CONTACT: GEORGE MCCRORY
300 Plaza Centre One
Iowa City IA 52242
(319) 384-0012; fax (319) 384-0024
Release: Oct. 12, 2001
Forbes ranks UI MBA program fifth in 'return on investment'
magazine has ranked the Tippie MBA program at the University of Iowa fifth
in "return on investment." The ranking shows that Tippie MBA graduates receive
one of the top returns on their educational investment among schools with
total costs of less than $95,000.
To create the ranking, Forbes surveyed 20,000 graduates who received
MBAs from 104 U.S. and international schools in 1996. Forbes also ranked MBA
schools with a cost of more than $95,000.
The Forbes rankings project how quickly MBA students can expect to recoup
the investment made in their MBA education after they graduate and are based
on salary gains of 1996 MBA graduates over the past five years. The survey
methodology contrasts the costs of earning an MBA, such as tuition and two
years of lost salary, with the salary benefits earned five years after graduation.
The survey showed that Tippie graduates had total salary gains of $71,000
over the five-year period and needed only three years to break even on their
"We are pleased the Forbes ranking shows what we have been stressing
for some time -- that the Tippie MBA is a great value. Our talented faculty
provide a quality management education," said Gary Fethke, dean of the Tippie
College of Business.
The MBA alumni gave salary information from the year before they entered
business school, the year they graduated and 2000. Forbes compared the total
of five years' pay with a projection of what the median student would have
earned for those five years without a degree. Tuitions were adjusted to factor
in those students paying in-state tuition at public schools.
"Our MBA program is producing graduates going to higher level jobs, which
in turn means higher salaries and higher return on investment. This is a result
of recruiting talented students, making curriculum changes, and the placement
efforts of our Career Services group," said Gary Gaeth, associate dean of
MBA programs in the Tippie School of Management.
Don Schmidt, president of the student MBA Association, said that the
Forbes ranking project confirmed what students have known all along. "Top
quality education and business experience with
a great return on investment is a key reason for students' choosing the Tippie
MBA program over others in the nation. While some MBA programs have increased
their class sizes quickly at the expense of student quality, the Tippie MBA
program has focused their efforts on growing the program slowly as to not
sacrifice the quality of students that enter the MBA program. The Forbes ranking
illustrates that this strategy is working very effectively," said Schmidt.
The ranking is included in the magazine's Oct. 15 issue and is available
online at http://www.forbes.com.