Dilemma- where to go to school?

Question

Not too long ago I decided I wanted to get an MBA because I'd like to start my own business in the future and currently I know nothing of running a successful business. I never planned to go to one of the top schools and still don't. I started looking at different schools in Michigan because in-state tuition sounds way better to me than anything else. I decided I'd shoot for Wayne State University because it's not a hard school to get into and I could start in Fall '07 if I apply by July 1st. I scheduled my GMAT and was shooting for around 600 because that would pretty much guarantee my acceptance to the program at Wayne State (not a competitive school). 

Don't get me wrong, I knew I was smart, but after my test on Tuesday I was pleasantly surprised of my score. I got 710 (40 verbal and 47 quantitative) and 4.5 on the writing. I didn't expect a score this high and now I am looking for some advice.

With that score, I'm now feeling like Wayne State isn't good enough for me. I should be able to get into a better school. Although I am lacking on relevant work experience.

Does getting an MBA from a better school really help you that much? I could go to Wayne State, start in the fall, and finish in two years with an MBA. Or I could try to go to a better school (thinking of Michigan State University) in a year, spend more money, and get an MBA then. Also if I wait I can try to get more relevant work experience in the next year, but that probably wouldn't be on my applications anyway. Is it worth spending over twice as much money to go to a more recognized school? 

I feel a little like an MBA's and MBA, does it matter too much where it came from? Is the education you receive at a better school that much of a difference from the education at an easier program to get into?

Also, would I have a better chance at getting good scholarships in a less prestigious program?

If any one has any advice on what schools I should consider and when to go I would greatly appreciate it.

rhyme · Answer

Well, before I answer....

Is entreprenuership your immediate post mba plan - something you know you are going to do, or is there an intermediate step you had in mind?

empanado · Answer

Congratulations in your score. I'd kill to be in your shoes, and have an score that exceeds my target school. 

I think it is all about what you need the MBA for, for example, if you want to go into I-Banking, nothing short of the top 5 will land you a spot in a good firm, if you want to go into non-profit, do you really need to spend the $100K and go ultra-elite?

It's all about personal preferences, but I think that an ultra-elite school does not give you "better" education (after all, you could theoretically buy all the books and do your own MBA at home) but the added value is the network. Let's say 20 years down the road, your ex-class mates at Harvard, Wharton or Stanford will be (on average) more rich and powerful than your ex-classmates from <unknown>. 

Good luck with your decision.

kavet83 · Answer

I'm not entirely sure if I'll start my business directly after graduating or if I should wait a few years to pay off my debt and get some experience. Advice I'm getting is that the latter would be smarter.

pelihu · Answer

You do not need to go to a top 5 in order to go into I-Banking.

rhyme · Answer

I would tend to agree. In my personal opinion - and its just that - there is a lot of value in a top MBA education over a relative unknown. From the perspective of securing a quality job, a top mba will do that for you. Wharton, GSB, Kellogg, HBS, Stanford, Stern, etc - all, if you so choose, can set you up with $100,000 a year base salaries, $10,000 sign on bonuses (or more), and bonuses that can easily match (or even exceed) your entire salary if you go into certain industries. Not all jobs pay that high - but a top MBA education can pretty much guarantee you $120K total compensation first year in almost any industry (with maybe the exception of marketing and non profit).

So its a question of risk.... a lesser name MBA might open doors for you, it might not. A name brand MBA will. From an educational perspective, I agree - there isnt much difference. From a network and perceived (whether its warranted or not) prestige, there is a difference. If I was looking to be an entrepreneur (and I am) I would personally choose to go to a top school and spend a little money doing it - for two key reasons - the powerful network of peers in a variety of industries I will establish and 2 - the fact that I can mitigate a lot of risk by ensuring I have a good job lined up when I leave. 

That said, this is a very personal choice. A "lesser" (I use the quotation marks just to indicate I'm not saying it is lesser) school will likely gobble up a 710 score, and offer you a nice scholarship. Then again, so might a top school.... I know people with nearly full scholarships at the GSB and scores around 720-750. I also know people with 780's with no scholarship at all. 

There's only one way to find out....

kavet83 · Answer

Ok, I understand that a top program will benefit me more than an unknown. But I don't think I'm qualified to get into one of the top 15 schools. I may be good, but I'm not that good. I'm more interested in knowing if there's as much of a difference in a program like Michigan State (which isn't in the top 20, but is still a very good school with a competitive program) compared to Wayne State (which is pretty much an unknown with a very easy program to get into).

squali83 · Answer

It seems to me that the school's websites can answer your questions the best. They all should have employment reports. I can tell you that higher is not always better, but there is a huge value to prestige and networks the better ranked schools offer. I would advise you to research and pick schools that offer a program and job placement that appeal to you. Best of luck, and congrats on the score!

kavet83 · Answer

Thank you everyone so far for your posts! You're really helping me to figure out what I should do! This is a great website, so useful!

johnnyx9 · Answer

Agreed. You can get into i-banking from schools ranked in the 30s and 40s.

rhyme · Answer

You just scored in the ultra-elite ranges on the GMAT, don't sell yourself short

Forget for a moment what you think you can do - you didn't think you could get a 710 - but you did. So why is going to a top 15 out of the question? When I started my proccess, I figured there was little to no way - I could end up anywhere in the top 10. Today, I sometimes delude myself into thinking I might have pulled out an HBS admit if I'd done that application last rather than first. Confidence seems like an unnessecary barrier to sucess sometimes. So as I say - forget for a moment what you think you can do and just think about what you want to do. Let that guide you. My primary point is this - I would have rather tried and failed than to have never tried at all. I never want to be that guy that keeps saying "What if?".

3underscore · Answer

Even though I didn't really want to go there, I do wonder a little about "what if I had applied..." on Harvard.

And starting earlier.

And not having interviewed with such a disaster alumni for GSB.

And whether this is the right decision.

With a 710 you should pick out at least one top school you think fits with your dreams and apply. If there isn't one that does that, go wherever does.

After all, the whole experience is about you, not ranking tables.

riverripper · Answer

One thing to keep in mind is that even if you know for sure you want to start your own business working for a couple years post MBA to pay down debt and save up some money for when you start your own business. Also by working for a few years you will get to put your knowledge gained in school to practical use and you can get some experience (and make some mistakes) with someone else paying you and providing you a good support system.

Also going to a top school will give you a much better network seek advice from, to provide you contacts in the business world, and also provide you access to people who may invest in your idea...if its a great idea and will make money then coming from a top program will only definitely help you find investors. Figure if you go to an elite school some of your classmate will be working in venture capital and their jobs will be to find companies to invest in. Plus you may find people in school to start a company with and your more likely to find highly skilled and driven people possible at a top school.

kavet83 · Answer

I thought maybe I should clarify some of my additional information as it might change the advice that I could get into one of the top schools. I am almost 24 and female. My undergrad is in recreation management. I graduated in 2005 but haven't really been in the workforce. I did an internship as part of my graduation requirements, but then I came to watch my niece full time (basically a nanny) for the last two years. I have a part time job right now with a shipping company. So I have no real business work experience or any leadership work experience. Also, I don't think I could justify the expense of a top school because family is very important to me. Being a woman, after I get married, I would rather not work and just do the stay at home mom thing. So while I would like to use my MBA after graduation, and hopefully run a successful business, I don't necessarily plan on always being in the workforce.

johnnyx9 · Answer

Without work experience I think you'll have a LOT of trouble cracking the Top 30 schools. If you plan on being a stay-at-home mom then I don't think you would recoup the cost of going to a top school anyways.

For someone with entrepreneurial aspirations I think an MBA from a non-top school will serve your needs just fine. With your high GMAT score I imagine you can get a decent scholarship as well.

Best of luck!

kavet83 · Answer

Thanks so much! That's kind of what I've been thinking as well.

gmatclb · Answer

You're still young. Why don't you try to get a full-time job in the corporate world doing whatever comes your way.

And then in 1-3 years, reevaluate the MBA path. Your GMAT score is good for 5 years.

MoonShine · Answer

I agree with gmatclb on this. Get some WE, extra-curriculars, then re-apply after 2 years, you will potentially be able to crack the top10 - and being female helps; due to the avg 70/30 split between males and females; top schools look keenly on females.

haddy74 · Answer

Why are you guys suggesting/forcing her to do something that she is not willing to do? Didn't she say that family is very important for her and that after she gets married, she would rather not work and just do the stay at home mom thing. As Cliché as it sounds, but being an older candidate, I have learnt first-hand that the most important thing in life is to be dead honest with your inclinations/preferences and then chose a path that suits best to your personality. Her talent is obviously not questionable with a solid GMAT score, the real predicament for her is either to spend some money and get a respectable MBA (No M7 and all that crap) say from Michigan State and or go for a less-than-respectable MBA to save money and eventually move on with her personal life.

 I know Wayne State really well as one of my close friends is finishing his masters in civil engineering there. I do not want to disappoint but Wayne state is pretty low-ranked school with miserable facilities and sketchy/shabby surrounding area. I also believe that Michigan State and Wayne State tuition fee for an MBA program should not be significantly different considering both of them are state universities. If you are Michigan resident, the tuition fee should be pretty much the same. But without any doubt, Michigan State MBA would be far better than Wayne State both in terms of learning environment and network connections. I would say apply to both schools executing your application in a best possible way stating clearly why mba and why that particular school and then wait for results. Being a female and with 710, I am sure you may get full scholarship at Wayne State and an admission to Michigan State. If you get both, go for Michigan State and pay money. Just my 2 cents and good luck.

kavet83 · Answer

Thank you so much everyone for your input and advice. Haddy74, especially a big thanks to you, that is what I wanted to know. I have decided that I'm not going to even apply to Wayne State. I can do better than that. So from now on I'll be researching a ton of schools (not top 20 probably, but good schools) and figuring out where I want to apply to. I'll get my apps ready for the first round and see what comes. Again, thank you everyone, you've really helped in this decision making process! I'm really glad I found this site!

Dilemma- where to go to school?

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