The MBA Family: A Roundup and Overview

Not Sure which MBA program is right for you?  Download a free guide!At its core, the MBA is a graduate program in business administration for professionals who seek knowledge, skills, a credential, and/or a network to advance in business and to maximize their business performance.  While “MBA” makes many people automatically think of a two-year, full-time program, in recent years the variations on the MBA theme have multiplied, in order to meet changing and diversifying needs and interests of students and organizations.  Here’s a roundup of the main MBA options that are currently available, and their benefits and drawbacks.

Full-Time MBA Programs: This is a two-year, full-time program with an internship in the summer.  It targets business (and sometimes other) professionals with roughly 3-8 years of experience.  Obtaining a new position post-MBA is often a major focus of students, and recruiting by potential employers is a significant benefit of attending a full-time MBA.

Pros: close and sustained interaction with other full-time students, ideal for career changers, internship opportunity, strong recruiting.

Cons: significant opportunity cost, time away from industries that are undergoing rapid change.

Part-Time MBA Programs: Ideal for people who don’t want to leave their company or industry for any significant period or who can’t afford to stop working. Such programs target people who are employed full time, under the premise that students’ ongoing work will inform classroom discussion and projects. Part-time MBA students trend a little older than full-time MBA students.  While these programs have traditionally served local students, increasingly they are offering varied structures and online components to attract distance students.  They do not generally offer access to recruiters.  Often admission is less competitive than for the same school’s full-time program, enabling part-time students to obtain a “brand” they may not qualify for otherwise.

Pros: can continue to work/earn, apply learning in real time, access to top-tier programs.

Cons: take longer, no internship, usually no recruiting, it can be grueling to work and study simultaneously.

One-Year MBA Programs:  Of course, most European full-time MBA programs are one-year.  Some top US MBA programs, e.g., Cornell’s Johnson and Northwestern’s Kellogg, have offered one-year options for a while, and others are joining the fray as demand for such programs grows.  Often these one-year programs have special requirements, such as some prior business education or an advanced degree.  They are ideal for people who don’t need an internship and who have a strong base of experience; not usually the best path for career changers.

Pros: the intensity of a full-time program with less opportunity cost, usually regular recruiting, ability to quickly rejoin a fast-moving industry.

Cons: no conventional internship, less time to network with students and faculty.

Executive MBA Programs:  EMBAs are part-time programs targeting seasoned managers and entrepreneurs, typically people from mid-thirties to late forties (depending on the program) whose rise to senior manager level is imminent or who are already in senior management.  There is range within this category in terms of desired/required length of experience.  While coursework covers the same topics as regular MBA programs, it’s developed and presented with the higher level perspective.  A great benefit of EMBAs is the chance to network and form relationships with peers from a variety of industries and functions at a career phase when a fresh perspective is quite valuable but sometimes hard to obtain.  These programs don’t target career changers, but are increasingly used by and open to them, even though most EMBA programs don’t offer formal recruiting.

Pros: can apply learning immediately at work, breadth of exposure at a pivotal professional moment, valuable credential.

Cons: challenge of school plus demanding career and personal/family responsibilities, usually no formal recruiting for career changers.

Specialized MBA Programs: These programs offer the MBA course with focus on a specific industry or function; there are such options among both regular and executive MBA programs.  They vary in their formats and approaches.  Boston University’s Public & Nonprofit MBA is an example of a two-year specialized MBA; UC Irvine’s Health Care Executive MBA (HCEMBA) is an example of a specialized EMBA.  A relatively new one-year specialized MBA is Cornell Johnson’s Tech MBA.

Pros: intensive focus on area of interest with coursework adapted accordingly, network of colleagues with related experience and goals.

Cons: missing out on the diverse perspectives from other industries/sectors that can refresh and invigorate your thinking.

While you can’t apply to two different types of MBA programs at the same school in the same admissions cycle, you can do so in different cycles.  And you can apply to different types of programs at different schools at the same time.  For example, if someone is between regular and executive MBA in terms of age or length of experience, he could apply to some regular MBAs that trend older and some exec MBAs that trend younger.  Or someone may apply to full-time MBA programs but also apply to a part-time program nearby as an acceptable back-up.

Please do keep in mind, and address in your application, the nuances of the type of MBA as well as the particular program!

Download our free special report: Best MBA Programs
Cindy Tokumitsu By , author and co-author of numerous ebooks, articles, and special reports, including Why MBA and Best MBA Programs: A Guide to Selecting the Right One. Cindy has advised hundreds of successful applicants in her fifteen years with Accepted.com.

Related Resources:

MBA Action Plan: 6 Steps for the 6 Months Before You Apply
Tips for Applying to Part-time MBA Programs
• Ace the EMBA

3 Ways to Make Your Own Student Loan Luck

Not sure how to fund your MBA? Listen to this podcast for pointers.

Luck can’t pay off student loans, but YOU can!

“Diligence is the mother of good luck.”  – Benjamin Franklin

If you’re one of the 37 million Americans with student loans, you know it’s going to take a lot more than a few four-leaf clovers to make your debt disappear. You wouldn’t rely on winning the lottery in order to pay your loans, would you?  Unfortunately, neglecting to understand the various loan repayment options can be just as foolish, because you may be missing out on opportunities to reduce or even eliminate your debt burden. Essentially, leaving your loans to chance could mean leaving money on the table.

Rather than wait around for good fortune to find you, take a proactive approach by seeing if one of these three options apply to you:

1.  Spend money to save money
. All education loans, whether federal or private, allow for penalty-free prepayment, which means that you can pay more than the monthly minimum or make extra payments without incurring a fee. Prepaying may sound painful, but the benefits can be huge. The more you do it, the sooner you’re done with your loans – and the less interest you spend over the life of the loan.

Let’s say you have a $100,000 student loan balance at a 6.8% interest rate and 10-year term. If you increased your monthly payment by just $100, you’d save about $5,600 in total interest and pay off your loans about a year early. Or perhaps you pay down an extra $2,000 per year using your annual bonus, saving yourself about $7,400 in interest and paying off your loans about 1.5 years early. Every borrower’s situation is different, but you can do the math on your own loans with a calculator like this.

One thing to note – prepaying is most effective when the extra cash is applied directly to your principal, rather than being earmarked for future payments.  It’s best to check with your loan servicer to see what their policy is before increasing or adding extra payments.

How to get lucky: Commit to increasing your monthly student loan payment each time you get a raise and/or putting a percentage of every bonus toward your loan balance.

2.  Recalibrate your rate
. One of the fastest ways to slash your student loan burden is to lower the interest rate on your loans, which can only be accomplished through the act of refinancing. In addition to reducing the amount of interest you pay on your loan over time, refinancing can allow you to make lower monthly payments or shorten your payment term (so that you can be done with your loans sooner).

Student loan refinancing is still a relatively new option, so many borrowers who could be eligible to refinance aren’t even aware the opportunity exists. Which is unfortunate, because the savings can be significant.  For example, the average SoFi borrower saves $9,400 when they refinance with us.*  In addition, some private lenders offer additional benefits to borrowers when they refinance, such as complimentary career coaching and entrepreneurial support.

How to get lucky: When shopping around for a refinance lender, be sure to compare interest rates as well as other potential benefits.

3.  Ask for forgiveness. What borrower hasn’t fantasized about winning the lottery and paying off their loans in one fell swoop?  Unfortunately, you’re more likely to get hit by an asteroid than win a seven figure jackpot. So what’s the next best thing? How about making your student loan balance magically disappear.

It sounds too good to be true, but this is the basic idea behind student loan forgiveness. Surprisingly, there are quite a few ways to get your loan slate wiped clean, but the most well-known one (and the one that applies to the most people) is the government’s Public Service Loan Forgiveness (PSLF) Program. Under the program, borrowers who work full-time for a qualifying public service organization may be eligible to have federal loans forgiven after 10 years of on-time monthly payments.

Before you skim over this section and assume that PSLF won’t apply to you, consider this: The CFPB estimates that about one in four working Americans has a job that meets the definition of “public service”, and yet they believe a “substantial sum” is left on the table by borrowers who don’t take advantage. This may be because the definition is broader than what most people would expect – for example, soldiers, doctors at non-profit hospitals and public defenders are all examples of professions that may qualify a borrower for PSLF.

How to get lucky: Find out if you qualify for PSLF or other forgiveness programs by contacting your student loan servicer.  

*SoFi average borrower savings assumes 10-year student loan refinancing with a weighted average rate of 7.67% and a loan balance of $86,000, compared to SoFi’s median 10-year rates of 5.875% (with AutoPay).

This post is by Anna Wolf and originally appeared on the SoFi Blog. SoFi connects alumni borrowers and investors to refinance private and federal student loans.

Learn how to use sample essays to create an exemplary essay of your own!

Accepted.com: Helping You Write Your Best

Related Resources:

• SoFi: Alumni Funded Student Loans
Tips for Financing Your MBA
• PayScale: How Much You Can Earn, and How to Earn It

Tips for Applying to European B-Schools

Click here for more European school essays and tips

Do you know what you need to do to get admitted to a European MBA program?

Applying to a European MBA program isn’t quite the same as applying to an American program. The programs themselves often have a different focus than U.S. schools, and adcoms therefore look out for different skills and qualifications. I’d like to direct you to the following resources on our website – blog posts that focus specifically on how to answer specific questions on specific European b-school applications. Please check them out and be in touch if you have any questions!

Tip Posts for European B-Schools:

• ESADE 2015 MBA Essay Tips

HEC Paris 2015 MBA Essay Tips

HKUST 2015 MBA Essay Tips

IMD 2016 Essay Tips

INSEAD 2015 MBA Essay Tips

London Business School 2015 MBA Essay Tips

London Business School 2015 MiM Essay Questions and Tips

NUS MBA 2015 Essay Tips

Oxford Said 2015 MBA Essay Tips

For more advice, I recommend you check out these podcasts that feature interviews with adcom members from top European b-schools – it’s always good to get advice from the source itself!

• The Scoop on the London Business School Masters in Management Program

• Interview with Philippe Oster of HEC Paris

• An Inside Look at INSEAD

International_Students_Tips
Linda AbrahamBy Linda Abraham, president and founder of Accepted.com and co-author of the definitive book on MBA admissions, MBA Admission for Smarties: The No-Nonsense Guide to Acceptance at Top Business Schools.

A Window into Life at Harvard Business School

Click here for more mba student interviewsThis interview is the latest in an Accepted.com blog series featuring interviews with current MBA students, offering readers a behind-the-scenes look at top MBA programs. And now for a follow up interview with Tim Massey, who is about to complete his first year at Harvard Business School. (We first met Tim last year – you can read our first interview with him here.)

Accepted: Since we last spoke you applied to and got accepted to HBS. Congrats! How has your first year been so far? It b-school as you expected it to be? Any surprises? 

Tim: The first year has been an incredible ride. I’ve really enjoyed pretty much every aspect of it so far and I haven’t regretted my decision to study in the US for a second. The students here are an incredible bunch of people, and it’s really evident that the professors love teaching here. We’re fortunate enough to meet many of the protagonists of our cases or leading business leaders who come to visit our campus. The worldwide draw of HBS really enhances the experience. Without particularly seeking these opportunities out I’ve been able to listen to Peter Thiel (founder of Paypal and hugely successful investor), and Alan Mullaly (former CEO of Ford and Boeing).

HBS also is far more friendly and collaborative than I expected. It has a reputation for being a tough dog-eat-dog place, and that’s not really been my experience at all. Yes, it’s competitive but certainly not at any cost.

My biggest surprise is quite how busy I’ve been (despite HBS’ reputation) – it’s very different from my undergraduate studies and I’ve barely had a minute to myself from when I started right up until the Christmas break at the end of the first semester.

Accepted: Which MBA programs did you end up applying to? Was HBS your first choice? 

Tim: I described HBS originally as my joint first choice. As an engineer, I was also keen on MIT, but MIT made it an easy decision for me! I had a few other applications that I withdrew from early as I knew where I was going to be, and HBS is pretty much one of the first decisions you get in Round 1.

Accepted: If you could change anything about the program, what would it be?

Tim: My least favorite aspect of the whole MBA experience has undoubtedly been recruiting season. In contrast to many other parts of the experience, which tend to focus on self-growth and really achieving something meaningful, this seems very much stuck in the past.

I am sure this is borne out of necessity to compete with other schools and maintain league placing high up the recruitment league tables that applicants look at. But depth of support is really variable between traditional MBA industries (finance/consulting) and other more creative directions. It is very much at odds with the rest of the course and HBS’s mission to ‘educate leaders who make a difference in the world.’

I have a strong suspicion this is not unique to HBS and I think the competitive stats-based ranking system for admissions to the top business school really influences behavior here. Any school that deviates from promoting the top highly paid starting salaries and internships will suffer from a disadvantage in these metrics, and this promotes a ‘groupthink’ approach.

Accepted: Are you involved in any clubs on campus? How central to student life is club involvement?

Tim: There is a pretty huge array of clubs on campus to join, HBS definitely benefits from its size in this respect with members forming based on range of different interests. The majority are based around either professional/career interests (e.g. VCPE club (venture capital/private equity), Tech club), geographical locations (e.g. Euro club/LatAm club) or sports, with some special interests thrown in.

I’m been involved in helping to organize several of these, which is a bit of a throwback to my undergrad days when I was also heavily involved in the student body.

The main difference is a slightly more ‘professional’ edge than undergraduate clubs, with most designed to help navigate and network amongst the diverse student body, and attract specific career opportunities to campus.

Accepted: Can you tell us about  your experience with HBS’ FIELD program?

Tim: So far, I’ve travelled to Chengdu in China on FIELD 2, working with a social enterprise focused on promoting recycling electronics (I wrote about this in a little more detail on my blog here). It was a great project and really allowed me to get a unique perspective on awareness of environmental issues in China. As a whole experience, it really challenged some perspectives I had before I went.

At the moment I’m in the thick of FIELD 3, in the early stages of starting my own business with a group of other students. I’ll be sure to write more about it as we make progress!

Accepted: Have you been keeping up your blogging? Can you direct us to one or two posts that will further help us get up to date with your b-school adventure?

Tim: In addition to my post about FIELD above, I wrote down some of my perspectives on the first semester here.

I’m trying to keep up the blogging, but the strain on my time commitments makes it a bit more difficult to find time than it used to be! I try to write once a month or so – I’m in an incredibly fortunate position to write about what’s it like on the inside – I try to answer the questions I had as an applicant, and if anyone has any suggestions of things they’d like to know more detail about, I’m happy to take requests!

For one-on-one guidance on your b-school applications, please see our MBA Application Packages.  To read more about Tim’s b-school journey, please check out his blog, The Adventures of a MBA Student. Thank you Tim for sharing your story with us! 

Check out our free webinar: Get Accepted to Harvard Business School!

Accepted: The Premier Admissions Cosultancy
Related Resources:

• Best MBA Programs: A Guide to Selecting the Right One
• What Does Harvard Business School Want?, a video
• Life as an HBS MBA Student

The GMAC, the GMAT, and the MBA Degree

IV with Rich D'AmatoAdmit it. You just can’t stop thinking about the GMAT.

If you are a b-school student (present or future), then Rich D’Amato, Vice President of Global Communications at GMAC, has some important info to share with you.

Listen to the full recording of our conversation with Rich for the scoop on new GMAT features, the MBA Alumni survey, the relevance of the MBA degree, and more.

00:02:44 – The low-down on GMAC’s Enhanced Score Reports and how they can help you prepare effectively and score higher on the GMAT.

00:08:17 – The new Score Preview feature: how it works and how it can help you.

00:11:22 – Featured Applicant Question: Can I retake the GMAT, and then cancel the score and reinstate the original score?

00:12:08 – The case for the GMAT in the GMAT vs GRE battle.

00:15:24 – The role of “entrepreneurial traits” (and an MBA education) in career success.

00:19:16 – Is the end of the MBA degree in sight?

00:21:54 – The growth of specialized business degrees.

00:26:36 – Rich’s awesome advice for future test-takers.

Click here to listen to the show!*Theme music is courtesy of podcastthemes.com.

Related Links:

• The Official GMAT Website 
GMAT NEWSFLASH: GMAT to Feature Score Preview
• GMAT’s New Enhanced Score Report
GMAT Unofficial Enhanced Score Report FAQs
Control Your GMAT Experience with These Three Features

Related Shows:

• The GMAT, the GRE, and the Guy Who Knows them Well
• The GMAT Score Preview and Application Boxes
• GMAT, GRE, SAT, and All Things Test Prep
• Chris Ryan of Manhattan GMAT on What MBA Applicants Need to Know

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