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Why do B-Schools deliberately underestimate the Cost of Attendance

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Joined: 21 Oct 2014
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Location: Colombia
Concentration: Finance, General Management
GMAT 1: 750 Q50 V42
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Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

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New post 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?

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Re: Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

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New post 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.

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Re: Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

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New post 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.

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

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New post 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.

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Re: Why do B-Schools deliberately underestimate the Cost of Attendance [#permalink]

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New post 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.

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Re: Why do B-Schools deliberately underestimate the Cost of Attendance   [#permalink] 20 Jun 2015, 14:06
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Why do B-Schools deliberately underestimate the Cost of Attendance

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