ROI and the Decision to Finance Your MBA

When you are about to commit to financing an MBA, it may be hard to imagine how and when you’ll recover the cost. However, if you are a graduate from Vanderbilt’s Executive MBA Program, it may be harder to remember why you waited so long (12-14 years on average post college) to get started with the MBA and enjoy these substantial returns.

Consider these facts:
• While experiencing the worst of the recession, the Vanderbilt EMBA Class of 2010 graduated earning 20.3 percent more than pre-MBA. That is nearly double the increase for all EMBA programs (at 11.4% globally--still good, given the economy, and a great endorsement for the educational investment in general.)
• In recent Vanderbilt classes, the time to recoup the total cost was 1 year after graduation to less than 4 years.
• With these supporting facts, the average 50k school debt for EMBA 2010 graduates doesn’t look so daunting, since typical students have 20 or more years to enjoy increased earnings after completely recovering the cost of their MBA. When those Vanderbilt MBAs earn $28,500 more by graduation on average and take off from there, the gain is a million dollars or more in improved earnings over that 20-year period.

How long will you want to work and enjoy those returns? How long will you need to work with those kinds of returns? If your inclination is to work really hard and retire really well, consider the real return on education, not just the upfront cost of tuition.

And yet, the top reasons most of our students pursue an MBA are not financial, although they result in financial gain down the road. These reasons include ability to be more effective, versatile, valued, and promotable at work; ability to be agile in finding new employment; desire for hedges against uncertainty; and desire to remain competitive.

Planning to enroll this year? Now is a great time to fill out your FAFSA (if a US citizen) and consider the educational loan that can be your path to career agility, and, yes, a better income. Are you worth the investment? Need some reassurance? Call us at 615.322.3120.