Should a Business School Scholarship Impact Your MBA Choice?
A brief look at Clear Admit MBA DecisionWire appears to indicate that more and more leading MBA programs are offering scholarship money, either need-based or merit-based, to encourage admitted candidates to enroll. This may be the result of competing for a smaller pool of top applicants amidst declining application volume (particularly in the USA and Europe).
This scholarship money reduces the price of the MBA, and therefore alters the calculus in terms of the cost-benefit analysis of the program. If you do have admissions offers from multiple programs, some of which include scholarship money, you will need to weigh whether the reduced cost alters your order of preference for schools.
Cases where scholarship dollars can alter your order of preferences include:
- Career Goal Impact: When your career aspirations, both short-term and long-term, are not impacted by choosing the program that would be from a lower-tier. For example, you are not seeking a career in consulting at the elite consulting firms, which generally focus their recruiting at the very top schools. Nor are you seeking opportunities in private equity and venture capital – jobs in this field are scarce and very much limited to top schools with strong networks in the domain. Perhaps you know where you plan to be post-MBA regarding geography, and the school that is offering you scholarship has a significant alumni presence in that region which would facilitate achieving your goals.
- Scholarship Prestige: The scholarship award is prestigious at the school, and offers you opportunities at that program that are not available to the general student body. For example, you may have access to a special mentor program. A ‘named’ scholarship is also something you can place on your resume, helping you to stand out from other students at the school. These advantages might be enough to sway a decision in favor of a lower-tier program, but they are only really compelling if your recruiting goals are not geared towards the firms that concentrate their hiring at the very top programs, as noted above.
Fundamentally, it is important to weigh a scholarship offer from both a short- and long-term perspective. While it might be compelling in the short-term to graduate from your MBA program with $100,000 less in debt thanks to a scholarship, that $100,000 in savings, discounted over a 40 year post-MBA career, may be small compared to the better career opportunities afforded by a more prestigious MBA program. This is exponentially more important when your career goals are targeting the high-paying careers of consulting, banking and tech – not to mention that those jobs often come with significant signing bonuses which can instantly help with some of those tuition loans. However, if your career is targeted to social impact and non-profit, and other careers that generally don’t pay as high a salary, the value of the scholarship, and reduced debt upon graduation, is more appealing.
Finally, if you are an international student, you need to factor in your desire to remain in the country or region of your MBA program, and how important that is, based on your potential to earn the same salary in your home country. A number of international students are using the MBA to help them relocate, but given the current immigration environment, the potential for doing this may be more limited. A scholarship, lowering the cost of the MBA, reduces the risk to the student who has to return to their home country upon graduation. The counter argument is, the more prestigious the MBA program to which you gain admission, the greater your opportunity of getting an offer that allows you to remain in the country of the MBA.
Overall, it can be tempting to jump at a substantial scholarship – especially when the loans one takes for an MBA program seem truly daunting. But in the end, just as with investing in the stock market, a long view is needed when computing the true value of such scholarships.
This article has been edited and republished with permissions from our sister site, Clear Admit.
Admissions Tip: Helping You Choose Your Business School
Deposit deadlines for Round 1 decisions are looming, many successful applicants are facing the enviable—but often agonizing—decision of choosing between programs. Though we know that those of you in this position will already be juggling an overwhelming amount of information about the schools on your short lists, we wanted to offer a few pointers to consider as you identify and evaluate the most important facts and factors in choosing between business schools.
Immerse yourself.
If you have not yet visited campus, go to the school and see what you think of the environment. Be sure to attend classes, talk with students, tour the facilities, and so on. Even if you have already made the trip, it’s a good idea to attend the school’s events for admitted students to meet your potential classmates. After all, these are the folks whose thoughts you will be hearing in class for two years and who will making up your future network.
Consider your immediate priorities.
Think about the location, size, teaching method, etc. Are you looking for a close-knit, “we’re all in this together” sort of experience, or would you prefer to attend classes and then disappear into a large city with a few classmates or old friends? Do you need the benefits of a large university to pursue coursework in a specific field? Do you crave lengthy discussions with faculty? Do you have family or a significant other who might need to consider your location? Are you strong in qualitative areas but looking to refine your skills in quantitative subjects? Is there a teaching method that might better address your weaknesses or best suit your learning style? Reflecting on the relative importance of each of these questions might help you to organize your thoughts about and the information on each program.
Look farther forward.
In addition to the experience you would have as a student, try to get a sense for the school’s track record in your target field. For example, if you hope to become a strategy consultant after school, take a look at each program’s placement statistics with the firms that are of interest to you. Talk to the career management office and find out which firms came to campus and how many offers were made. You might also try to contact alumni who work in your target field and see what they have to say about their alma mater’s strength in that area. A final option is to approach the HR departments of the firm you are likely to target and ask for their opinion of the programs on your list. This is also a nice excuse to build rapport with a potential future employer.
Think big.
Beyond the job you hope to secure immediately after school, consider the program’s regional and global brand. For example, if you are looking for work in London, you might investigate whether the school in question has an active alumni club in that city. Meanwhile, if you dream of working in Los Angeles but are debating between two programs on the East Coast, it might be important to determine which has the greater West Coast presence.
Do some quick analysis.
Two years ago, we launched MBA DecisionWire. This tool allows you to do searches on each of the schools at which you have offers, and see the decisions of your predecessors. When you have made your final decision, please head over to MBA DecisionWire, and add your entry; this will help future MBA candidates as they seek out their best MBA program options.
These are just a few general tips to get you thinking about how to make your b-school decision. It goes without saying that this is a once in a lifetime decision, so it certainly makes sense to do your homework and fully understand the strengths and weaknesses of each of your options. Rankings are a good starting point for a school search but should not be the deciding factor. Reading in-depth, independent reports on each program can be helpful, so be sure to check out the Clear Admit School Guides for their extensive cross-school comparisons on placement, class composition, campus life and more. Another thing to remember that the shoe is finally on the other foot, and the schools are now the ones marketing themselves to you. Be sure to take advantage of their offers to answer any questions you may have.
This article has been edited and republished with permissions from our sister site, Clear Admit.
Savvy MBA Application Strategy: How Many, Which Schools, and When to Apply
You’ve decided the MBA is the next stop on your career path. What now? The smartest applicants are those who take the time to create an informed MBA application strategy—a well thought-out game plan that can help you obtain your goals as efficiently and effectively as possible.
One of the first challenges you’ll face is school selection—strategically choosing which schools to target, bearing in mind the competitive mix of those schools.
In recent years, MBA applicants appear to be trending downward in terms of the total number of schools to which they apply. Research we have undertaken on data from MBA DecisionWire suggests that candidates now typically apply to about five programs. You can also explore MBA ApplyWire to learn more about other candidates application strategies.
“A combination of factors could be at play here,” suggests Alex Brown, a consultant to Clear Admit who spent years working in MBA admissions at Wharton. “More information is now available about schools, so it is easier for candidates to determine which are truly target schools, rather than the more shotgun approach of yesteryear,” he says. “The complicated nature of the application, engaging recommenders and so forth, may also be encouraging applicants to really refine their school list before applying.”
Making Your List
So what types of schools should make up the list a candidate ultimately applies to? While the answer will obviously depend on the individual candidate, one piece of advice applies to all. “Remember: Only apply to schools you would be absolutely happy to attend,” says Brown. “There is no value in applying to a school just to get an acceptance letter if it’s not a school that will help you reach your goals.”
With that main tenet as a guide, many candidates find it valuable to classify schools into three buckets: reach schools, realistic schools and safety schools. Applying to at least one school in each of these buckets helps position a candidate to get into and ultimately attend the best possible school her candidacy will allow.
Say you apply to all safety and/or realistic schools and gain admission to every school. While on the surface this appears like a successful MBA application strategy, that is only true if your mix of schools included the best possible school to reach your goals. “If you only apply to ‘realistic’ schools, you will never know if you could have achieved something that you presumed was beyond your reach,” Brown points out. Therefore, a truly successful application strategy often includes one or two rejections along with acceptances at schools where you will thrive.
The final consideration of a comprehensive MBA application strategy is when to apply to your selected schools. That is, what admissions round should you target for which schools and why. More on that in an upcoming post, so stay tuned.
This article has been edited and republished with permissions from Clear Admit.
