MBA from an Average College: Smart Move or Waste of Money?

When we think of pursuing an MBA, we usually consider the top Tier-1 institutions only. However, sometimes you may be unable to afford it, you may not have scored enough to be eligible for those institutions, or you may be affected by other factors. In those cases, an MBA from an average college might seem like a good option. But is it worth it for your career?

An average college is the B-school beyond top-tier colleges. Such colleges charge moderate fees, have an okayish rank, and have a decent recruiter visibility. So, will this choice pay off for you? Let’s find out.
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MBA from an Average College: What Do the Statistics Say?

Here’s the data that explains life after MBA from a normal college:

1. Placement Numbers & Salary Benchmarks

In top MBA colleges like IIMs, SpJIMR, and FMS, the average packages hover around INR 30-35 LPA. For example, IIM Ahmedabad had INR 34.5 LPA in 2025.

In contrast, average packages in many mid-sized or average colleges tend to fall in the INR 8-15 LPA range. A case in point: University Business School (Panjab University) had an average package of INR 12.95 LPA in the 2024-25 season. (Source: The Times of India )

2. Return on Investment (ROI)

Colleges with low fees and moderate placement packages sometimes have surprisingly strong return on investment. For example, Welingkar Institute and JSS Academy appear in ROI lists: Welingkar with a moderate fee and INR 8.50-INR 10.76 LPA average salaries; JSS with even lower fee, roughly INR 2 lakh, and INR 10.7 LPA returns.

FMS Delhi stands out: with fees around INR 2–2.5 lakh, average salary of INR 34 LPA, its ROI is among the best in India. (Source: iQuanta )

3. Placement Rates & Recruiter Confidence

Some average-level colleges show decent placement rates. For example, University Business School (Panjab University) achieved 85% placement for an MBA batch in 2024-25, with a top package of INR 25.11 LPA.

But these placements often have fewer high-end offers, fewer marquee recruiters, and less consistency in sectors like consulting or product management compared to top B-schools. Top colleges, on the other hand, report near-100% placement and wide recruiter participation in diverse sectors. (Source: First Report News )

4. Median vs Average – Hidden Gaps

Brochures often highlight average packages, but in average/below-top colleges, the median salary is significantly lower than the average, because outlier high offers skew the average. In top colleges, the average and median are closer.
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Pros & Cons: What to Expect after an MBA from an Average College

The limitations and advantages of an MBA from an average college are as follows:

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An MBA from an average-level college can be good. That will be the case if you manage expectations, go with the right college, match your career goals realistically, and work harder on skills, networking, and internships. The difference in salary potential and prestige is real, but for many students, the trade-off is acceptable, especially when the cost burden is lower and the return is reasonably decent.

If you’re still unsure and need expert guidance, we recommend contacting our team at CollegeDekho !