MBA Costs

As you know, an MBA costs money...often a lot of money. When it comes to costs, most people immediately think of tuition and fees. However, there are more costs involved than you may realize.

• Tuition and Fees - These are the most visible costs involved with the MBA. There is a certain fixed fee associated with attending the program. Many universities will have different tuition and fees for in-state students versus out-of-state students. The in-state tuition is usually lower to favor local students. Some programs have a fixed rate regardless of residency. This is often true of distance MBA programs. There can also be a different rate based on the type of program (full time vs. part time).

• Books and Supplies - These MBA costs are visible, yet often overlooked. Books at the graduate level often cost even more than at the undergraduate level. Other supplies usually include a laptop. Certain other expenses may be charged if your program is technology intensive.

• Travel or Relocation Expenses - Look at the costs involved with "getting to class". Relocation may be a big expense. On the other hand, if distance learning is involved, this expense could be very minimal. Keep in mind, though, that some distance programs require residencies. The cost of travel to these sites is not typically included in the tuition. Just traveling to and from class can add up over multiple terms.

• Opportunity Costs - Simply put, this is the cost of giving up the next best opportunity. The most common opportunity cost is when pursuing an MBA eliminates some or all of your ability to work and produce an income. This is often most acutely felt with full time programs (one and two year). There is a cost associated with not working. It is the loss of the income you would have made.

• Living Expenses - The biggest costs for anyone are usually living expenses. Those expenses do not go away during an MBA program. Where employment is maintained, this is not as big of an issue. However, due to other costs and debt incurred, you may want to look at toning down the living expenses during your MBA program.

Although MBA costs are often high, the return on investment can be high also. The high return is one of the main reasons people pursue an MBA in the first place. If the numbers make sense, the cost of an MBA should be viewed as an investment.

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