Is That MBA Degree Worth the Money?

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Sept. 30 (Bloomberg) –- Anna Ivey Consulting Founder Anna Ivey discusses a shift in focus in what applicants want out of business school. She speaks with Erik Schatzker and Stephanie Ruhle on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Potential mba students are questioning whether the degree is really worth the money great news there was a 12% drop in application to the wharton school of business raised quite a few eyebrows.

Our business schools staying up with a shift in interest to tag and entrepreneurship.

Joining us is a the -- is the former dean of admissions at the chicago law school.

Welcome.

When i think about the way wall street hires, it's all about hiring mba students.

You have to get the internship and ultimately get the full-time job.

Are we seeing less applicants because no one wants to go to wall street?

Those top schools are not going to go out of business anytime soon.

What we are seeing is a shift in focus with what these applicants want to get out of business school.

Hiring in the financial services sector is definitely down and that's no surprise.

But you see more interest in entrepreneurship.

That's what a lot of people want to do now.

A lot of schools have to shift their own focus in terms of their offering.

Are they more interested in going to yale, which is focused on entrepreneurship rather than wharton or harvard?

I don't think that's accurate . harvard has a lot more going on than investment banking and that is true for wharton also.

When investment banking was all the rage, it's hard to believe that would be held against the schools that they did so well placing the student on wall street.

But is it true students went to get something different out of business school or that business schools are doing a good enough job of giving them options?

Some schools have always been famous for entrepreneurship.

Stanford is the obvious case.

Harvard business school was a little late to the party but they are catching up.

Even wharton, which everyone is picking on this week does really well and entrepreneurship.

What if you go past the top 10 or top 15? there are some famous schools that will continue to degrade because the name alone is enough.

-- because the name alone is enough.

Business schools, the traditional full-time model is very expensive to run and expensive to attend.

Are people going to pay that kind of money to go to a less than elite business school?

I think a less than elite schools are the one that will feel the squeeze as or gets delivered digitally and at lower cost.

Those are the schools that will have to adapt or die.

What do they have to do?

Like they will have to take a hard look at their business model.

The return on investment is in flux right now.

Mba salary people still get a bump compared to pre-mba salaries greater not as much as the go-go days of the 90s. the tuition keeps going up, up, up.

It's an average of seven percent a year and that is eye-popping.

Applicants are mindful of the return on investment, rightfully so.

They should be paying attention.

Do the employer's care so much to see this three letters after someone's name or are they more interested in prospecting for engineers and computer science grads?

Social sciences grads -- i'm one of them.

Me to.

I'm not so worried about people coming out of science, tech and engineering.

That world is looking good for them.

If you are going to invest in a graduate degrees and you are looking at business school, it matters where you come out of.

That's the world we live in.

There is a reason that stanford and wharton don't have to worry about a big drop.

But the other schools do because it really comes down to not getting their money's worth.

That is a really legitimate concern.

The last thing that should be happening is that people go for business school and it's a financially ruinous decision.

Many people go to great business schools to get job opportunities.

People go to business schools for a number of reasons.

You go to join a powerful network, because the right employers are there, so a network is important and a roster of employers is important, you have to pay attention to that.

Thank you so much for joining

This text has been automatically generated. It may not be 100% accurate.

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