Many students seek out education before entering the workforce; however, MBA reimbursement for tuition may be a route to consider. Companies that offer on-the-job tuition reimbursement for classes or education tend to require that classes are directly related to the employee’s job.
Tuition Reimbursement Opportunities Differ
All employers do not provide tuition reimbursement for MBA programs and companies that do usually offer different levels of coverage. Upon locating a company that offers tuition reimbursement, it’s essential for a job applicant to confirm the details of that program and not assume that all costs are covered.
For example, a company would likely offer assistance on tuition but might not provide funds for room and board. Additionally, the amount of reimbursement on MBA tuition could be capped at a certain amount or percentage. A company might commit to covering 75 percent of a student’s tuition bill plus the cost of books.
Alternative Funding for Higher Education
According to the National Center for Education Statistics (NCES), the cost of college tuition has increased from an average of $7,759 during the 1980 to 1981 school year to an astounding $31,395 for the 2010 to 2011 school year. Adjusted for inflation, those numbers represent the averages of all schools including public, 2-year, and 4-year universities.
The cost of an MBA diploma could be incredibly expensive, depending on the college. Some ivy league schools charge upwards of $100,000 per year for an MBA, which is no small investment for the average student.
Gauging the Value of an MBA
The value of a 4-year degree often depends on the industry, job market, and economy. Debate over whether an MBA is valuable has become a hot topic for conversation due to the “Great Recession” and the inability of some college graduates to find work in their field.
A recent survey conducted by the Graduate Management Admission Council (GMAC) regarding the likelihood of employment after graduation suggested that 86 percent of graduates in 2011 were employed after receiving a diploma.
Although that means that 14 percent of graduates didn’t find work immediately, the survey also suggested that three-quarters of students wouldn’t have found their job without the addition of an MBA to their educational experience.
Common Features of MBA Reimbursement
Getting a tuition reimbursement often requires some effort on the part of the employee, but the lengthy application process is certainly worth it if tuition is paid in full or in part. Employers who provide tuition assistance will often require employees to make a pitch or application to the company.
This means an employee must convince his or her employer as to why tuition reimbursement would be a valuable investment for the company. Additionally, if the employee receives tuition reimbursement or assistance and decides to leave the company, that funding might need to be repaid.
Expensive Tuition and Reimbursement
One of the best reasons to seek out an employer that offers MBA reimbursement is because advanced college education often places an extra financial burden on a student who might already have loans from undergraduate school.
Students who wish to obtain an MBA might decide to hold off on that valuable degree because of the cost. MBA reimbursement increases the likelihood that an MBA would be in reach, financially.