The one-year full-time programs reduced the timeframe considerably, without sacrificing the rigour or commitment. But then, the rise of the Master’s programs, offering various specialisations at far less financial commitment as also the more flexible, low expense online MBAs started attracting droves of applicants away from the regular campus-based MBA programs.

• Full-time campus-based MBA programs in the US are losing out to more flexible and far less expensive online options
• The University of Illinois’ Gies College of Business has announced scrapping of its full-time, on-campus program. It will focus more on its online MBA option, the $22,000 iMBA, which has seen huge growth since its launch in 2015
• Applications to the program are expected to touch 3,200 this year, up from 1,099 in 2016
• Strengthening of the US economy, the rising cost of the programs and the unwillingness of the aspirants to take on huge amounts of debt burden are among the reasons for the decline in applications to full-time MBA
• President Donald Trump’s stricter policies on immigration have resulted in a substantial fall in the number of international candidates. Availability of shorter, cheaper alternatives in the form of the one-year and online options to speciality master’s degrees in specialisations such as data analytics and entrepreneurship is yet another reason.

The net result is the drop in the number of applications to MBA programs at several schools. The lower number of applicants resulted in rising expenses in running the program for the schools forcing many of them to drop the full-time MBA in favour of the Masters or online programs.

The latest to join the list is the University of Illinois’ Gies College of Business which has announced scrapping of its full-time, on-campus program. It will focus more on its online MBA option, the $22,000 iMBA, which has seen huge growth since its launch in 2015. Applications to the program are expected to touch 3,200 this year, up from 1,099 in 2016.

Compared to the applicant’s interest in the online program, Gies’ full-time program dropped to 290 this year from 386 in 2016. The school enrolled fewer than 50 full-time students in each of the past three years.

Gies is not the only school that have sub-optimally sized programs that cannot support the expenses required to deliver a quality program. The University of Iowa, Wake Forest University, Thunderbird School of Global Management, Virginia Tech and Simmons College are among those that closed the full-time MBA programs in recent years.

John A. Byrne, editor-in-chief of PoetsandQuants.com, in an article in Forbes, points out that at present, nearly 32,000 students are enrolled in the 25 biggest online MBA programs in the US.  He cites four factors for the decline in interest for a full-time MBA.

The first is the strengthening of the US economy that spells more employment opportunities even without the acquisition of an MBA degree. The rising cost of the programs and the unwillingness of the aspirants to take on huge amounts of debt burden are other reasons.

President Donald Trump’s stricter policies on immigration have resulted in a substantial fall in the number of international candidates who had been helping to offset a continual decline in domestic applicants for a number of years.

Availability of shorter, cheaper alternatives in the form of the one-year and online options to speciality master’s degrees in specialisations such as data analytics and entrepreneurship is yet another reason.

Right on top would be questions about whether the MBA is at the same level as the full time program. Reputed colleges usually ensure that it carries the same credit as the regular course by supplementing online classes with connect weeks, capstone projects and even option of travelling abroad.

For instance, Kelly Direct Online (Indiana University’s Kelly School of Business) has in-residence Connect Weeks and opportunities for global immersion to ensure that students remain fully engaged with professors, classmates and the world—both in a virtual classroom environment and in person.

The second would be whether it is an accredited program. Employers would feel more comfortable to know that an outside agency had vetted and rated the program at a certain level.

In the US, the accrediting agency should be recognized by the U.S. Department of Education or the Council for Higher Education Accreditation.Credits earned at schools without recognized accreditation may not transfer.

While most employers accept online MBAs from reputed schools, others may ask questions like why the candidate chose the online route. Earlier, they used to express concerns regarding whether students could learn vital business skills usually gained in a classroom setting, especially group collaboration.

However, most of the programs lay special emphasis on online interactive sessions, besides one or two on campus interactions. The syllabus is also of the same level as full-time courses. Increasing acceptance of online MBA has made it he most popular graduate degree pursued online, according to a 2015 survey by Aslanian Market Research and the Learning House.

Then comes the question whether the candidate should mention status of his degree as an online course. No need, says most experts. Executive search firms also ask hiring managers if the firm is open to recruiting candidates with online degrees.

Among the advantages of pursuing an online MBA course is the amount of flexibility it offers. Instead of being confined to the campus, students could travel far and wide to garner real world experience. With wi-fi connectivity available in most places, especially in Europe, including while travelling by bus or train, completing assignments on time is no big issue.

While there are deadlines for assignments, it is left to the student to complete them on time, whether by sitting up late at night or utilising any part of the day is of no concern.

Each one has to draw up their own schedule and work accordingly. This again allows a wide latitude for meeting regular job obligations, family commitments and socialising too. Savings also come in the form of not having to spent on lodgings and to a certain extent on books as most of the course material is available online.

The University of Illinois at Urbana Champaign’s College of Business has rolled out a new MBA program, dubbed the iMBA, through online education platform Coursera.

This is the first time a business school has put an entire MBA curriculum online for free. Students only pay if they want a certificate for completing a course or a sequence of courses for college credit ($1,000 per course or $3,000 for the specialization) or the actual MBA degree (which will end up costing roughly $20,000). 

As many as 180 business schools already offer online MBA degrees, including seven whose residential MBA programs rank among the Top 50 and at least another 14 from schools that rank in the second half of the Top 100 programs.

At roughly $20,000, it is the most affordable online MBA from a top business school in the U.S. and less than half the price of the school’s residential MBA program for in-state students.

But what will set the iMBA at Illinois apart from those offerings is cost. At roughly $20,000, it is the most affordable online MBA from any top business school in the U.S. and less than half the price of the school’s residential MBA program for in-state students. Illinois administrators say the low price tag is “one-third the cost of online MBAs from institutions of similar stature to the University of Illinois.”

Online MBA programs at established business schools, such as those offered by the Tepper School of Business, Kenan-Flagler Business School, and Olin Graduate School of Business, charge students anywhere from $78,200 to $108,080 for a full MBA. And other schools that have jumped into online business education, such as Harvard Business School, have shared only a sliver of the courses the University of Illinois will release on Coursera. 

Price aside, Coursera says the iMBA program is unique because it will let students “stack” credentials, meaning they can pile on courses in certain skills that may help them advance in their careers or even find new jobs. 

“It’s a completely innovative way of aggregating credentials, which really allows people to consume what they want, when they want it,” says Daphne Koller, president of Coursera. “If you want to learn digital marketing, you can sign up for that specialization; if you want to learn about business negotiation, you can do that; and if you want the full MBA, you’re on the path for that as well.”

The iMBA programme is now live on Coursera and applications are open till September 2015.

Admission to the iMBA degree program requires a Bachelor’s degree or equivalent and “strong candidates” are expected to have three or more years of professional experience in business operations or management. Completing one or more of the Coursera Specializations prior to applying to the full degree program is an added advantage and reccomended. Although no GMAT or GRE score is required to apply, both are recommended. Additional application requirements include a personal statement, letters of recommendation, and proof of English language proficiency

The market for online business school education is getting crowded and reports suggest the online learning wave could wipe out half of U.S business schools by 2020. (Image courtesy Sierraclub)