Stanford GSB may waive GMAT only requirement

BusinessWeek is reporting that Stanford Graduate School of Business is considering accepting GRE scores for applications for its MBA program starting Fall 2007. While there is no official word on this from Stanford University, BusinessWeek quoted Stanford's Director of MBA Admissions Derrick Bolton on this reported move. The Stanford GSB is also considering waiving the application fee for certain groups of applicants. Other leading B-Schools may follow if the Stanford GSB sets an example.

If all this is indeed true, then it is just great news for applicants from developing countries like India. The $250 fee for GMAT, $140 fee for TOEFL and the $200+ application fee is a very steep barrier for most applicants. This is more than a month’s savings for most applicants from a developing country. This forces most applicants to either limit the number of attempts at GMAT and forces them to go ahead with their applications even if their first attempt at the test was not in line with their expectations. Applicants are also forced to choose their target schools very carefully as they most of the time have very limited funds for the application process. Add to that most schools continue to insist on receiving hard copies of additional documents like transcripts which adds to the cost of application process. The high cost of applying makes even applicants from North America and Europe balk at the cost. Most applicants end up 'donating' up to $1000 to $1500 for the four to five schools on an average they apply to. Good money for Uncle Sam, but a lot of heartburn for most international applicants.

There are some schools in India like the upcoming Indian School of Business (ISB), which accepts GRE scores in lieu of the GMAT. ISB also accepts the IIM-CAT scores but insists on a 90 percentile score either in the GRE or GMAT later on. This is mainly to facilitate broad-basing the applicant pool in India. The number of GMAT test seats available in major cities in India can outstrip demand almost round the year.

While waiving the application fee requirement may boost the application volumes significantly, the B-Schools admissions teams must find a way to manage the process. While most schools claim they waive application fees in exceptional situations, the process can be cumbersome. Certain schools like Ross School of Business at University of Michigan, Ann Arbor refund the application fees for some candidates based on certain criteria. While this may be a way to regulate application volumes and ensure that only serious candidates apply, at the same time it can help the applicants from groups that need such help.

So go for it Stanford!!! Set an example!