Not all degrees are a waste of time: MBA graduates from Harvard, MIT, and Wharton are making over $245,000 just three years after graduating

As the job market has tightened, many Gen Z college graduates have struggled to find stable footing—raising new questions about whether a degree is still worth the time and debt burden.

But for many MBA students, the return on investment still looks hard to beat.

Recent data from Harvard Business School found MBA alumni are raking in median salaries of about $260,000 three years after graduating. At the University of Pennsylvania’s Wharton School, alumni are earning $248,000, while MIT (Sloan) graduates are bringing in $246,000, according to the Financial Times.

This eye-watering pay—and strong return on investment—at elite MBA programs is “no surprise,” Jamie Beaton, founder and CEO of Crimson Education, a college admissions consulting firm, told Fortune. 

The degree often serves as a gateway to some of the highest-paying fields in business, including management consulting, investment banking, and private equity. Top firms, from McKinsey and Bain to JPMorgan Chase and Goldman Sachs, regularly recruit from a small group of elite schools, creating a reliable pipeline into fruitful careers, Beaton said.

“The enduring benefit of business school from a top school is as long as you select the right industries, the economic return is lucrative,” he said.

HBS, Wharton, and MIT regularly top lists of the best business schools in the country.

High stakes are rewarded with high salaries

Despite the high post-grad salaries, an MBA’s value remains hotly debated.

Late last year, billionaire Joe Liemandt was asked on the BigDeal podcast if young people should pursue an MBA. His answer was simple: “No.”

“That’s an easy one for me,” said the Trilogy Software and ESW Capital founder. “There’s nothing on the business knowledge that you’re going to come out of there that is a fraction of what you would get from building your own thing for that two years.”

Other top leaders, including Tesla CEO Elon Musk and PayPal cofounder Peter Thiel, have similarly expressed their disdain for hiring someone just because they have an MBA. 

Still, student interest hadn’t faded. Applications to MBA programs grew by 13% in 2024 and another 2% in 2025, according to the Graduate Management Admission Council (GMAC).

While long-term earnings are strong, short-term job outcomes also remain solid—even as concerns about the entry-level job market persist. Among HBS’s class of 2025, 90% received at least one job offer within three months of graduation—and 84% accepted, both figures an improvement from the previous two years. 

Outcomes across the other so-called “Magnificent 7” business schools—Chicago (Booth), Columbia Business School, MIT (Sloan), Northwestern (Kellogg), Stanford (GSB), UPenn (Wharton)—show similar strength. Recent graduates reported median base salaries ranging from about $175,000 to $185,000 within three months of receiving their diploma.

According to Barbara Coward, founder of MBA 360 Admissions Consulting, one of the biggest advantages elite MBA students gain is access to powerful professional networks. 

Admission to a top program, she said, is effectively entry into an “elite club of industry-wide influencers and changemakers”—along with the expectation graduates will perform at a high level.

“Employers are competing for top talent to fill these positions because the stakes are high—missed opportunities or unforced errors in investment banking or top-tier consulting firms can cost millions of dollars,” Coward added.  “With great responsibility comes great compensation, but also an expectation for impeccable performance and well-vetted talent.”

How to get admitted to a top MBA program like Harvard and Stanford

If the six-figure salaries sound appealing, getting into a top MBA program is far from easy. Acceptance rates at many leading programs typically fall between 20% and 30%, making admission highly competitive.

According to Beaton, successful applicants typically demonstrate four key qualities:

• “Strong and consistent academic performance in undergraduate studies, ideally at a highly ranked college;
• Aggressive career aspirations (future founders or future CEOs);
• Proven evidence of institutional and entrepreneurial leadership; and 
• A differentiated sector focus or mission beyond simply making money.”

Coward encourages applicants to think about admissions in terms of mutual return on investment—not just what the school can offer them, but what they can bring to the program.

“There are limited seats in each cohort. If the admissions office says ‘yes’ to you that means they have to say ‘no’ to another applicant who could be just as qualified,” she said. “What is your ROI to the incoming cohort and the brand’s reputation?”

While an MBA remains one of the most reliable ways to accelerate a career, it is far from the only path to the job. Just over 40% of Fortune 500 CEOs hold an MBA—meaning a majority reached the corner office without one.

This story was originally featured on Fortune.com