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The question of whether it’s worthwhile to obtain a Master’s in Business Administration (MBA) — an advanced and versatile degree that can help people ascend into management analysis and/or strategy roles — is a highly personal one without a real single objective answer. As usual with financial and personal decisions, the answer tends to be “it depends.”
Keep reading for some things to consider when deciding to pursue an MBA, pros and cons of getting an MBA, how much an MBA costs, and more.
Key Points
• An MBA can significantly boost your salary, especially if you attend a highly ranked program.
• Business school offers valuable opportunities to build connections with peers, faculty, and alumni.
• With an MBA, you may accelerate your career or pivot into new fields, as the degree builds management and leadership skills.
• MBA programs can be very expensive — tuition for top schools can exceed $150,000 — and many students graduate with significant debt.
• Students can consider refinancing their student loans to possibly qualify for a lower rate or lower monthly payment.
The Pros and Cons of Getting an MBA
Getting an MBA won’t be right for everyone, but it could be one way to advance your career. Here are some things to consider as you weigh the pros and cons of getting an MBA.
Pros to Consider
Earning an MBA can open the door to greater professional opportunities, financial growth, and long-term career flexibility. Here are the advantages of receiving an MBA:
Improved earning potential. An MBA degree may increase your salary. The average anticipated salary for MBA graduates entering the workforce is $85,842, according to the National Association of Colleges and Employers. A recent grad’s expected salary may be even higher depending on where a student gets their MBA.
But if you’re wondering if it’s worth getting an MBA from a lower tier school, consider that the average MBA salary for graduates with a degree from the 10 schools where compensation was lowest was just $60,576.
Keep in mind, though, that the top 10% of MBA grads earn more than $200,000 per year.
Expanded network. Business school can be a great opportunity to make friends and network with like-minded individuals. In addition to your peers in the program, you’ll engage with faculty and be introduced to a (hopefully robust) alumni network.
Career acceleration or transition. Successful completion of an MBA program can improve an individual’s career mobility. Coursework is often designed to encourage management skills, critical thinking, and other specialized skills, which can help prepare people for the workforce.
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Cons to Consider
While an MBA can offer meaningful benefits, it also comes with drawbacks that prospective students should carefully weigh. Here are some things to consider:
The cost. The average cost of an MBA program is $63,000 (total for two years), but top-tier universities may run up to $125,000 per year. With anticipated starting salaries sitting at $85,000 on average, prospective students need to weigh the expense of the MBA against their earning potential.
However, there are ways to mitigate the cost. You can pursue part-time programs or stagger your course load over a longer period of time so you can still be drawing a salary to offset the costs while you’re studying.
Time commitment. Getting an MBA in a full-time program can take two years. There are some accelerated programs that may allow students to complete their coursework in 12 to 16 months, though. Beyond the length of the program, MBA classes are no joke. The coursework requires commitment and diligence, so be sure you have the time to dedicate to classes.
Consider factoring in the application process when evaluating both time and cost. To apply for graduate school, schools may require GMAT™ scores, letters of recommendation, and more. Meeting the application requirements may take both time and money if you still need to take the required standardized tests.
How to Decide If an MBA Is Worth It for You
While an MBA can offer great potential for career growth, it’s definitely not the right choice for everyone. Be honest with yourself about why you want to pursue an MBA. Below are some considerations when it comes to deciding whether or not an MBA is for you.
Career Goals and Industry Expectations
Your long-term career goals and the expectations of your target industry should heavily influence your decision to pursue an MBA. In consulting, finance, or corporate leadership, for example, an MBA is often considered a valuable credential that can accelerate advancement or even serve as an entry requirement.
In other industries, real-world experience or specialized training may be more beneficial than another degree.
Opportunity Cost of Leaving the Workforce
When considering an MBA, it’s important to factor in the opportunity cost of stepping away from full-time work. Taking one or two years off means forfeiting income, delaying promotions, and potentially losing momentum in your career.
Beyond financial impact, time away from your role may also require an adjustment period when returning to the workforce.
Part-Time vs Full-Time MBA Considerations
Choosing between a part-time and full-time MBA program depends on your career stage, financial circumstances, and lifestyle. A full-time MBA offers an immersive experience, faster completion, and more networking opportunities, but requires pausing your career.
A part-time MBA allows you to continue working, easing financial strain and enabling you to apply new skills immediately — though it may take longer to complete and offer a less intensive campus environment.
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How to Pay for an MBA
Paying for grad school can feel overwhelming, but understanding your financing options can make the process far more manageable. From loans to scholarships to school-funded opportunities, there are several ways to reduce the cost of earning your degree.
Student Loans for Graduate School
Graduate student loans are one of the most common ways to finance an MBA, allowing you to borrow federal or private funds to cover tuition, living expenses, and fees.
Federal loans — such as Direct Unsubsidized Loans and Grad PLUS Loans — often offer flexible repayment options and protections like income-driven repayment or deferment. Grad Plus Loans, though, will no longer be available as of July 1, 2026, and students will need to rely on Direct Unsubsidized Loans and private loans.
Private lenders may offer competitive interest rates, especially for borrowers with strong credit, but typically come with fewer repayment safeguards. Exploring both types of loans and comparing interest rates, terms, and borrower benefits can help you choose the best option for your financial situation.
Fellowships and Assistantships for MBA Programs
Many MBA programs offer fellowships and assistantships that can significantly reduce the cost of attendance. Fellowships often provide partial or full tuition support based on academic merit, leadership potential, or professional achievement.
Assistantships may require students to assist with research, teaching, or administrative work in exchange for tuition reductions or stipends. These opportunities are competitive, but they can dramatically lessen your financial burden while providing valuable academic or professional experience.
Scholarships from Business Schools and Private Organizations
Scholarships are another key funding source for MBA students, and they can come directly from business schools or from outside organizations. Many institutions award scholarships based on merit, diversity, leadership, or industry interests, while private groups may offer aid tailored to specific demographics or career goals.
Some scholarships cover a portion of tuition, while others offer full-ride support, making them among the most desirable forms of funding. Dedicating time to research, apply early, and tailor your applications can increase your chances of securing scholarship assistance.
Employer Tuition Reimbursement Programs
Employer tuition reimbursement programs can be one of the most cost-effective ways to pay for an MBA, especially if you’re already working full-time. Many companies offer financial support to help employees advance their education, whether through partial reimbursement, full tuition coverage, or annual education stipends.
However, tuition reimbursement programs typically come with certain requirements and restrictions. Some employers only cover degrees that directly relate to your current role or the company’s long-term needs, and many require you to maintain a minimum GPA to stay eligible. It’s also common for companies to require a commitment to remain with the organization for a set period after completing your degree — otherwise, you may need to repay some or all of the funds.
It’s a good idea to ask your current employer if this is a benefit they offer, and then weigh the pros and cons as to whether this is a perk you want to take advantage of.
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Comparing MBA Program Types (Online, Executive, In-Person)
Understanding the different types of MBA programs can help you choose an option that fits both your career goals and your budget. Each format comes with its own cost structure, time commitment, and level of flexibility.
• Online MBA: Offers remote learning with lower overall costs, flexible scheduling, and the ability to continue working full-time.
• Executive MBA (EMBA): Designed for experienced professionals, often more expensive but structured for minimal career disruption with weekend or modular classes.
• In-Person MBA: Provides the most immersive campus experience, stronger networking opportunities, and access to on-campus resources, but typically comes with higher tuition and living expenses.
Program Cost Differences
The cost of an MBA can vary significantly depending on the program type. Online MBAs are generally the most affordable, with lower tuition and fewer additional expenses like housing and commuting. Executive MBAs, while more expensive, often come with employer sponsorship, which can offset the higher tuition. In-person programs tend to be the most costly due to comprehensive resources and a full campus experience, but they may also offer more financial aid options and scholarships.
• Online MBA average cost: $40,000
• Executive MBA average cost: $55,000
• In-person MBA average cost: $63,000
Flexibility and Work-Life Balance
Flexibility is a major factor when considering how to finance and complete an MBA program. Online MBAs generally offer the greatest adaptability, allowing students to watch lectures on their own schedules and balance coursework with full-time work or family responsibilities. Executive MBA programs provide structured flexibility, with classes concentrated on evenings or weekends to minimize disruption to professional life. In-person programs offer the least flexibility but provide the most immersive learning environment, which can be valuable for networking and hands-on experiences.
Evaluating your work commitments, lifestyle, and time constraints can help you choose the format that best supports both your education and personal well-being.
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The Takeaway
Deciding whether an MBA is worth it ultimately comes down to your goals, finances, and the career path you hope to pursue. For some, the degree offers a valuable boost in earning potential, professional credibility, and long-term opportunities. For others, the cost, time commitment, and uncertain return may outweigh the benefits.
If you decide that earning an MBA makes sense for you, there are ways to help cover the costs and develop a solid budget. You can explore all options, including scholarships, grants, and federal and private student loans, as well as refinancing your existing loans.
FAQ
What is the average cost of an MBA program?
The average cost of an MBA program in the U.S. ranges from $60,000 to $120,000, depending on the school and program format. Top-tier programs can exceed $150,000, while online and part-time options may be less expensive. Financial aid and scholarships can help offset these costs.
How much can you earn with an MBA?
Earning potential with an MBA varies widely, but graduates often see a starting salary between $85,000 and $125,000. On average, MBA holders can earn between $120,000 and $225,000 annually, depending on their industry and role.
Are there affordable or online MBA programs worth considering?
Yes, there are affordable and online MBA programs worth considering. Many reputable universities offer online options with lower tuition, flexible schedules, and quality education.
Can I work full-time while pursuing an MBA?
Yes, many MBA programs are designed for working professionals. Part-time, online, and executive MBA formats allow you to balance work and studies. These programs often offer flexible scheduling, evening classes, and accelerated options to fit your needs.
What types of financial aid are available for MBA students?
MBA students can access various financial aid options, including scholarships, grants, loans, and assistantships. Many business schools offer merit-based scholarships, and federal or private loans are available. Additionally, some companies provide tuition reimbursement for employees pursuing an MBA.
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