'ROI On An MBA Is Seriously Messed Up'

Why has a Reddit user's post -- where the user warns that 'even an IIM tag won't save you' -- created a storm online?

A searing Reddit post titled Has The MBA Bubble Busted? has sparked intense debate and introspection across India, exposing the paradox of an MBA degree in today's economy.

An MBA, that was once synonymous with a career guarantee, now teeters between opportunity and financial ruin.

The post, written by a recent Indian Institute of Management graduate, has sparked a nationwide conversation about the value of business education in a world where skills increasingly trump pedigree and a six-figure debt collides with uncertain returns.

The financial tightrope

For over 330,000 annual applicants competing for just 5,000 seats at the IIMs, admission feels like winning a lottery. But the euphoria fades fast.

MBA fees at premier schools now range from Rs 21 lakh to Rs 34 lakh, excluding living costs and the unspoken expenses of networking events and internships.

Many students shoulder crushing loans, betting on post-MBA salaries to offset their debt.

Yet, as the Reddit post warns, 'The ROI on an MBA these days is seriously messed up. Fees are skyrocketing, placements are unpredictable and many students are drowning in bank loans. Unless you land a top-tier job, it can take years to break even.'

Agneeastra, who wrote the post on Reddit, adds, 'An IIM MBA is an expensive two-year ride. The parties, the networking, the trips, the endless spending... it all adds up. You're in an environment where keeping up with the crowd burns a hole in your pocket. It's fun, sure, but financially draining.'

The stakes are starkly quantified: There are increasing reports of rising loan defaults among MBA graduates, particularly from mid-tier colleges.

Meanwhile, elite institutions still deliver -- 78 per cent of top-tier MBAs are deemed employable versus a dismal seven per cent for the rest, as per this Statista report (external link).

Commenting on the post, a user who paid off their loan in three years while working in a consulting role, says, 'The brand opens doors but you have to sprint through them.'

The employability chasm

Recruiters now dissect resumes with surgical precision.

'An MBA surely makes you look attractive on paper but it's your core skills like problem-solving, analytics, sales, leadership that actually land you the job,' noted Agneeastra, underscoring the paradigm shift. 'And the job market is shifting; recruiters now prioritise skills over degrees.

'The market is moving from degree-based hiring to skill-based hiring and if you don't build those skills, even an IIM tag won't save you.'

Statista's 2025 employability report reveals that while top schools excel in placements, companies increasingly prioritise technical prowess -- data analytics, AI literacy, strategic problem-solving -- over generic management training. LinkedIn's 2023 Skills Outlook (external link) has also highlighted the surging demand for cybersecurity and AI skills, areas where traditional MBA programmes lag.

'Let's be real,' said another user commenting on the post. 'The IIM curriculum itself needs a serious revamp. The world is evolving, industries are changing but the way we are taught still feels outdated. More practical exposure, industry-driven learning and modern skill development should be the focus, not just theoretical frameworks from the '90s.'

The strategic gambit

Critics demand curricular overhauls to integrate real-world tools like Python and digital strategy.

Yet, it cannot be denied that top schools still offer intangible advantages: alumni networks, leadership frameworks and a 'corporate mindset'.

As one Reddit user noted, 'It's an ecosystem, not just a degree.'

Proponents argue the MBA's true value lies in its human capital. 'The network is everything. Networking is something that will define your professional life in ways you won't expect,' a graduate who pivoted to venture capital via alumni connections shared on Reddit.

Peer learning, internships and access to industry leaders remain unique perks. Yet, these opportunities demand relentless hustle and money.

'Keeping up with peers meant foreign trips, designer suits and endless coffees with seniors. My loan ballooned by Rs 5 lakh,' confessed a Reddit user.

The original poster pointed out, 'That's where the real game of MBA comes in. The curriculum is designed in a way that forces you to speak up, take initiative and make your presence felt.

'It's not just about classes; it's about learning from your peers, grabbing every opportunity and pushing yourself in competitions, projects and networking. You have to hustle because nothing is handed to you.'

A calculated risk

Industry analysts urge caution.

'The MBA is neither dead nor a guarantee -- it's a leveraged bet,' said another Reddit user. Success now hinges on strategy: choosing schools with industry-aligned curricula, securing early internships and complementing coursework with certifications in high-demand fields.

For some, like a graduate who transitioned from engineering to a Rs 45 lakh fintech role, the MBA is a bridge to reinvention. For others, it's a costly detour.

'Map your post-MBA path before enrolling. If you want 'time to find yourself', this isn't the degree for you,' Agneeastra concluded.

'At the end of the day, an MBA is worth it only if you have a clear reason for doing it and know how to leverage it. Otherwise, it's just an overpriced ride that leaves you with a fancy degree, a mountain of debt and no real skills to show for it.'

As automation reshapes industries, the MBA's currency is irrevocably tied to adaptability. It remains a passport to boardrooms for the savvy but for the unprepared, it's a debt trap in a world racing toward skill-based futures.

The bubble hasn't burst -- it's bifurcated.