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See the Average Debt, Starting Salaries for Business School Graduates

By U.S. News & World Report

An MBA can lead to a lucrative career in high-demand fields. Graduates of top-tier business schools usually earn higher starting salaries than their peers who went to lower-ranked schools — but often leave with more debt, according to U.S. News data.

Prospective students who want to attend a top school without taking on more debt than they can pay off can compare the average annual base salary for students who find employment soon after graduation with the average debt of graduates who borrowed for business school.

Many business school graduates earn bonuses and other forms of guaranteed compensation — which can help lighten the student debt load — but the charts below are limited to annual base salary.

[Learn about the business schools where most students get jobs after graduation.]

Fourteen of the top 20 ranked business schools submitted salary and debt information for graduates of full-time programs to U.S. News in an annual survey. Graduates who were employed three months after graduation at those 14 schools earned an average of more than $100,000.

The University of Texas’ McCombs School of Business, tied at No. 16 in the rankings, is the best bang for the buck. McCombs’ grads had the largest gap between how much students made after graduation and how much they owed in 2015. Students who were employed within three months after graduation in 2015 had an average annual starting salary of $113,787, and those who borrowed had an average debt of $62,525. Fifty-nine percent of McCombs 2015 graduates have student debt.

Students who borrowed to attend Duke University’s Fuqua School of Business, tied at No. 12 in the rankings, and Cornell University’s Johnson School of Business, No. 14, left school with nearly as much debt as they earned in a starting salary. The average starting salary for Duke graduates was $119,056 and the average debt $114,498. The average starting salary for Cornell graduates was $119,051 and the average debt $115,058. Sixty-one percent of Fuqua 2015 graduates borrowed for business school. Cornell did not provide that data to U.S. News.

[Plan ahead to get financially ready for business school.]

The chart below includes the average debt, annual base salary listed as the mean base salary, and salary-to-debt ratio for the 14 top-ranked schools that provided both salary and debt data to U.S. News for the 2017 Best Graduate Schools rankings. A higher salary-to-debt ratio is indicative of a better deal. Schools that didn’t submit the average debt of 2015 graduates who borrowed to U.S. News in an annual survey were excluded from the chart. The salary and debt data in this chart are correct as of July 20, 2016.

School (name) (state) U.S. News business school rank Average debt for 2015 graduates Mean base salary for 2015 graduates Salary-to-debt ratio
University of Texas–Austin (McCombs) 16 (tie) $62,525 $113,787 1.8
Harvard University (MA) 1 $79,667 $131,646 1.7
Stanford University (CA) 2 (tie) $83,762 $133,406 1.6
University of California–Berkeley (Haas) 7 $79,453 $123,403 1.6
Emory University (Goizueta) (GA) 19 $77,343 $113,295 1.5
University of California–Los Angeles (Anderson) 15 $88,654 $114,392 1.3
Carnegie Mellon University (Tepper) (PA) 18 $93,267 $115,253 1.2
University of Virginia (Darden) 11 $100,083 $119,819 1.2
Massachusetts Institute of Technology (Sloan) 5 (tie) $107,172 $126,316 1.2
University of Michigan–Ann Arbor (Ross) 12 (tie) $100,611 $118,274 1.2
University of North Carolina–Chapel Hill (Kenan-Flagler) 16 (tie) $93,898 $108,627 1.2
New York University (Stern) 20 $107,458 $114,863 1.1
Duke University (Fuqua) (NC) 12 (tie) $114,498 $119,056 1.0
Cornell University (Johnson) (NY) 14 $115,048 $119,051 1.0

Searching for a business school? Access our complete rankings of Best Business Schools.

More from U.S. News

10 MBA Programs Where Graduates Leave With the Most Debt

4 Ways Graduate Student Loans Differ From College Debt

Tackle Undergraduate Student Loans While in Graduate School

See the Average Debt, Starting Salaries for Business School Graduates originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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