GMAT Changed on April 16th - Read about the latest changes here

 It is currently 25 May 2018, 01:52

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Why do B-Schools deliberately underestimate the Cost of Attendance

 new topic post reply Update application status
Author Message
Intern
Joined: 21 Oct 2014
Posts: 11
Location: Colombia
Concentration: Finance, General Management
GMAT 1: 750 Q50 V42
GPA: 3.2
WE: Corporate Finance (Other)
Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

### Show Tags

28 Apr 2015, 21:51
We have all heard many times that what an MBA program states is the cost of attendance is usually vastly underestimated (different sources say that it may be 10-30%)

Would like to understand why business schools do this. What do they achieve by underestimating this?
Intern
Joined: 02 Nov 2014
Posts: 23
Re: Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

### Show Tags

29 Apr 2015, 08:26
To be honest, it is impossible to estimate how each student will spend their personal expenses. The only guaranteed costs that the B schools can provide are tuition, school fees, and dorm housing rates if applicable, the rest of the expenses are such a wildcard with food, living, and trips that it'll be tough to provide an accurate estimate.
Director
Joined: 20 May 2013
Posts: 600
Location: United States
Concentration: Strategy, Finance
GMAT 1: 750 Q49 V44
Re: Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

### Show Tags

26 May 2015, 23:10
I felt like Kellogg's was very accurate. I drink and travel constantly, and I'm still under budget. If you go to school in NYC I can see how this changes though.
Current Student
Joined: 30 Jan 2010
Posts: 301
Location: United States
Concentration: Strategy, Economics
Schools: Chicago Booth - Class of 2015
WE: Project Management (Real Estate)
Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

### Show Tags

01 Jun 2015, 22:50
mgg234 wrote:
I felt like Kellogg's was very accurate. I drink and travel constantly, and I'm still under budget. If you go to school in NYC I can see how this changes though.

I mostly agree. With nights out and weekend trips, Booth's is pretty close. A few big treks were funded out of savings and internship salary though. But those are completely discretionary, so shouldn't be in the Cost of Attendance.
Intern
Joined: 01 Sep 2013
Posts: 2
GMAT 1: 720 Q47 V41
Re: Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

### Show Tags

20 Jun 2015, 14:06
INSEAD was pretty accurate too. I tried to save and my overall costs were 30-40% cheaper than what was stated. Even after adding all the travel expenses it was still cheaper than the stated average, in my case.
Re: Why do B-Schools deliberately underestimate the Cost of Attendance   [#permalink] 20 Jun 2015, 14:06
Display posts from previous: Sort by

# Why do B-Schools deliberately underestimate the Cost of Attendance

 new topic post reply Update application status

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.