'Not everyone who applies gets a seat at Harvard or Yale.'
'The less fortunate have to settle for lesser known colleges and eventually fall into a debt trap.'
Divya Nair/Rediff.com speaks to students and experts to find out whether it is better to study management in India or try for an international MBA.
For many students and parents across the world, an Ivy League MBA -- particularly one from the Harvard Business School -- is more than just a degree.
It is like a stamp of excellence, a symbol of prestige and a gateway that will allow access to elite professional circles.
What's an Ivy League School?
The Ivy League comprises eight institutions of higher learning -- Harvard University, Princeton University, Yale University, Brown University, Columbia University, Cornell University, Dartmouth College and the University of Pennsylvania.
The average acceptance rate at an Ivy League college ranges between three to nine per cent, which means over 90 per cent of the applicants are rejected every year, making these colleges the most competitive educational institutions in the world.
Ivy League institutions are valued for their strong alumni network, student-faculty ratio and high quality peer learning -- features that help position them as world class universities. Harvard, Yale and Stanford are consistently ranked among the top schools in the world as per the Times Higher Education Rankings.
Any graduate who passed out of these colleges is highly sought after.
However, as per a recent Forbes report (external link), an MBA degree from Harvard is no longer as prestigious as it used to be.
Why are Harvard MBAs struggling to find jobs?
In 2022, according to The Wall Street Journal, three months after they completed their degree, 10 per cent of Harvard's spring MBA graduates were yet to find jobs.
Last year, this figure had risen to 23 per cent.
As per the same WSJ report, the Stanford Graduate School of Education and the Wharton School had also reported a decline in placements, hinting at increasing unemployment.
Harvard's Web site reports that 70 per cent of its graduates were able to seek employment after completing their course. Of the 30 per cent who did not seek employment, 14 per cent were starting their own business and 13 per cent had been sponsored by their company or were already employed when they completed their course.
The median salary, as mentioned on the Harvard web site for the MBA class of 2024, is $175,000, with jobs in finance and private equity dominating the placements.
Sounds attractive?
Students who travel from abroad, especially from India, to pursue an MBA paint a more nuanced picture.
Take, for example, Mumbai-born Piyush Shah* who had a GMAT score of 730 -- which meant he was among the top 10 per cent among those who succeeded in the test -- took a huge loan of approximately Rs 1 crore (Rs 10 million) when he opted to study at the University of Virginia two years ago (The Graduate Management Admission Test is an eligibility test for admissions in a graduate management programme in India and abroad.)
"I wanted to shift gears from engineering to a management and operations role. I also wanted a better career and life abroad. Virginia seemed like a good bet," Piyush says. "I did not want to come back to India for at least the next 10 years."
He received offers from top firms like Deloitte and IBM ahead of his final semester. But he waited for four months after his graduation and finally settled for a role where he could also negotiate perks like "work visa and accommodation".
Piyush feels that, after the pandemic, education costs have gone up which has also increased salary and return on investment (ROI) expectations from students and their parents.
"It would be rude and incorrect to say that my placement offers weren't good. But I expected a better ROI. I was being picky so I waited and negotiated for the best offer."
While Piyush is reluctant to reveal his salary, he says it is "at least 50 per cent better than what I would have earned in India. Plus I live rent-free here".
Change in hiring demand and nature of roles
Hiring experts and experienced professionals believe that the shift in placements is happening across industries.
"The job market is constantly evolving. Companies are strategising every year, maybe every quarter if the need arises, to meet their workforce requirements," says Jaspreet Arora, a 42-year-old management consultant who pursued a flexible executive MBA programme during the pandemic to boost his career.
"The return on investment is obviously higher for foreign MBAs but so are the stakes," warns Rishabh Sharma, a study abroad consultant and hiring expert based out of Delhi.
"Parents are taking huge loans and mortgaging their gold and property to send their children abroad to study. They want to migrate abroad for a better life. The MBA degree is just a fancy addition to their CV.
"There is no harm in being ambitious, but let's get real here. Not everyone who applies gets a seat at Harvard or Yale. The less fortunate who do not do their research have to settle for lesser known colleges and eventually fall into a debt trap.
"If they don't get a good job within a year of completing their education, they have to either return to their home country before their visa expires or take up a less attractive role to survive in the country.
"Out of 10 such students, at least two or three face this crisis every year," Rishabh explains.
He highlights how "unreal expectations and societal pressure" has contributed to this trend.
"If your friend or senior with X years of experience is earning Rs 1 crore per annum, you want to do the same. But do you have the same skills and experience? Or can you offer something extra?"
Rishabh feels that graduates and professionals with multi-dimensional skills will find it easier to get jobs than those with traditional MBA and engineering degrees.
Experts also highlight how, post-pandemic, there was a general decline in campus hiring due to massive layoffs across the world, a trend that continues even today.
Between 2021 and 2024, tech giants like Amazon, Google and Microsoft (external link) have been restructuring in an effort to cut costs and, in the process, reducing thousands of jobs, laying off both young and senior employees.
Jaspreet, who closely works with management trainees and interns, advises young professionals to look out for free and paid skilling courses on Coursera and the National Skill Development and Corporation to stay relevant.
"Those who are opting for higher education courses like an MBA or master of science should consider the market requirements and prepare accordingly," he says.
"Companies don't want vanilla engineers and MBAs (graduates with generic degrees, no specialised or niche skills) any more.
"They are looking for the next breakthrough in AI (artificial intelligence) and automation.
"They want people who can help them build leaner, more adaptable teams across verticals."
Harvard versus Indian business schools
The cost of a full-time MBA in a top business school in India ranges between Rs 20 lakhs and Rs 30 lakhs (Rs 2 million to Rs 3 million).
In comparison, the cost of an MBA at Harvard works to $152,820 (approximately Rs 1.3 crore) for a full-time, two-year programme.
Piyush's engineering batchmate Shardul Hegde* took the GRE (Graduate Record Examinations, the eligibility test for acceptance into graduate and business schools internationally) twice, hoping to get admission into Harvard or Yale. Eventually, he opted to study at the Indian School of Business in Hyderabad.
"When I compared the overall cost of education, including the visa and living expenses, I felt that studying in India was much more affordable," says Shardul, who is currently employed at a consulting firm in Pune. "I was immediately accepted into IBS and, within a year and a half of completing my MBA, I was able to choose the company I wanted to work with."
While Hegde took a loan of Rs 30 lakhs for his MBA and was able to secure a package of approximately Rs 40 lakhs (Rs 4 million) per annum -- "nearly three times" the amount he was earning as an engineering graduate -- he feels he could have negotiated better.
The decline in MBA placements may seem concerning to some but experts feel it is temporary.
"Think of it (college placements) like a business," explains rediffguru Patrick Dsouza, who trains management aspirants for MBA entrance examinations.
"There are always ups and downs in a business cycle. When the markets are up or when there's a boom, the placements at the IIMs also pick up.
"In India, the top Indian Institutes of Management -- Ahmedabad, Bangalore and Calcutta -- have not suffered so much but the next level of colleges have experienced a dip in placements. This happens during every recession and then it climbs up."
*These names have been changed on request to protect the privacy of the interviewees.
- MBA-related questions? Ask rediffGURUS HERE.
© 2025