Forbes MBA Rankings: ROI Rules
Forbes published yesterday its biennial MBA rankings, based entirely on ROI five years after graduation. The top full-time programs on this basis:
The Top Ten
(If you are going to use this data at all, please also read Forbes' ranking methodology.)
Forbes' data show that part-time programs and non-US programs clearly have a ROI edge on American full-time programs because they reduce the students' opportunity cost. The part-timers have no opportunity cost and most overseas MBA programs are only one year, which halves overseas students' opportunity cost.
B-schools have struggled over the last three years with sharply lower application volume. Jennifer Merritt in her April article "MBA Applicants are MIA" notes:
"Perhaps the toughest issue is soaring tuition. At top-tier schools, tuition is up nearly 55% over the past six years, to an average of $33,774 for each of the two school years. And students bear far more than the cost of the degree. With an average of five years' work experience, the typical 27-year-old student gives up an average pre-MBA salary of about $67,000."
She also reports the increased popularity of part-time programs and growing competitiveness of European programs.
Declining application volume could be a simple case of "follow the money."
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