Skyrocketing MBA tuition

When I went to Atlanta in September for the “black MBA” job fair, I attended the Kenan-Flagler alumni reception where the Dean gave an update on the progresses the school’s been making over the past years. These include the renovations on the first and second floors of McColl, the fifth floor that’s being build to allow for more study space in the rest of the building, and a new merit based fellowship for outstanding applicants. He jokingly told the alums present that what they were hearing was the equivalent to having bought a television set and then finding out later about the improvements made in the subsequent models.

 

While I am sure many Kenan-Flagler alums are envious of the improvements that have been added to the MBA program over the years, one thing I am sure they don’t care much for is the skyrocketing tuition. The tuition for the current school year is more than 6% higher than that of the past school year and, according to the Kenan-Flagler web site, the estimated tuition for next school year will be almost 7% higher than that of the current year.

 

2005-2006       $32,749

2006-2007       $34,749

2007-2008       $37,149

 

There are several justifications for raising tuition rates. The most obvious one is to keep up with the rising cost of running the program. But I suspect there are also less obvious justifications involved. There was an article in the New York Times last month about how several colleges have made themselves more popular with applicants by raising their tuition rates. The logic being that since many students perceive the quality of an education by the price, raising a school’s tuition will have the effect of enhancing its perceived value.

 

I personally think the main reason for the increased tuition is to be consistent with UNC’s policy of maximization its profit from its students.