Master of business administration (MBA)

Compare the resumes of top executives and you may notice some similarities. Most list a master’s of business administration, or MBA, among their education credentials. An MBA is a graduate-level degree that offers practical and theoretical training in the fundamentals of business management. This comprehensive guide provides essential information about how to get an MBA.

What is an MBA?

An MBA is a graduate-level degree that prepares students for managerial roles in the business world and beyond. It often serves as a steppingstone to C-suite jobs at large corporations. It is also advantageous for aspiring entrepreneurs.

Typical coursework

Most MBA programs include courses in core subjects like accounting, economics, marketing, and operations. Elective courses allow students to customize their MBA to their personal interests or professional goals. Some programs require an internship along with coursework.

What can you do with an MBA?

An MBA is traditionally pursued by business professionals with a few years of work experience under their belt. It opens doors to senior roles in various corporate settings. Working for a few years before applying to MBA program can be beneficial, or even essential, as many companies prefer to hire employees with a combination of education and practical experience.

Benefits of getting an MBA

The below shows the economic performance of an MBA 2 years after graduation. It offers a comparison of earnings to the median debt accrued, and compares the new earnings to earnings 2 years after receiving a bachelor degree in the same field of study. While the investment in an MBA is significant, the payoff can be too.

How much does an MBA cost?

Tuition is a serious consideration when it comes to picking a business school. There is a lot of variation among programs, with some more affordable than others. Tuition at a top-ranked MBA school ranges from $90,000 to $161,000. Additional expenses could put the total cost at over $200K.

We are limited to measuring the median debt graduates in this program incur upon graduation. See below how the debt and repayment rates differ based on institutions types.

Public and private educational institutions have similar debt and annual repayment rates. These are somewhat higher at for-profit institutions.

Types of MBAs

There is a lot of variation between MBA program structures to accommodate students’ career levels and goals.

Traditional MBA

The traditional MBA is aimed at candidates with 2 to 7 years of work experience. Such programs usually require students to quit working to study full time. Some programs may offer part-time curriculums that allow students to work and go to school. Full-time programs usually last 2 years, but some schools now offer accelerated MBA programs that can be completed in a year.

Full-time programs may require you to complete an internship during the summer after the first year. An internship is an opportunity to use your skills. It can also serve as an audition for a job with the company. Many students are offered full-time employment with their internship company.

While the first year of a traditional MBA program covers the core curriculum, the second year tends to focus on elective courses and specialization options.

Executive MBA

An executive MBA is aimed at mid- or upper-level managers with significant leadership experience. Students in these programs typically have more than 7 years of experience. These programs usually adhere to the cohort or cluster style.

Executive MBAs are often structured so you learn from other students. Case studies tend to form the basis for learning, and fellow students from various business backgrounds contribute as much to the discussion as the instructor.

These programs are generally shorter than traditional MBAs. Most programs run from 16-22 months. They are designed to fit in with your work schedule. Scheduling options vary. The sessions of some executive programs take place on weekends, others meet 1 or 2 nights per week. Additionally, some programs offer a more intensive approach, meeting for a whole week each month.

Very few executive MBAs offer internships. They tend to assess prospective candidates based on work experience rather than standardized test scores. Many executive programs don’t require a GMAT or GRE, instead weighing relevant work and leadership experience as criteria for acceptance.

Online MBA

Online MBA programs are an option for students who require a flexible schedule and location. There is a lot of variability among online programs, so it’s advisable to investigate the specific parameters of any program you’re considering. For example, some programs allow students to complete coursework at their own pace, while others use a cohort format that includes online meetings.

Many online MBAs utilize pre-recorded lectures and instruction. This asynchronous approach allows students to learn when it’s convenient for them. Other programs offer synchronous instruction, requiring students to be online at a scheduled time.

The amount of interaction with other students can also differ between programs. In some, you are required to complete coursework independently. Others include regular online discussions and collaborations, or even opportunities to network face-to-face with fellow students and instructors.

Online programs typically take longer to complete than executive or traditional MBAs. Most require a 3-4 year investment of part-time study.

Comparing different types of MBA programs

When comparing which type of MBA program is right for you, there’s a lot to consider.

MBA specializations and concentrations

There is a subtle difference between specializations and concentrations. Concentrations provide students with exposure to subject matter through a series of focused courses within a given study area. Specializations provide students with deep knowledge in a specific area of expertise. Consider the types of specialization classes you could have access to as part of an MBA program.

How to pick an MBA program

Look for a program that fits your career goals and experience. Also consider how much time you want to devote to your education. These days, there are alternatives to the traditional 2-year MBA. Schools offer many different MBA programs based on work experience, your geographical location, and the amount of time you have available.

Questions to ask yourself

Consider the following questions when choosing an MBA program.

1. How much experience do I have?
   Upper-echelon business schools often require real-world work experience along with a bachelor’s degree from their applicants. The average age of first-year students at 18 of the top 25 MBA programs in the U.S. is 28. Students who enter these programs have an average of 5 years’ work experience. Executive MBAs are generally only available to professionals with 7-10 years of leadership experience.
2. What are my goals?
   If networking is a key goal, an online program may not be the best choice.
3. Am I ready to study full time?
   If part-time attendance is an important feature, focus your search on an online rather than traditional MBA. Keep in mind that online programs are more flexible but also last longer, around 3-4 years.
4. Would an online program suit my needs better?
   With 47.2% of all MBA programs available fully online, this is one of the easiest degrees to earn online without compromising on quality.

Other considerations

See our comparison of traditional, online, and executive MBAs below.

Best MBA programs

Find below our ratings of the comparative earnings, debt, dent to earnings ratio, and the earning premium by MBA program. Please review our methodology for more information on what metrics we look at, and how to determine comparative value between institutions. Note that missing information is usually due to insufficient data for reporting.

How to get an MBA

1. Earn a bachelor’s degree
2. Gain work experience
3. Take the GMAT and/or GRE
4. Find a program that suits your circumstances and goals
5. Submit your application
6. Fill out the FAFSA or consider how you can otherwise fund your studies
7. Start your program
8. Excel in your MBA classes and network

Financial aid and scholarship options

Your first stop for financial aid should always be the Department of Education’s website for Federal Student Aid. This is where you can find and fill out the Free Application for Federal Student Aid.

If you fail to receive enough federal grant money to attend college, you may want to consider taking out a guaranteed student loan.

If you are employed, check whether your employer offers a tuition assistance program.

Apply for as many eligible scholarships as you can.

Talk to your school’s financial aid department about fellowships, scholarships, and private grants.

Leverage your company

Pursuing an MBA when you’re already employed allows you to take advantage of employer assistance. Many companies offer tuition reimbursement, scholarships, or other incentives for returning to school. They do this for 2 reasons. First, employees who earn MBAs acquire valuable skills that can enhance their job performance. Second, covering tuition costs increases employee retention, satisfaction, and company loyalty.

Investigate your company’s policies and requirements on education reimbursement. Some companies subsidize a portion of the tuition, while others pay the cost in its entirety with the expectation that you continue to work for the company for a specific time. Others set up competitive fellowships. Similar to scholarships, fellowships are often merit-based and there is an application process.

Not all companies offer a formal tuition reimbursement program. However, you can always make a proposal to your supervisor that outlines why earning an MBA would benefit you and more importantly, the company. Treat your proposal like a business pitch. Include elements like:

• your professional accomplishments at the company
• the total cost you would like your company to reimburse
• any time off you need for courses and projects
• an outline of how the MBA program is relevant to your work and to the company
• the length of time you commit to working at the company after earning your MBA

While the company may turn down your request to contribute to the cost of your MBA, it is well worth it to inquire about the possibility.

What to expect from an MBA program

Although MBA programs have courses in broad topics like management, finance, marketing, and accounting, some offer specializations and concentrations not universally included. By focusing on a specialty, you can expand your skills and might make yourself more marketable to future employers.

 How long does it take to get an MBA?

Traditional on-campus MBAs take about 2 years to complete. An accelerated or online program may take a year to 18 months.

What are the admission requirements for an MBA?

Admission requirements vary between MBA programs. Applicants often assume they have to sit the GMAT or GRE test to gain admission, but that’s not always the case. Many online and executive programs don’t require standardized test scores. Instead, they focus on work experience, professional recommendations, interview responses and other such factors when considering an application.

Demonstrable leadership skills and business experience can help with your MBA application more than test scores or even grades, but undergraduate grades do factor into the equation. All MBA programs stipulate an undergraduate degree, and many have a minimum GPA requirement. However, your bachelor’s doesn’t have to be in business. Many programs accept students from other backgrounds like communications, political science, health sciences, or technology.

Importance of interviews and recommendations

Personal interviews are an important factor in MBA program admissions. According to a survey by the Graduate Management Admission Council, the organization that administers the GMAT exam, traditional 2-year programs place more emphasis on the interview than test scores or undergraduate transcripts. Executive programs give test scores 8% weight, while the interview accounts for 30%. In the admissions process for traditional MBA programs, the interview receives 21% weight, and test scores 20%.

Letters of recommendation are equally important. Most programs require applicants to submit letters from a third party such as a supervisor, professional colleague, or other connection. This allows admission advisors to get to know the candidate on a more personal level. Recommendations from alumni may be beneficial when applying to highly competitive programs. Some provide templated letters, meaning that respondents answer the same questions.

Other things to consider

There is more to selecting an MBA school than admission requirements and program structure. For example, if you are currently unemployed or need to leave a job to complete the MBA program, make sure you attend a school that offers robust job placement services.

Also, consider the specializations and concentrations the programs offer. While some programs include standard curricula in business administration, others feature specialized courses that allow you to hone your skills in a specific area.

MBA careers

Earning your MBA opens up many career opportunities in the business world, including roles such as top executive, financial manager, and budget analyst.

Some MBA graduates enter managerial roles in nonprofit organizations, government, healthcare, higher education, technology, or the public sector.