What is a B school?
In finance, the term “B-School” is a shortened term that refers to schools that specialize in business subjects. These include both undergraduate universities and graduate schools. The best known B-School offering is the Master of Business Administration (MBA) program.
B schools are known for their highly competitive admissions standards, with the most sought after schools regularly rejecting more than 90% of applicants. These schools have also been the subject of debate in recent years because of their substantial financial costs (some B schools’ tuition can exceed $ 100,000 per year).
- “B-School” is a shortened term that refers to colleges that offer business degrees.
- The B-Schools offer undergraduate and graduate programs, although their most famous programs are the Master of Business Administration (MBA) programs.
- B schools can differ greatly in terms of their national and international rankings, and in terms of their costs of attendance.
Topics of study in schools B
B-Schools are similar to other postsecondary institutions of higher education except that they focus on subject areas related to business and finance. Common examples include accounting, finance, marketing, and entrepreneurship. In some cases, schools will offer specialized programs in less common areas of study, such as actuarial science or tax law.
As with other institutions, there are various rankings that aim to help students assess the quality and prestige associated with specific schools. These include rankings published by The Financial Times, The Economist, Y Businessweek, among others. Although the exact location of schools changes from year to year, examples of schools with consistently high rankings include Stanford Graduate School of Business, Booth School of Business at the University of Chicago, London Business School, Harvard Business School and Wharton of the University. University of Pennsylvania. College.
Although schools in the upper echelon of the international B-School rankings will excel in multiple areas, they are often known to have certain areas in which they are particularly strong. For example, the Wharton School is known for its excellence in finance, while Harvard Business School is known for its general managerial education.
Financial cost of attending B schools
In addition to considering the prestige and areas of expertise of each B-School, it is also important for prospective students to carefully weigh the costs of attendance against the potential benefits of earning a B-School degree. After all, attendance costs can run as high as $ 100,000 per year for elite B schools, and even less prestigious schools will routinely cost more than $ 50,000 per year. For many students, this will require incurring substantial student debt. Student debt can be a burden on a student’s financial life for many years or even decades after graduation.
Pros and cons of B schools
Given the brand recognition of famous B schools like Harvard Business School and Stanford Graduate School of Business, it can be tempting to think that these schools should be a priority for any student who might get into them. However, once total costs of attendance are factored in, other B schools may seem more attractive in comparison.
For example, student loan refinancing company SoFi published a ranking of B-Schools in 2018 that aimed to show the best return on investment (ROI) of those schools’ MBA programs. The analysis was carried out by comparing the average salaries obtained by its graduates with the average levels of student debt of those same graduates.
The results of this analysis showed that the highest ROI among the surveyed schools was offered by the University of Wisconsin-Madison, which offered an average salary-to-debt ratio of 2.33. In contrast, the salary / debt ratios for Harvard Business School and Stanford Graduate School of Business were given as 2.21 and 2.18, respectively.
For context, the average salary-to-debt ratio for all B schools was found to be approximately 1.5, with an average salary of just under $ 110,000 and an average debt level of approximately $ 75,000.