Indiana University’s campus, where the Kelley School is located, has been named one of the most beautiful campuses in the country.
Two years can be a long time to be out of the workforce.
That means lost revenue, stalled momentum, and crippling debt. Of course, a one-year MBA means a breakneck pace where students can miss out on valuable elective courses, networking opportunities, and memorable times. What if MBAs could return to work during their second year without losing those deep dives into a specific industry, geography or issue? What if students could still stay connected as a sophomore while enjoying the flexibility to take courses when it’s best for them?
The Kelley School may have found that sweet spot—a middle ground, a winning way where full-time MBAs can complete their second year without being tied to campus. In October, the Kelley School announced the launch of the Kelley Full-Time + Flex MBA program. Basically, students complete their first year in Bloomington before getting the option to complete their second year online.
“The single largest binding constraint is the opportunity cost of leaving a job for two years,” explains Patrick E. Hopkins, associate dean at Kelley. “We know we have potential students that span the horizon of need. We are saying that no two students are alike. Some will benefit from a two-year fully immersive on-campus experience, but on the other hand, we have students who want to rely on the flexibility of the online program. There is a middle there.”
Hopkins frames the Kelley School as “first movers” in this space, a bold position that allows students to gain some advantages. Find a job after an internship? Well, a student can start work and complete the online program during evenings and weekends. With Kelley graduates earning roughly $145,000 to start, this puts them on the fast track to recouping their opportunity costs faster. Even more, it would theoretically wipe out the opportunity cost of the second year, which could be as much as $77,000.
While sophomores would still pay the costs of food and rent, not unlike residential students, the Kelley MBA would start paying off the debt — which at an average of $47,699 ranks among the lowest for top-tier programs. What’s more, it doubles down on a Kelley MBA powerhouse, with the school ranking second for the fastest return on investment (ROI) according to one source.
That said, second years will still pay the same full-time residential tuition regardless of whether they choose the online route. However, the Kelley Direct program is exactly why the Kelley School can offer this option. It is consistently ranked among the best online MBA programs, whether measured by Poets&Quants (2nd), US News & World Report (1st), or Fortune Education (1st).
“I think we’re one of the few schools that has this great selection of online electives all taught by full-time faculty,” adds outgoing Kelley Dean Ash Soni. “No extras. We only have one MBA at Kelley. My MBA is from the full-time program, but someone who gets an MBA from the Kelley Direct program gets the same MBA as me.”
Exterior of Kelley School
This raises the big question: How many full-time MBAs will choose the online program as their second year? According to math, the freshman class includes 103 students, with a total of 1,400 students studying online. On the face of it, this change opens the possibility for the online option to cannibalize its residential sibling. However, John D. Hill, faculty chair of the Full-Time + Flex MBA, believes it will be a boon to the residential program.
“Most of our current full-time students are here for a two-year, fully immersive experience. We believe this will open up another market for us that other schools cannot compete with. We look forward to growing the numbers in our residential program.”
Why not? Current students love the program! In a 2024 survey conducted by Financial TimesKelley MBA posted the 4th highest score by alumni and students for career services center effectiveness. When The Princeton Review surveyed current students last spring, the school ranked among the best for faculty, administration, family-friendliness and classroom experience. In terms of curriculum, Kelley students gave the program the second highest score for Marketing (and 10th for Consulting). When it comes to the most advanced ideas, Kelley finished in the Top 10 in both Financial Times and UT-Dallas business school research rankings for the scope and quality of its research. One reason: Kelley employs over 325 faculty members and caters to over 14,000 undergraduate and graduate business students—a scale that is nearly unmatched in business education.
Translation: If a student wants to learn more about something, chances are there’s a faculty member who can help.
While the Kelley MBA benefits from its academic excellence and high satisfaction levels, it also offers something truly unique: a distinct identity and mission. The Kelley School is a place where career changers go to switch industries, functions or geographies. This is one reason why the program includes an integrated core of learning business during the first semester and a half. Instead of separating subjects and teaching them individually, they are taught together. As a result, first years can see how areas such as finance, strategy, marketing, operations and general management intersect and influence each other at every level of an organization.
However, before Kelley learns about the business in the first years, they spend time working on themselves to prepare them for their transition. To begin the program, MBAs complete Me, Inc., a three-week mix of reflections, group exercises, and intensive training. In the process, early years experience how others see them, confront their underlying drivers and skills gaps, map out their personal journey and develop a plan to get them from where they are to where they want to be. they go In the process, they gain the awareness needed to develop a pitch and brand that will attract employers.
“[Me, Inc.] it’s an amazing opportunity to increase one’s self-awareness even before classes start,” explains Lívia Bragança Claudio, who will graduate this spring. “I had already gone through a career coaching experience before and realized how important it is to clearly identify one’s strengths and values so that we can move towards and achieve our main life goals. I feel that this chance to dive deep into my personal story early in the MBA program is a Kelley differential.”
Kelley’s Me, Inc., develops a deep understanding of the personal stories of first-year MBA students and how it relates to the next steps in their careers. The “Life Story” exercise took place on August 7, 2017.
These efforts do not end when the Integrated Core begins. Each full-time student is assigned an executive coach—someone who has undergone hundreds of hours of coaching training before receiving certification from a professional coaching association. In this way, students are held accountable for continuing to answer the big questions, work on their weaknesses, and implement their plans.
“Students continue to meet with their coach throughout their time at Kelley, although it is not required as much as they go through the program,” according to Rebecca Cook, executive director of Kelley Career Services, in a 2024 interview with P&Q. “We pride ourselves on having good relationships with all our students and know what they are looking for and where they are in their job search. The more we know, the better we can help them.”
The same goes for helping Kelley’s first-years gain vital experience in their chosen industry. Before their summer internship, MBAs must complete an Academy. Think of it as a dive into their field. It includes industry-specific subjects, networking events and training – along with a consultancy project to provide real-world experience. On Academy Fridays, MBAs take field trips and attend industry speakers to get an inside look at their industry. The bottom line: academies position students for a fast start and greater impact during their internships, enabling them to make a strong impression on their future employers.
Currently, students can choose between seven academies: Business Marketing, Capital Markets, Consulting, Consumer Marketing, Strategic Finance, Supply Chain and Digital Enterprise and PLUS Life Sciences. First years also enjoy the flexibility to design a bespoke academy in an area such as Healthcare. As second years, they can complete academies related to Entrepreneurship or Leadership. According to Ben Krebs, a ’23 alum and EY-Parthenon consultant, it’s hard to argue with the success of the Academies.
“I was extremely impressed with the placement of my classmates for both internships and full-time jobs. Our Consulting Academy is placing students at MBB as well as other boutique firms. Our business marketing academy is sending people to Microsoft, Dow Chemical and Chevron. You might think that a school in southern Indiana would have trouble placing investment banking MBA candidates since we are so far from New York and other traditional financial centers. On the contrary, our Capital Markets Academy members have almost a 100 percent success rate in getting placed for Investment Banking…During my time at Kelley, the only inhibitor to success was my own self-doubt. I had every resource available to me to improve and feel supported in the process.”
Beyond Kelley’s attention to each student’s growth, there is Kelley’s hidden advantage: Bloomington. Within a 4-5-hour drive, you’ll find Chicago, Detroit, Cincinnati, St. Louis, Columbus, Louisville and Nashville. Indianapolis is just an hour north. In other words, MBAs have fast access to top companies like Eli Lilly, Procter & Gamble, Humana, and Nationwide. At the same time, MBAs can spend two years in a safe, affordable, slow-paced, family-friendly city where they can enjoy the best of four different seasons. Whether they choose to spend two years in Bloomington—or choose the Kelley full-time + Flex option—you can bet the MBAs won’t regret investing their time at Kelley.
“Coming from Los Angeles, which is spread out, sometimes it can take an hour to drive 10 miles,” explains 23-year-old Brittany Bolden. “But here, people live either within walking distance or 10 minutes by car from each other. It makes gathering or social activities or doing homework so easy, and you can form a deeper connection with your classmates.”
Next page: Carnegie Mellon University, Tepper School of Business