Applications to Master of Business Administration programs in the US have fallen for a third straight year, prompting business schools to take a hard look at their programs.
Once a requisite for careers in finance and management consulting, the MBA has lost its appeal in recent years as fewer employers are helping to cover the costs, causing a generation of students soaked in student loan debt to stay put in the workforce.
While elite private programs like Harvard and Stanford are still attracting applicants, public schools are finding it much harder to entice students.
Back in August, the University of Iowa’s Tippie College of Business announced plans to close, and the University of Wisconsin’s School of Business claims it may not be far behind, despite ranking amongst the top public-university business programs in the country.
Simply put, MBA degrees aren’t the shortcut to higher earnings that they once were.
Nearly 200,000 students have obtained an MBA every year since 2010. Which means the market is f-f-flooded — and having the title on your CV doesn’t automatically get you the job like it used to.
Even if it did, 20% of business school graduates report that their degree did not improve their earning power. Pretty lame, considering that some MBA programs cost upwards of $100k.