Masters of Business Administration programs saw an increase in the number of applicants at N.C. State and colleges across the United States last year, for the first time since the recession.
The Graduate Management Admissions Council, which oversees the Graduate Management Admissions Test required for business schools, released its annual application trends survey last month. GMAC surveyed 683 programs from 328 graduate business schools and faculties worldwide and found that a majority of full-time MBA programs worldwide reported stable or rising applications. This has not happened since 2009.
Pamela Bostic, the director of the MBA program at N.C. State, said that economic troubles have undoubtedly impacted MBA programs nationally.
“Oftentimes in a recession, if people are laid off or not making progress in a career, you will see an increase in applications, since going into a full-time program can be helpful to develop new skills and knowledge,” Bostic said.
A full-time MBA program takes two years to complete and costs about $40,000 for in-state residents at N.C. State, while costing out-of-state residents $65,000.
However, interest in flexible and part-time MBA programs is declining, according to the GMAC survey.
According to Bostic, a part-time MBA program at N.C. State can take about six years to complete. Bostic said part-time programs are generally popular among working professional students who don’t have time to enter a full-time program.
According to Bostic, economic difficulties have led to a decline in part-time MBA programs.
“Employers cut back tuition reimbursement and have been demanding more of their employees’ time,” Bostic said. “They are either offering training that’s specific to jobs in their company rather than valuing a general MBA program.”
Bostic said the return on investment also decreased for MBA programs because of the prolonged economic problems. Still, the return on investment is cyclical, and the degree will again regain its value, she said. “This recession has been so long that people are reluctant to leave a job not knowing if they graduate, will their salary be such that it compensates for their lost income,” Bostic said. “If it’s a long economic recession, that’s when people become leery and ask ‘will the recession have ended when I graduate and will I get a job when I graduate to make up for the lost income?’”
Christine Ferrell, director of marketing of the MBA program at N.C. State, said the University has avoided the national dip in applications during the past four years. According to Ferrell, N.C. State MBA applications increased for both part-time and full-time programs. Additionally, after three months of graduation, about 90 percent of graduates had job offers.
“This year marks a modest increase in applications to full-time MBA programs, from 267 in 2012 to 299 in 2013,” Ferrell said.
Currently, there are about 100 full-time students and about 325 part-time students in the MBA program at N.C. State. The program started 11 years ago and has expanded greatly since, Ferrell said.
“Our program focuses on the management of technology,” Bostic said. “This important differentiating focus is critical to students in their job search, and is attractive to employers now and into the future.”
Farrell said high-quality education was a key element of the University’s MBA program.
“We prepare students to hit the ground running by providing a practical education, and our tuition is value-priced,” Farrell said. “As a result, a recent MBA class reported an estimated payback period of about 5 1/2 years.”
