How Much Does an Online MBA Cost?
Published August 19, 2024
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Business schools often tout online learning as a cost-saving alternative to traditional attendance. Data generally supports these claims — according to the NCES Data Lab, the average MBA student paid $17,058 in tuition and required fees in 2020. After filtering specifically for online programs, that figure fell to just $4,964.
Beyond tuition savings, factors like relocation and transportation can further reduce the average online MBA cost. As an online student, you can attend virtually any school without moving. Many online MBA programs also have no campus residency requirements, which eliminates travel, transportation, and parking from your budget.
Note that online MBA costs vary widely, and some programs approach or even exceed the costs of face-to-face alternatives. School prestige is a major factor, as some MBA programs more readily lead to appealing, high-paying jobs.
When you earn an MBA, you make an investment in your future. This student financing guide can help you find an ideal path to a program that meets your needs.
Popular Online MBA Programs
Learn about start dates, transferring credits, availability of financial aid, and more by contacting the universities below.
Delivery Format Factors
Compared to campus-based programs, online MBA costs are often significantly lower. Hybrid MBAs balance the convenience of online learning with the networking advantages of a traditional campus. However, they may not offer the same dramatic savings as 100% online programs.
Business schools generally spend less administering asynchronous online courses, and they may price their MBA programs accordingly. Unlike synchronous online classes that meet in real time, asynchronous courses use pre-recorded lectures. Schools can reuse these lectures to reduce time burdens on faculty members and save money.
Credit Loads and Timelines
Some business schools charge tuition on a per-credit basis, while others calculate their rates per semester or year. You can also find MBA programs that charge flat fees for the entire program.
Depending on your school's pricing structure, you might be able to reduce your costs through strategic planning. For example, if the school charges fixed rates per semester or year, you might be able to overload your course schedule to achieve savings.
Geographic Influence
Public institutions typically cost less than private schools. However, remember that public schools may offer lower tuition to in-state students while charging non-residents higher rates. If you study at a public school as an out-of-state student, your online MBA costs may rise.
The reasoning for these tuition policies arises from public colleges receiving state funding through taxes. When you pay state taxes, you contribute to your state's higher education network. In a public school's view, this entitles you to lower tuition rates, while non-residents who have not paid into the system must pay more.
Private schools usually fund their operations through tuition and endowments, charging all students the same tuition fees, regardless of their state residency.
Additional Online MBA Fees
Pursuing an MBA requires students to invest money, time, and energy. The total cost of an MBA includes more than tuition alone. Most schools charge application, registration, and graduation fees, among other costs. Online students are often exempt from facility or library costs but may pay designated online fees. Also, enrollees may have to cut back on work hours or find a lesser-paying job that offers more flexibility for studies, which could mean a reduction in income.
An MBA requires a sizable investment of time and money, and prospective students should weigh the costs and benefits before enrolling. Although the investment is significant, the advanced degree and business knowledge typically improve professional opportunities for graduates.
Students should look for an accredited MBA program, which ensures the program meets rigorous standards. Prominent accreditation agencies that evaluate MBA programs include the Accreditation Council for Business Schools and Programs, the International Assembly for Collegiate Business Education, and the Association to Advance Collegiate Schools of Business. Many employers consider the accreditation status of each candidate's school. Earning an MBA from an accredited institution ensures your investment will position you to pursue advanced professional opportunities.
Ways to Save on Your Online MBA
While online MBA programs are often cheaper than on-campus programs, they still create a significant financial investment. However, online learners have many options to save on costs. The following sections outline ways online students can reduce expenses.
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Accelerated Degrees
Earning an accelerated MBA opens up the possibility of pursuing some of the highest-paying MBA jobs while saving money on tuition and related expenses. Students in accelerated programs have the opportunity to earn their degrees more quickly by taking more credits per term or enrolling year-round. By earning a degree in less time, learners can pay fewer per-term fees and reduce total living expenses. For students who work fewer hours or quit their jobs while pursuing degrees, graduating more quickly reduces the amount of time they're earning lower or no wages. Learn more about accelerated MBA programs. -
Attend In-State Public Universities
To save money, students can consider in-state and public universities. Many schools offer discounted tuition rates to state residents, most often when the school is funded by the state's taxpayers. The average cost of MBA programs is typically lower at public universities. -
Consider More Affordable Programs
Increase your earning potential through an online MBA program that will not break the bank. Explore the most affordable online MBA programs. -
Work While Taking Classes
Attending a part-time MBA program while working can significantly offset program costs. Balancing school and work can be exceedingly difficult, especially when attending an on-campus program. Choosing an online MBA program can make holding a job much more feasible. Coursework is often available asynchronously, allowing students to complete coursework according to their schedules. -
Make Payments on Loans While in School
Many students take out loans to finance their MBAs. Federal loans are a popular option, as they tend to offer lower interest rates. However, because these loans are generally unsubsidized, interest begins to accrue while in school. Remaining employed while pursuing MBAs allows learners to begin repaying their loans before graduation.
Questions About Online MBA Costs
How much does an online MBA cost?
According to NCES Data Lab figures from 2020, MBA students at schools offering fully online degree programs paid an average of $4,964 in annual tuition and required fees. However, costs vary according to many factors, including school prestige, institution type, and the student's state residency status.
Is an online MBA worth the money?
Online MBA programs often generate positive returns on educational investments, even for students who attend costlier business schools. MBA degrees can lead to high-paying jobs, giving graduates access to career paths that pay dividends for many years to come.
Will an MBA increase my salary?
The jobs available to MBA graduates often pay more than those held by professionals with non-MBA master's degrees. In August 2024, Payscale listed the average MBA degree-holder's salary at $94,000.
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