<p>I understand that not everyone with an MBA will become a CEO or P/VP. but what can i expect to gain with a master in engineering and an oversea MBA? I want to set a realistic 3-5yrs goal for myself, but it's hard when the school only tell sucess stories.</p>
<p>A lot will depend on where you obtain your MBA, your prior working experience and what industry you want to work in.</p>
<p>does anyone know how long on average does it take to pay off the 150k debt for the MBA?.. Assuming he/she comes from a top 10 MBA..</p>
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<p>Depends on what kind of job you take afterwards. For example, if you go to fields like investment banking or private equity, it won’t take very long at all. Heck, that’s probably a big reason why so many MBA’s enter those fields.</p>
<p>^^ Sakky’s right. An avg is not really very representative of the individual student. One could go into real estate and make well under six-figures a few years and then suddenly make 350k in one year.</p>
<p>I know a VP of a fortune 500 whose stock options grew in value by 750k in one day simply because it was announced that another fortune 500 would purchase his company. The point of this analogy is to show that high level positions often don’t produce consistent pay outs.</p>
<p>I know there must be people who graduated from a top 10 MBA who fail to land a job in IB/PE/Management consulting.. will they be in huge trouble? Is MBA (and the 150K loans) a huge huge risk?</p>
<p>It depends on what you were making before the MBA. An MBA is certainly a risk, but in the big scheme of things, 150k isn’t really all that much money so I’d say it is not a huge huge risk.</p>
<p>Getting into a TOP 10 MBA means you were pretty demanded in the market place from the start, after graduating I would assume you would be signficantly more demanded. It’s risky, but not that risky.</p>
<p>^I would generally agree with that. I think even median average salary of first job out of top 10 MBA is ~ $140K. </p>
<p>Also, where are you getting $150K in loans from? I haven’t specifically seen costs since graduating, but would have guessed it was no higher than $110K for two years, which doesn’t include paying any of the costs out of accumulated savings initially; so would have thought the amount of loans you would have would be less than half this amount.</p>
<p>The private top 10 MBA schools’ tuition are more than $40K per year, adding medical insurance, books, living expenses,travel, the cost per year easily tops $70K. Assuming a lot of students have no savings especially after paying down undergraduate debts, I am not surprised that the loans for 2 years are about $150K.</p>
<p>How is the workload for MBA? Is it possible to work part time?</p>
<p>^ Fulltime MBAs are very intenese. There are very few students that work at the same time, and I would recommend against it.</p>
<p>If you absolutely need to work part-time, you may want to consider part-time or evening MBA programs.</p>
<p>I guess it is possible to approach $150K in loans if your savings is literally zero, but that seems somewhat unrealistic after working 4-6 years. Glancing at a couple of the MBA websites, it looks like the average amount of loans that students have at graduation is ~ $90K.</p>
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<p>That’s just the loans as part of the financial package given by the schools, not reflecting any private or outside funding.</p>
<p>Here’s the yearly cost of Harvard’s MBA program
[Cost</a> Summary - Harvard Business School MBA Program](<a href=“http://www.hbs.edu/mba/admissions/costsummary.html]Cost”>http://www.hbs.edu/mba/admissions/costsummary.html)</p>
<p>Wharton’s
[Wharton</a> MBA: Cost Summary](<a href=“http://www.wharton.upenn.edu/mba/admissions/finance/cost.cfm]Wharton”>http://www.wharton.upenn.edu/mba/admissions/finance/cost.cfm)</p>
<p>Stern
[FULL</a> TIME MBA Profile: BusinessWeek](<a href=“http://www.businessweek.com/bschools/rankings/full_time_mba_profiles/stern.html]FULL”>http://www.businessweek.com/bschools/rankings/full_time_mba_profiles/stern.html)</p>
<p>Most students’ pre-MBA salaries are in the high $50K and $60K ranges, how do they pay the difference between $150K costs and loans of $90K assuming no grants are given? I am sure they don’t have the savings to cover it.
My D, who recently graduated, certainly didn’t had she not received a merit scholarship. Even then we had to help out with extras like semester abroad, networking road trips, etc.</p>
<p>If you were able to have done it without much loans, gellino, more power to you.</p>
<p>I guess working in IB and then a HF that I had more substantial savings than many. At the time, I thought I was about average considering that 1/3 of my MBA class didn’t take out any loans at all. With rising costs, it appears this figure is more like 1/5 now. If someone averages $50K a year for five years, I would think they would at least be able to save $60K in five years.</p>
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<p>For someone making $50K, after all deductions for taxes, Medicare, medical insurance, participation in 401K, net is about $2400 per month. How would you expect to save $1000 per month from this? You do the math. Anyway, that’s all I have to say on this matter, readers can deduce for themselves.</p>
<p>BTW,my S did IB and now is in PE and he sees no reason for him to do an MBA thereby saving a ton of money including opportunity costs.</p>
<p>I think you guys forgot to take college loans that college grads have to pay into account.. which differs by amount for everyone..</p>
<p>“For someone making $50K, after all deductions for taxes, Medicare, medical insurance, participation in 401K, net is about $2400 per month. How would you expect to save $1000 per month from this? You do the math. Anyway, that’s all I have to say on this matter, readers can deduce for themselves”.</p>
<p>One, $2400 per month net implies only taking home 57.6% of gross salary, which seems somewhat low to me; especially out of NY. However, $900 per month rent and $500 per month in personal expenses gets you to saving $1000 per month in that scenario. If your salary is only $50K a year, you’re probably not spending NYC level rents or expenses.</p>