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25 B-schools that lead to the most student debt. MBA students borrowing more money than ever
Fortune ^ | 04/27/2011 | John A. Byrne

Posted on 04/27/2011 6:23:46 AM PDT by SeekAndFind

MBA students at top business schools are borrowing more money than ever to pay for their degrees.

The average debt carried on the back of graduating MBAs at Wharton increased by nearly $5,000 last year to a record $109,836, the highest debt burden reported by any business school. Wharton MBAs now graduate with debt that is more than a third higher than their counterparts at Harvard Business School and Stanford's Graduate School of Business.

The largest year-over-year increase in student debt was at Dartmouth's Tuck School, where the average debt burden of a class of 2010 MBA rose by more than $10,000 to $96,292, second only to Wharton grads.

Financial aid officers at B-schools attribute the rising debt levels to the recent recession, which led to pay freezes at pre-MBA jobs and caused applicants to tap into personal savings, as well as the increasing costs of tuition.

"Two years ago, the class came in with much greater financial aid," says Diane Bonin, director of financial aid at the Tuck School. "People coming in made a little bit less and had much less in available savings due to the economy."

After Wharton and Tuck, the highest debt loads were carried by graduates of Duke University's Fuqua School of Business ($92,827), the University of Michigan's Ross School of Business ($92,734), Northwestern University's Kellogg School of Management ($87,256), and Cornell's Johnson School ($86,900). These staggering levels of debt are far in excess of averages for undergraduate student loans -- $27,803 in 2007-08, the latest reported year -- and have fueled widespread concern.

Most MBA students at top schools eagerly take out what many would regard as crushing levels of debt because they are confident the degree will pay off in the long-term.

(Excerpt) Read more at management.fortune.cnn.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: businessschools; debt; mba

1 posted on 04/27/2011 6:23:51 AM PDT by SeekAndFind
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To: SeekAndFind

Bailout for students.


2 posted on 04/27/2011 6:25:17 AM PDT by ilovesarah2012
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To: SeekAndFind

Whoa. That’s practically the down payment on a house.


3 posted on 04/27/2011 6:25:51 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: SeekAndFind

Overpriced education bump for later.......


4 posted on 04/27/2011 6:33:26 AM PDT by indthkr
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To: SeekAndFind
I don't recall ever hearing of Thunderbird. The school, not the wine.
5 posted on 04/27/2011 6:33:29 AM PDT by Calvin Locke
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To: SeekAndFind
Most MBA students at top schools eagerly take out what many would regard as crushing levels of debt because they are confident the degree will pay off in the long-term.

Article does not state the average wages for one of these MBA grads so it is impossible to figure out if this is a good deal or not...

6 posted on 04/27/2011 6:33:57 AM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: pnh102
My plumber makes more per year than any of these MBA graduates will earn in their first 20 years. He works hard and long hours and takes a great deal of pride in his efforts.

While I have a BS and MS degree, I can't say that either has gotten me further than my 25 years of military experience.

These schools may be able to teach management, but leadership is all OJT.

7 posted on 04/27/2011 6:34:15 AM PDT by a6intruder (downtown with big bombs, 24/7, rain or shine, day or night)
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To: Calvin Locke

RE: I don’t recall ever hearing of Thunderbird. The school, not the wine.


Thunderbird School of Global Management is a private business school whose main campus is located in Glendale, Arizona.

Founded in 1946 by retired U.S. Army Air Forces Lieutenant General Barton Kyle Yount (1884–1949), it is arguably the oldest graduate school specializing in international management and global business.

You might want to visit their website :

http://www.thunderbird.edu/


8 posted on 04/27/2011 6:45:35 AM PDT by SeekAndFind
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To: a6intruder

These schools may be able to teach management, but leadership is all OJT.

I don’t necessarily agree. Leadership skills CAN be taught, though I will admit that experience is a vital piece of the component. I DO agree that an MBA isn’t necessarily the road to riches, if that’s the only reason someone is pursuing it. There are many occupations and vocations out there, plumbing being one, that pay very well.


9 posted on 04/27/2011 6:47:18 AM PDT by Arkansas Toothpick
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To: a6intruder

>>leadership is all OJT<<

Not true in the least. While it is true that you won’t excel at it without actual experience, there are a great number of excellent leadership learning opportunities (my training program, for one!). Unfortunately, few MBA programs develop this skill.


10 posted on 04/27/2011 6:59:36 AM PDT by 1L
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To: 2banana

My daughter just got her MBA. She is making $30K. Not a good investment - yet. Time will tell.


11 posted on 04/27/2011 6:59:46 AM PDT by ilovesarah2012
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To: a6intruder

It has long been a misconception that leadership = management. Grace Hopper once commented that managers manage things and processes, leaders lead people. Too many think of managers as leaders and that is not usually the case.

These graduates believe that they can buy either management and/or leadership status by virtue of what they pay for their degree. A degree gives you some level of base knowledge, if you pay attention. You are right that leadership is learned and earned by doing, or not.


12 posted on 04/27/2011 7:06:37 AM PDT by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: SeekAndFind

Northwestern University has had to raise prices across the board as the price of rubber has gone up and their Sex-Toy Class is feeling the pinch, or whatever.


13 posted on 04/27/2011 7:17:48 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: ilovesarah2012

RE: My daughter just got her MBA. She is making $30K. Not a good investment - yet.

Can you tell us what school she went to and what the tuition was ? Thanks.


14 posted on 04/27/2011 7:29:20 AM PDT by SeekAndFind
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To: SeekAndFind

North Greenville University - Greenville, SC. She also did her undergraduate there. All together, it is probably about $80k. Private Christian university. Some really great professors. I have met some of them. She will be paying back loans the rest of her working life, even though she had some scholarships. She actually graduates May 5 - magna cum laude. I am very proud of her, but she probably would have been better off becoming a plumber!


15 posted on 04/27/2011 7:35:30 AM PDT by ilovesarah2012
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To: SeekAndFind

Im an mba student. My tuition is 22k/yr.


16 posted on 04/27/2011 7:47:50 AM PDT by goseminoles
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To: ilovesarah2012

Give her a chance. I bet it will pay of in spades over time. If she doesn’t give up while in the trenches and leverages what she has learned, she will jump over obstacles put in front of her and eventually control her own destiny (just as I did after getting my MBA).


17 posted on 04/27/2011 7:53:23 AM PDT by balls (0 lies like a Muslim (Google "taqiyya"))
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To: Calvin Locke

Thunderbird: Located in Phoenix, Arizona. Formerly the American Institute for Foreign Trade, founded around 1949. It originally offered a Bachelors of Foreign Tade, and it educated thousands of Americans who entered the foreign trade field. It is expensive, and now tends to attract foreign students, who are probably in the majority. It offers a two year Masters Degree program.


18 posted on 04/27/2011 8:03:04 AM PDT by Melchior
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To: SeekAndFind

personalmba.com

19 posted on 04/27/2011 8:15:34 AM PDT by Future Snake Eater (Don't stop. Keep moving!)
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To: balls

That’s encouraging. Thanks.


20 posted on 04/27/2011 8:23:57 AM PDT by ilovesarah2012
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To: goseminoles

RE: Im an mba student. My tuition is 22k/yr.

May we know what school that is?


21 posted on 04/27/2011 8:55:14 AM PDT by SeekAndFind
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To: SeekAndFind

So let me get this straight. You go for an MBA to finally figger out that the money you spent on getting the MBA is a waste. Would you want this type of person running your business?


22 posted on 04/27/2011 8:55:37 AM PDT by SgtHooper (The last thing I want to do is hurt you. But it's still on the list.)
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To: SeekAndFind
They all deserve an 'F' in finance before walking into the first lecture.
23 posted on 04/27/2011 9:01:51 AM PDT by Glenn (iamtheresistance.org)
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To: SeekAndFind

$109, 836?

We paid $114K for our current home just over 3.5 years ago. If those students had put that money aside, they would have been able to buy my house in the time it took them to get a degree!


24 posted on 04/27/2011 9:05:44 AM PDT by Hoosier Catholic Momma (Change everything you are, everything you were, your number has been called.)
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To: SeekAndFind

Florida Institute ofTechnology.


25 posted on 04/27/2011 9:34:32 AM PDT by goseminoles
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To: Hoosier Catholic Momma

An MBA is what you make of it. Mine was priceless. It gave me an appreciation of Capitalism and freedom. It also taught me that losers have a state of mind that makes them hopeless cases.


26 posted on 04/27/2011 4:41:15 PM PDT by balls (0 lies like a Muslim (Google "taqiyya"))
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To: goseminoles

An MBA is what you make of it. Mine was priceless. It gave me an appreciation of Capitalism and freedom. It also taught me that losers have a state of mind that makes them hopeless cases.


27 posted on 04/27/2011 4:44:52 PM PDT by balls (0 lies like a Muslim (Google "taqiyya"))
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