Weighing the costs and the financial benefits of an online MBA

A Master of Business Administration (MBA) degree is a popular business choice for anyone pursuing a career in business or leadership – but the price of tuition, coupled with the cost of taking a career break, can make it an untenable option for many.

Online Master of Business Administration degrees have gained popularity among busy professionals who want to advance their careers without the constraints or costs of a traditional on-campus MBA programme. Through virtual online learning platforms, these programmes deliver advanced business and management skills and knowledge – mirroring their on-campus counterparts in curriculum – with a focus on flexibility, allowing students to balance their studies with their personal and professional commitments. 

“The growing popularity of online MBA programs can be attributed in part to post-pandemic aftershocks that led to shifts in the way such programs are perceived. Both universities and students confirm that online programs are more cost-effective and provide easier access to education than in-person options,” says the Association to Advance Collegiate Schools of Business (AACSB). “But that’s scarcely the whole story. Students themselves are becoming more discriminating in what they expect from their education and how much they think it should cost.”

The typical costs of an online MBA

There are a few costs to consider when thinking about an online MBA. The most significant, of course, are tuition fees. These can vary widely based on a number of factors, such as the business school’s reputation or accreditation status, but a high price tag doesn’t necessarily mean a better-quality degree:

“Although some of the more expensive online MBA programs have the best reputations, cost is not necessarily an indicator for a quality online MBA program,” explains TopMBA.com, a website run by QS, the body behind the QS World University Rankings.

Other costs include textbooks, software subscriptions for coursework, and potentially travel expenses for networking events, internships, or even international residencies. 

Another thing to be aware of when looking at online MBA costs is the payment structure. Some degrees have a single programme cost, whereas others allow students to pay per module or elective, which can be helpful for people who want to do their online MBA part-time, and spread the cost out.

Plus, it’s worth remembering that online MBAs are often more affordable than their on-campus counterparts:

“By and large,” says Times Higher Education, “online MBA programmes are considerably less expensive, with lower tuition fees and savings on housing, campus facilities and commuting.”

Tips for managing the costs of an online MBA

An MBA degree requires a significant investment of both time and money, but there are ways to help reduce the financial burden. 

For example: 

• Explore financial aid options. Many institutions have scholarships, bursaries, and other schemes available for MBA students. Prospective students should also investigate employer sponsorship options.
• Budget wisely. Create a comprehensive budget that accounts for all foreseeable expenses. This includes the obvious costs, such as tuition and academic resources, but can also include things like upgrading the internet service at home to ensure a stable connection during online classes and coursework.
• Consider part-time study. Enrolling in an online MBA programme on a part-time basis allows students to spread the cost of the degree out over a longer period – especially if the programme offers a pay-per-module option – while maintaining full-time employment.

The financial benefits of doing an online MBA

An online MBA can significantly impact a person’s career trajectory and earning potential.

For example, MBA graduates often see a substantial increase in their salary once they’ve obtained their degree, and can benefit from enhanced opportunities for career advancement.

According to a 2022 report from MBA.com – Is Business School Worth It? – an MBA graduate can expect to earn $3m (US) more than someone with only a bachelor’s degree, and “activities facilitated through business schools are the primary source of most graduates’ job acceptances.”

The specialisation options offered on many online MBA programmes – such as in corporate finance, risk management, or supply chain management – also allow learners to tailor their business education to specific career goals, making them more attractive to employers.

And on top of all of this, the leadership skills and the knowledge gained from tackling real-world business scenarios during MBA studies both prepare graduates for high-level – and high-paying – decision-making roles. In fact, 76% of graduates agree that their business school experience prepared them for leadership positions.

Other benefits of online MBAs

Beyond the direct financial benefits, online MBA programmes offer a number of additional advantages. These include:

• Flexibility. For many students, the flexibility of online MBA programmes is their most attractive feature. The ability to study from anywhere, and the mix of asynchronous and synchronous learning, allows online MBA students to study at their own pace and schedule, and means they can fit their course into their personal and professional schedule. Online degrees also mean that MBA students can easily access a high-quality education from anywhere in the world regardless of their geographical location.
• Networking opportunities. Despite the distance learning format, many online MBA programmes offer real-time networking events as well as access to expansive global alumni networks.
• Services and support. Earning a degree online doesn’t mean sacrificing access to on-campus resources. For example, many online programmes offer extensive career services – covering everything from CVs and LinkedIn profiles to interview preparation – as well as academic support services, IT trouble-shooting, and so on.

What to consider when evaluating the costs and benefits of online MBA programmes

When considering an online MBA, there’s no right or wrong option – ultimately, it comes down to what’s best for the prospective students, their needs, and the things that are most important to them. Factors they may want to consider as part of an informed decision include:

• Accreditation and rankings. Is the programme accredited by any reputable organisations? How does the university or business school fare in league tables, especially in areas such as teaching and research quality? 
• Curriculum and specialisation options. Does the programme content align with the prospective student’s requirements? Does the programme offer areas of specialisation – such as entrepreneurship or financial management – that align with the student’s career goals? 
• Networking and career opportunities. Are there opportunities to network within the programme? Does the institution have strong links with industry and the business world? Do graduates tend to go on to new opportunities, or advance their careers, after the programme? Look to career outcomes resources such as HESA, which publishes annual Graduate Outcomes statistics, for guidance. 
• Student learning experience and academic expertise. What do current students say about the programme or the institution? Are academic staff or faculty members well-regarded? Do they have solid professional experience? Are they available to answer questions and provide support when needed? 
• Entry requirements. What are the requirements around existing work experience? Does the programme require an entrance exam, such as the GMAT?  

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• MBA
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