Don’t fret, MSBers.
Today’s WSJ article — which quotes MSB prof Brooks Holtom (below) — portrays a dismal ROI picture for the typical MBA … but points out that the economic crunch is not as severe for prestigious school grads (think, MSB).
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Debt-to-compensation ratio
First the numbers.
The WSJ tracked the average comp levels of young MBAs and matched it against their school debt loads.
The conclusion: an average young MBA has carries a school debt roughly equal to 1-years gross compensation … call it about 2 years of after-tax comp.
Note that the gross comp to student debt ratio was about 4-to-1 in 2001 … during the dotcom land rush.
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So, what’s going on?
