The current year has been prosperous for many business schools. Donations from notable alumni seem to be pouring in. Take Boston University’s recently renamed business school, for example. Yet a recent Financial Times (FT) article suggests that such gifts are often merely short-term solutions for deeply ingrained issues in school budgets. The FT notes that such expenses as international trips and classes—which are increasingly popular among students—add to the already high costs of many programs. Another expense worth noting is salaries for top professors, which, the FT reports, can total more than $400K per professor each year.
Perhaps unsurprisingly, MBA tuition costs have risen recently. At private business schools in the United States, tuition increased by 25% from 2009 to 2014, while tuition at public schools rose by 50% during the same period. However, some programs are hopeful that future aspiring MBAs will not need to dig deeper into their pockets to attend business school. Alison Davis-Blake, dean of the University of Michigan’s Ross School of Business, told the FT, “I don’t think we’re going to see an increase in tuition fees” and disagreed with the implication that schools are raising fees to cover gaps in their budgets.