The average total cost of an MBA from a top-25 B-school lands at $199,544—an increase of roughly $4,000 from 2020.

That cost isn’t going down anytime soon. Tuition, while certainty the largest expense, is only a portion of the total cost, however. Fortune’s Mary Lowengard, recently discussed a few surprising expenses that play into the high out-of-pocket cost of an MBA education.

SHARED EXPERIENCES

One of the main reasons why people pursue an MBA education is to make important connections.

“At the end of the day, it’s about shared experiences, and these trips create strong enduring relationships,” Lex Zhao, an MBA grad of the University of Chicago Booth School of Business, tells Fortune.

Those shared experiences, however, can add up in cost. According to WeTravel, a platform for trip organizers founded in 2015 by three Berkeley Haas grads, 2019 MBAs spent nearly $21,300 for 13 trips over the course of two years. However, these trips, in many ways, are the core value of the MBA experience.

“I would say the travel was one of the primary value propositions offered by our program,” Zhou tells Fortune. “Anyone can pick up a textbook or explore business theory online. These trips offer a ton of value you can’t get anywhere else.”

CLUB DUES

Another aspect of the MBA experience is clubs and organizations.

“Not at all in the same five-figure league as travel expenses, but still significantly expensive, several recent MBAs mentioned an unanticipated cost was club dues,” Lowengard writes. “These grads describe club dues of $100 and up, which could total $1,000 or more depending on the number of groups a student joins. Joining clubs is typically viewed as a necessary expense as it helps students learn how to make themselves more attractive to recruiters and offers valuable networking opportunities.”

PARKING FEES

Having a car isn’t necessary at many B-schools, but for those who do choose to drive, the costs can add up quickly. Many campuses offer limited on-campus parking with hefty fees. At UCLA, where on-campus parking spaces are sparce, students used to be able to enter a lottery to secure parking.

“But then, if you won a spot through the lottery, the school rubbed salt in the wound with a ridiculous—it seemed to me at the time—quarterly parking fee,” David Whelan, a 2002 grad of UCLA Anderson, tells Fortune.

Sources: Fortune, Poets&Quants

Next Page: Why you should look into a European MBA.

LBS’ London campus is on the doorstep of Regents Park

Here’s Why You Should Look Into A European MBA

Experts say now is the ideal time to pursue an MBA in Europe. But what exactly is the draw behind a European MBA?

Stacy Blackman, founder of Stacy Blackman Consulting (SBC), recently discussed a few of the top benefits behind pursuing an MBA education in Europe.

HIGH ROI

For many, the biggest benefit of a European MBA is the return on investment. In Europe, MBA programs generally yield shorter time to completion and lower tuition when compared to American MBA programs.

“In a study that SBC conducted across its EU applicant pool, shorter duration and lower tuition costs were reasons endorsed by 48% of respondents,” Blackman writes.

TWO-YEAR, POST-STUDY WORK VISA

America’s stringent H1B Visa restrictions can often be a big deterrent for international applicants. The UK, however, offers a two-year, post-study work visa for international students who graduated in summer 2021 or later—something experts say make it easier for new MBAs to find jobs.

“This is incredibly valuable at a time when the US’s political climate, and recent H1B Visa restrictions, have deterred some internationals from venturing to the US,” Blackman writes. “An MBA in Europe suddenly seems much more attractive.”

SPECIALIZED INDUSTRY

While the US has a stronghold in the technology industry, experts say Europe is the place to be if you’re intent on landing a job in fintech.

“London is considered the fintech capital of the world because of the banking passport legislation that governs Europe and standardizes products across 27 countries,” Blackman writes. “Europe has an advantage over the US in the fintech industry because the US must contend with legislation that varies by state and can be an impediment to digital banking.”

Sources: Stacy Blackman Consulting, Fortuna Admissions

Next Page: What Harvard Business School admissions officer say about the MBA application.

Harvard Business School

What HBS Admissions Officers Say About The MBA Application

Harvard Business School (HBS) welcomed its largest MBA cohort in school history this past year. As the Round 2 deadline approaches, the HBS admissions team recently offered insight into the B-school’s MBA application process.

GMAT VS. GRE

Applicants can rest assured that both the GMAT and GRE will be viewed equally in HBS admissions as the business school does not have a preference of one over the other.

“If you submit multiple test scores from GMAT or GRE to HBS, we will only look at the score from your highest single test sitting,” according to HBS admissions. “Nearly 30% of our current first-year students at HBS submitted GRE scores.”

TWO YEARS OF FULL-TIME WORK EXPERIENCE REQUIRED

If you’re applying to HBS, you’ll want to have at least two years of full-time work experience under your belt.

“As the case method of learning used by our MBA program relies on exchanging perspectives, you must have two years of full-time work experience in a professional position in the public, private, or nonprofit sector by the time you enroll at HBS,” according to HBS admissions. “Co-ops or internships done while in school or during the summers between terms are not insignificant, but typically do not count toward professional work experience for our purposes.”

BE SELF-REFLECTIVE

HBS admissions officers say they seek out applicants who can offer a strong sense of self-reflection in their admissions essay.

“The essay is your opportunity to share new information that isn’t elsewhere in the application,” according to HBS admissions. “Think about how you can use the essay to help the admissions committee get to know you better. Consider meaningful or formative experiences that are important to you that you haven’t gotten a chance to mention anywhere else in your application.”

Stacy Blackman, founder of Stacy Blackman Consulting, recommends being vulnerable in telling admissions officers about your hardships and how you overcame them.

“Embrace the challenges that you have overcome and tell your story,” Blackman writes. “Remember that focusing on the lessons in your setbacks can be inspiring and revealing.”

Sources: Harvard Business School, Stacy Blackman Consulting, Poets&Quants

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