WSJ article: Business School? No Thanks
This is an interesting article. Turns out, applications to business schools have been declining for the last three years running. I remember the opposite was true when I entered business school. We were right at the beginning of the economic crisis (at least, the beginning as noticed by the general population). Most of the speculation about why applications were up centered on the newly unemployed looking to make the best of a bad situation. Made sense. Heck, it makes sense. So why the shift?
The current idea is that prospective b-schoolers aren’t so sure about the ROI of an MBA. What’s the use of taking on significant debt load if your prospects of landing a position that will let you take care of that debt load (and then some) are abysmal? Good question. Market uncertainty is always a killer.
Still, the reporter does point out a bright spot in the pessimism that’s causing the grad school down turn: less applicants means increased acceptance rates. But, you need to get while the gettin’s good. According to GMAC, the number of test takers is now on the rise again, and that number has been a leading indicator of future would-be MBAs tossing their hats in the ring.