Is Recession Really boosting up the applications?

Question

So, in this economy, its hard to get a loan and harder to save in general. Is it really true that more students are going to apply for fall 2009 than expected due to layoffs and stuff?

Would you pour your savings into costly tuition during the recession?

What if it does not pay back as quick as you hope

Av · Answer

This has been true historically and the current GMAT statistics support the idea, but I've heard otherwise. I was at an info session for the FEMBA program at UCLA on Monday and they actually asked people to raise their hands if they thought it was a good time, bad time, or normal time to get an MBA. The results were pretty mixed, but it was definitely leaning towards the bad time more than the good time. A Part-Time program obviously yields different results than a Full-Time program though, because the applicants already have jobs. However, one could argue that Part-Time programs would see a greater increase in applications than Full-Time simply because people are less willing to take the financial risk of going full-time. It has certainly impacted my thoughts. I haven't committed to one of the other yet, but I'm much more interested in pursuing a Part-Time MBA (UCLA, Chicago, or Kellogg) with 80-100% tuition reimbursement than I was before. If the job landscape become more attractive in the next three years, I could certainly be swayed back to the FT boat.

Either way, you primarily compete with applicants of similar backgrounds. It's probably most competitive for former bankers right now.

Either way, you primarily compete with applicants of similar backgrounds. It's probably most competitive for former bankers right now.

riverripper · Answer

R1 here was up 19% over last year...last year (2007-2008) overall was up about 21% over 2006-2007 numbers. So kellogg should be around 6,000 applicants this year if the trend holds true.

sonibubu · Answer

Yale reported just a 4% increase in R1 apps compared to last year. Surprising.

nink · Answer

Many people are applying as security blanket.

Type 1: Planned for awhile to apply for MBA program
Type 2: Recently laid off or expect to be laid off
Type 3: Currently work in industry or company in danger of consolidation. Start application just in case

unhedged · Answer

a duke adcom said they haven't a boost beyond what they expected to be a normal increase in applications.

They also made the point that many people don't end up applying when they lose their job because they
a) don't have the time to because they are looking for a job
b) don't want to spend money when they aren't making any.

And a rise in GMAT, doesn't necessarily mean more applications this year. Taking the GMAT is a low investment proposition, r so I would imagine people do so to have the score, "just in case."

falibay · Answer

A Wharton adcom , once had commented that top MBA don't see an increase because of the economy but rather because demographic changes. For examples, the # of applicants from Asia has been increasing dramatically compared to others...

That would probably make senses that a decent portion of the increase is due to demographics and a smaller portion to the economy.

That would probably make senses that a decent portion of the increase is due to demographics and a smaller portion to the economy.

MJ2009 · Answer

Okay there r a few things we need to check before we can conclude whether the "Recession is Really boosting up the applications?" first off the historic/empirical evidence shows yes it has but this recession is no normal bearish momentum of the economy this is worse so does that evidence play out here? we dont know b/c this recession (some calling it depression) is being compared with the Great Depression. I dont know if the applications were boosted then but it is not really relevant now. secondly the reasons we know why applications increase in a recession do not hold strongly in current times: for the sake of argument lets use the types mentioned by ninkorn.

Type 1: yes many ppl had planned for a while but many r now backing-off as other priorities crop up and their savings vanished with such huge losses
Type 2: expecting the pink slip (or holding one) in these times makes u less likely to be incurring application costs (gmat, toefl, app fee) and especially so if u have dependents. i would guess ppl with a large or significant severance package wud be expected to apply only. One more big thing u need to see is the timing of the turmoil. this one has been quite close to the R1... so i doubt R1 can be a good measure, R2 will give some concrete data.
type3: yes these ppl will aim for part-time programs... in a time like now, i doubt u will be hearing anyone resigning or taking leave for a 2 years MBA. In fact the resignations/leaves as a percentage of employed ppl will significantly decrease.

That said... my guess u will even see a reduction in international applicants >>> dollar appreciation, credit issues etc!

Av · Answer

I can't disagree with you on that point, because that's exactly what I've done. I'm only 2 years out of undergrad, so I won't be applying until Fall 2009  or later.

liubhs02 · Answer

I found this article for 2004 linking slow economy growth to record low MBA applicants https://www.businessweek.com/bschools/co ... _bs001.htm Maybe we'll get lucky and have less competition.

MJ2009 · Answer

"'only'" 690!!! i thought it was a decent score...especially since Chicago Booth average now is 710...must have been lesser 4 years ago!

spiridon · Answer

He meant "only" in terms of getting a scholarship. 690 is a great score if u can pay from your pocket but if not then u will go whoever give u the best money offer i guess

Av · Answer

I wouldn't go to Purdue for free if I was eligible for top 15 programs, especially if I was accepted to an M7, and I have practically no savings. Of course, that's entirely dependent upon my personal/career goals.

Omne · Answer

You know what really tickles my nugget? Right now is the right time for me to get my MBA. I've got good experience, did decent on my GPA, could explain my poor UGPA. I'm ready to switch careers, I'm clear in my goals and what I want to accomplish, and I'm not shooting for the stars by applying to H/S/W or anything. But you know what? The recession, or the layoffs on Wall Street and throughout the banking world, may torpedo my attempt. I'm not from a feeder job or anything, and it scares me to think that even though the time is right for me, I may not get it because other people panicked and decided to apply now.

I feel bad for people like me who don't get in because of this surge in applications; who, in any other year, would be viable candidates for decent programs but get squeezed out. I feel for those from Wall Street/banking who now have an applicant pool of similar candidates that has doubled or tripled, making it much more difficult. I feel sorry for the adcoms and 2nd year student interviewers who must want to gouge their eyes out after reading the 175th application from a former CitiBank employee recently let go.

spiridon · Answer

Good post mate,...

Well....yeah I hope they will look for a diversity and kinda let other ppl in.

kryzak · Answer

posted this on the other thread.

Haas was up 15% total (20% in R1) from 2007 to 2008. This year R1 numbers seem to be another 15% up.

Nerdboy · Answer

My 2 cents: if you are able to pay for (a large part of) the tuition fees at a top school out of your pocket AND you are not a former investment banker, you have absolutely nothing to worry about. If anything, your chances are improving. However, if you are a poor international guy like me relying on loans, you have plenty to worry about.

Point is, the total number of applications may or may not be up, but more importantly a certain percentage of those admitted will not be able to attend. Or would adcoms reject certain applicants who are likely to have funding problems? No school will ever admit this, but being an old cynic I think it's possible.

Paradosso · Answer

Relevant article (though centered on graduate schools as a whole) here: https://insidehighered.com/news/2008/12/08/gre

riverripper · Answer

Just remember guys...applications go up but in general the number of people at each of the top schools stays relatively the same. So while there is a rise in application (and difficulty getting in) the number of people graduating is pretty stagnant. This means you enter now when things are terrible and graduate when things are better careerwise and you wont face the same competition.

Class of 2008 entered in 2006, many were planning their applications in 04-05. Do you think they were planning for what they would be facing now. Class of 2010 literally showed up right when the market dropped 40% and massive layoffs were happening. Last fall things were looking bad, yet we still came. By the time we graduate things should be turning around. You guys are applying when things are at their worst (hopefully) and will graduate into a much better economy.

Who do you think was happier with their MBA's the classes of 2001 and 2002 or the classes of 2004 and 2005? The first ones entered during the internet craze and graduated into the burst bubble. The others graduated into a great market, though I am sure lots of the bankers from those years are looking for employment again.

Nerdboy · Answer

Thanks for the link! It says basically that the volume of MBA applications this year behaves rather differently than that of other graduate programs. So, MBA degrees are perceived to be a better investment?

Is Recession Really boosting up the applications?

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