MBA tuition increases demath and rises
Business Schools Barbara Barkhausen, June 5th 2016 / 06-15-2016
It seems to be a complete paradox. According to research by the Financial Times, institutions that charge as much as top US schools found it easier to attract candidates to their programmes than less expensive schools.
As one example the Financial Times cites Desautels Faculty of Management at McGill University in Canada which raised its MBA fees to a level that would make the course self-funding. The rise in fees started six years ago and compared to the initial fee, tuition cost has now more than tripled. Interestingly enough, though, this did not affect its student intake. The rise in fees did not deter students but instead attracted them to the school which has now increased the number, global reach and quality of student applications.
Another school that has fared well with increasing annual fees steadily over the years is Insead. However, as with most European schools Insead’s course is only ten months long, currently costing 71,000 Euro. And even with annual fees as high as Stanford Graduate School of Business or MIT Sloan School of Management, Insead can boast a higher return than these schools as they have a two-year study period writes the Financial Times.
Data from the FT also revealed that the top 25 US schools now charge an average fee of 118,468 US dollar - 81 per cent more in 2006. This leaves most students with six-figure debts and has made scholarships a most prized possession.
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Rising MBA tuition fees fail to damage demand