{"id":33888,"date":"2016-07-25T02:41:37","date_gmt":"2016-07-25T09:41:37","guid":{"rendered":"https:\/\/gmatclub.com\/blog\/?p=33888"},"modified":"2016-07-27T15:33:18","modified_gmt":"2016-07-27T22:33:18","slug":"mba-debt-numbers-grow-embarrassingly-large","status":"publish","type":"post","link":"https:\/\/gmatclub.com\/blog\/mba-debt-numbers-grow-embarrassingly-large\/","title":{"rendered":"MBA Debt Numbers Grow \u201cEmbarrassingly\u201d Large"},"content":{"rendered":"

<\/span><\/p>\n

According to a <\/span>Poets & Quants <\/span><\/i>article<\/span><\/a>, graduating MBAs have more debt than ever, \u201cso much so that a record number of the leading business schools now decline to even share the embarrassing burdens they have put on their students.\u201d Combined, students who graduated last year from the top 10 U.S. business schools borrowed $317.4 million (just in graduate loans); six-figure debt is becoming the norm, at least at these top schools. In 2011, there were only two schools that reported this staggering six-digit debt; last year there were 13. <\/span><\/p>\n

Here are some highlights from the <\/span>P&Q <\/span><\/i>article:<\/span><\/p>\n

\u2022 At the higher end of the six-figure range, UPenn Wharton\u2019s<\/a> grads left school with an average debt of $122,370; at the lower end, UVA Darden grads were left with $100,083 in debt. <\/span><\/p>\n

\u2022 Wharton\u2019s class of 2015 borrowed about $47.5 million. Columbia\u2019s class of 2015 borrowed roughly $59.3 million. <\/span><\/p>\n

\u2022 Schools that no longer disclose their debt data include USC Marshall, Dartmouth Tuck, Columbia Business School, Georgetown McDonough, and Northwestern Kellogg. <\/span><\/p>\n

\u2022 Six of the 25 schools with the highest levels of student debt were public university business schools. MBAs from UCLA Anderson<\/a> averaged debt of about $88,654, about $5,000 more than the students at Stanford GSB. <\/span><\/p>\n

\u2022 One consequence of this rising debt is that MBAs are pushing off marriage. According to Dora Gicheva, an economist at UNC, the likelihood of getting married within seven years of graduating decreases by 3-4% for every $10,000 in debt that the person carries. <\/span><\/p>\n

\u2022 Another consequence: students are turning down acceptances at highly ranked schools to attend schools with lower tuition or where they were awarded more scholarship money. (The <\/span>AIGAC 2016 Applicant Survey<\/span><\/a> shows that 30% of applicants consider costs when selecting a program, and are subsequently turning to other types of programs other than the traditional two-year U.S. MBA programs.)<\/span><\/p>\n

\u2022 Some schools have kept their debt numbers down (relatively speaking) by offering more scholarship money. For example, only 47% of Stanford class of 2015 graduates and only 55% of HBS grads borrowed money, compared to a whopping 70% at Yale. <\/span><\/p>\n

\u2022 The average debt burden for graduates of UWisconsin\u2019s Business School in Madison was only $15,481, more than $108,000 less than the average debt at Wharton. Meanwhile, the median first-year compensation package for Wisconsin MBAs was $114,481, only $31,609 less than the Wharton grad salary. <\/span><\/p>\n

Here\u2019s the data from <\/span>P&Q<\/span><\/i> on the average amount of debt and percent of MBAs in debt at the top schools:<\/span><\/p>\n

\"Do<\/a><\/p>\n

(See original graph here<\/a>)<\/p>\n

\u00a0\"PF<\/a><\/p>\n

\"Accepted<\/a><\/p>\n

Related Resources:<\/strong><\/p>\n

\u2022\u00a0Making International Student Loans a Prime Investment<\/a>
\n\u2022\u00a0GMAC Releases Tool That Organizes, Compares & Explains Major Rankings<\/a>
\n\u2022\u00a03 Long Term Tips For Financing Your MBA Abroad<\/a><\/p>\n

This article<\/a> originally appeared on\u00a0<\/em>blog.accepted.com<\/a>.<\/em><\/p>\n

Applying to a top b-school? The talented folks at Accepted have helped hundreds of applicants get accepted to their dream programs. Whether you are figuring out where apply, writing your application essays, or prepping for your interviews, we are just a call (or click) away.<\/p>\n

Contact us, and get matched up with the consultant who will help\u00a0you\u00a0<\/em>get accepted<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

According to a Poets & Quants article, graduating MBAs have more debt than ever, \u201cso much so that a record number of the leading business schools now decline to even…<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,939,775,243],"tags":[47,536],"class_list":["post-33888","post","type-post","status-publish","format-standard","hentry","category-mba","category-accepted","category-admission-consultants","category-blog","tag-financial-aid","tag-financing-your-mba","entry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/posts\/33888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/comments?post=33888"}],"version-history":[{"count":1,"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/posts\/33888\/revisions"}],"predecessor-version":[{"id":33889,"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/posts\/33888\/revisions\/33889"}],"wp:attachment":[{"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/media?parent=33888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/categories?post=33888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gmatclub.com\/blog\/wp-json\/wp\/v2\/tags?post=33888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}