Known for its high MBA salaries and affordable tuition, the Foster School of Business ranked #23 among the Forbes Best Business Schools for return on investment. Foster was notable among the top 25 schools for fast ROI (just 3.8 years to pay off the degree) and reported the second-lowest tuition. Forbes examined more than 100 schools and reached out to 17,500 alumni worldwide. Just 61 schools in the U.S. were ranked.
$95,000 increase in Foster MBAs’ average salary 5 years after graduation
Foster graduates who started the program with an average $70,000 salary reported an average salary of $165,000 five years later. Forbes reports, “Our survey of alumni indicates that a degree at a leading business school is still incredibly valuable and pays for itself in roughly four years.” Across all programs, earnings increased 10% annually since graduation.
Forbes rankings are based on the career outcomes of the class of 2014. More recent Foster MBA graduates have benefited from increasing job placement rates (99.1%) and rising salaries (average salary and bonus of $147,763). According to incoming assistant dean for MBA Programs, Wendy Guild, “Foster has continued to execute on a market-oriented strategy of aligning our programs with the needs of employers, drawing and retaining world-class faculty and staff, and investing in a best-in-class professional development program. This has attracted excellent students who go on to perform well at key employers. These employers, in turn, continue to seek out our students and provide competitive compensation packages.”
Average debt not factored into ROI calculations
While Forbes’ ROI formula includes an adjustment for cost of living during MBA study, it does not account for the burden of student debt that takes graduates many years to pay off. The ROI ranking uses a methodology to calculate 5-year gain that subtracts tuition, fees, and foregone earnings from 5-year total compensation. According to Forbes alumni surveys, the median debt load across MBA programs was $80,000. Of the Forbes ranked business schools that provided average debt data to U.S. News & World Report, there were only five schools in the Forbes top 25 with average debt loads below $90,000.
The epic climb continues
Poets and Quants recognized Foster among the schools with the highest ascension in the Forbes Rankings on the basis of the school’s 7 spot improvement from the previous ranking. Since 2003, Foster has moved up in the Forbes Best Business Schools Ranking from 49 to 23. This mirrors Foster’s astonishing rise of more than 94 spots across U.S. News and World Report, Bloomberg Businessweek, and The Financial Times since the year 2000. What has fueled this epic climb? The learning experience, faculty, and culture of the school are all integral to Foster’s success attracting top students and employers. According to Bloomberg Businessweek, Foster ranks #17 in networking and #20 for its learning experience. Faculty research productivity ranks #7 in the world in The Financial Times. Those measures and more can be used to compare schools in the MBA Rankings Calculator.