students don’t have to move to another state while they pursue an MBA, and they don’t have to cover the cost of room and board or transportation. 

Top-Ranked MBA Program Costs

Where you go to school to earn your degree is the biggest factor affecting your MBA costs. Top-ranked business schools can be very expensive; many programs cost well into the six-figures. Consider these costs for the top three business schools in the country, as ranked by U.S. News:

  1. Wharton Business School (University of Pennsylvania): Wharton is a private business school rather than a public university. The two-year Wharton MBA program costs $150,500 (tuition only).
  2. Chicago Booth (University of Chicago): $155,682 (tuition only)
  3. Northwestern University Kellogg: Depending on the program, $157,578 to $208,744 (tuition only)
  4. Stanford University: $153,900 (tuition only)
  5. Harvard University: $146,880 (tuition only)

As you can see, these programs are more than double the national average cost for an MBA. However, the expense may be worth it for some students looking to work for big-name companies and consulting agencies. Carefully weigh university costs against your career goals and your ability to cover the expense. 

How to Pay for an MBA

Before taking out student loans to cover your MBA costs, make sure you explore all of your financing options: 

When considering the cost of an MBA, keep in mind that you may not have to cover the entire expense out of your own pocket; you may be eligible for gift aid, fellowships, or employer assistance programs that make it more affordable. And with federal and private loans, you may be eligible for low-interest financing options. 

Repaying Student Loans After Your MBA

How long does it take to repay student loans? Depending on the type of loans you have and their interest rates, it can take 10 to 30 years to pay them off. 

To pay off your loans faster, use these tips: 

Particularly if you have high-interest private student loans, one of the best ways to repay student loans is to lower your student loan interest rate by refinancing. You’ll save money on interest charges, and refinancing can help you get out of debt faster. 

Use the student loan refinancing calculator to find out how much money you can save by refinancing your loans.

Apply for Private Student Loans With ELFI to Pay for Grad School

MBA costs are dependent on the program you choose and the university you attend but tend to be more expensive than other graduate degree programs. However, there are several ways to finance your MBA, such as scholarships, fellowships, employer assistance programs, and student loans. If you need to take out a loan, you can use ELFI’s rate check tool to view your loan options without affecting your credit score.