An article in today’s Wall Street Journal (“Escape Route: Seeking Refuge in an M.B.A. Program”) looked more deeply into the trend of people turning to graduate school as the economy slows. Veritas Prep was mentioned as one of the GMAT prep and admissions consulting firms that has recently seen tremendous growth because of the softening economy and Wall Street turmoil.
While this trend has been covered a great deal lately, this piece raises an interesting question: If more people pursue their MBAs now but the Wall Street landscape looks dramatically different in three years, where will those grads go? According to the article:
But the severity of the financial crisis and the demise and consolidation of financial powerhouses that in previous years have nabbed top talent at schools across the country make this year’s flight to business school different. When this year’s M.B.A. applicants graduate, they will enter a dramatically different Wall Street and potentially smaller job market that has been altered by the ripple effects of the credit crunch.
“The demand for managing money and the demand for banking skills, that’s going to be here,” says Stacey Kole, deputy dean for the full-time M.B.A. program at the University of Chicago Graduate School of Business. But “it may migrate to different firms.” Ms. Kole says the school is seeing more boutique firms recruit on campus, as well as employers in other sectors recruiting for finance jobs. “People who may have gone to Wall Street will go to Main Street in a finance role,” she says.
Business schools aren’t the only ones that may see an increase in application because of the economy. According to the Law School Admission Council, this past June there were 28,939 LSATs administered in June, representing a 15.3% increase from a year ago.
Perhaps most concerning is the effect that the current market may have on student loans. Some lenders (such as Citi) have already suspended loan programs, while others are tightening their lending standards. It remains to be seen how much of an impact this trend will have on the overall graduate school admissions landscape.
If you’re just now thinking about applying to business school or law school this year, take a look at Veritas Prep’s industry-leading admissions consulting team.