4 ms·

> is there a big difference in salary afterwards? Yes, if you're good and that's what you want to do. I know someone who knows someone who went to UC Irvine (n

by dj_axl 15y ago

> is there a big difference in salary afterwards? Yes, if you're good and that's what you want to do. I know someone who knows someone who went to UC Irvine (not one of the top 10) and got a $40,000 signing bonus, which on average wipes out a UC Irvine MBA's outstanding debt.

randomdata 15y ago
Don't forget about opportunity cost. Even at minimum wage, you would have made $80,000 by working a full time job instead of going to school, assuming a four year program. If his tuition costs were an additional $40,000, you would need a $120,000 (plus any gains that could be accumulated from that $120K) bonus to recoup the expenses. Not to mention that if you really are good, you probably would have made far more than minimum wage during those four years, so we could probably assume, even conservatively, $150-$200,000 for the real cost of the education. Can a graduate expect to earn $200K more in the all important early stage of the career† over someone who is equally skilled and connected without a degree? † Early stage being the most important time to collect due to the rules of compounding interest. An extra $200K made in the last year of your career is far less valuable.
- ylem 15y ago
  Aren't some people doing this as evening courses--given the state of the economy? If so, the opportunity cost is wiped out--it's more a question of the debt amount, relative to the salary increase....
  - randomdata 15y ago
    It is still lost opportunity. If you have the drive and desire to work hard in the evenings, you could just as easily pick up another job instead of going to school, bringing us back to square one. Some things are more important than money. I enjoy learning new things as much as the next guy, so I often value education above income. However, I am not sure it is a wise choice if money is your only motivator.
- FelixP 15y ago
  |assuming a four year program. Virtually all full-time MBA programs are two-year programs. Here's an example of the math a prospective MBA student might consider: Current cash comp (incl. bonuses) = ~$120k/year Length of program = 2 years ------------------------------ Total expected comp lost for next two years = ~$240k (figure $160k after taxes) Tuition = ~$60k/year Living expenses = ~20k/year ------------------------------ Total two-year costs = $160k Internship earnings est = $20k ------------------------------ Total two-year net impact = ~$380k ($300k after taxes) (Note that this doesn't factor in things like student loan interest)

by dj_axl 15y ago

randomdata 15y ago

Don't forget about opportunity cost. Even at minimum wage, you would have made $80,000 by working a full time job instead of going to school, assuming a four year program. If his tuition costs were an additional $40,000, you would need a $120,000 (plus any gains that could be accumulated from that $120K) bonus to recoup the expenses. Not to mention that if you really are good, you probably would have made far more than minimum wage during those four years, so we could probably assume, even conservatively, $150-$200,000 for the real cost of the education. Can a graduate expect to earn $200K more in the all important early stage of the career† over someone who is equally skilled and connected without a degree? † Early stage being the most important time to collect due to the rules of compounding interest. An extra $200K made in the last year of your career is far less valuable.

ylem 15y ago
Aren't some people doing this as evening courses--given the state of the economy? If so, the opportunity cost is wiped out--it's more a question of the debt amount, relative to the salary increase....
- randomdata 15y ago
  It is still lost opportunity. If you have the drive and desire to work hard in the evenings, you could just as easily pick up another job instead of going to school, bringing us back to square one. Some things are more important than money. I enjoy learning new things as much as the next guy, so I often value education above income. However, I am not sure it is a wise choice if money is your only motivator.
FelixP 15y ago
|assuming a four year program. Virtually all full-time MBA programs are two-year programs. Here's an example of the math a prospective MBA student might consider: Current cash comp (incl. bonuses) = ~$120k/year Length of program = 2 years ------------------------------ Total expected comp lost for next two years = ~$240k (figure $160k after taxes) Tuition = ~$60k/year Living expenses = ~20k/year ------------------------------ Total two-year costs = $160k Internship earnings est = $20k ------------------------------ Total two-year net impact = ~$380k ($300k after taxes) (Note that this doesn't factor in things like student loan interest)