How to fund your MBA
How will you pay for your MBA? An MBA is a significant financial investment. The most expensive MBA programs might cost over $200k all-in. The manner you pay for business school can affect the possibilities accessible to you in your job down the line. However, there is some good news. With novel payment methods on offer, business schools are attempting to make themselves more accessible. It doesn’t have to be so difficult to pay for your MBA. Here are funding options for your MBA:
Nowadays, hundreds of scholarships (full or partial) are available throughout all MBA programs. In order to recruit the top candidates, business schools have offered significant scholarships to fight against the talent war. There are also country-specific scholarships, such as the Chevening Scholarship, which allows students to study in the United Kingdom, as well as external awards based on specific criteria or demographics. Some management schools, on the other hand, are exploring new ways to attract top talent and make the MBA more inclusive. WP Carey School of Business at Arizona State University has gone above and above by granting full scholarships to all applicants. There are hundreds of scholarships available for you, to get a grasp over them you just have to be thorough with your research and explore each option possible.
The following are the various types of MBA scholarships available to Indian, international, and other business school students:
- Scholarships awarded on the basis of merit
- Scholarships based on financial need
- Scholarships based on gender and diversity
- Scholarships from external sources
Loan forgiveness programs
Some management schools have loan forgiveness programs that allow students to wipe off loan payments if they work for non-profits or the government/public sector after receiving their MBA degrees. For example, the loan forgiveness program at Yale School of Management began in 1986 and was the first of its type at a business school. Graduates can pursue professional opportunities in the public and non-profit sectors without having to worry about student debt payments, allowing them to pursue their passions for policy, social justice, and community involvement.
Their program assists the repayment of annual need-based loans. Depending on the year of entry and program, the income level at which the program fully supports debt repayment is changed. The Loan Forgiveness Program is also open to international students. You can grab more information here.
Several companies include tuition reimbursement programs in their standard benefits packages. Companies keep funds aside for this reason. Employee sponsorship is more likely to be offered by consulting firms and financial services firms. Candidates from organizations that have not previously funded MBAs will have to work harder to impress them and justify the investment.
Crowdfunding and savings
Personal savings are an underestimated source of capital. Many MBAs can boost their savings by relying on their spouses, relatives, and friends. Some people use these connections, while others use crowdfunding sites like GoFundMe or Crowdfunder. Income from fellowships and internships, in particular, can help cover costs for two-year programs.
MBA student loans
A large number of US business schools offer student loans without requiring a co-signer from the United States. This means that the B-school will guarantee your admission. As a result, once you’ve been accepted, the college will usually assist you with the rest of the process. The collateral on the table is actually your degree’s reputation! Each of these universities offers International MBA students Private Student Loans and other financial aid based on the applicant’s financial situation, profile, and ability to repay the loans. Currently, there are different types of loan assistance programs offered by B-schools. Some of them are:
For overseas students, Fuqua offers a significant loan assistance program that makes it much easier for any of them to invest in their education. International students who take up a no-cosigner loan can borrow up to 90% of their entire cost of the program, which Fuqua estimates to be $186,630 for the two-year MBA.
Columbia University in New York City provides loan assistance to MBAs who want to work for the public and non-profit sectors, where salaries are often lower. International MBAs are eligible to apply, and those earning less than $80,000 are given priority. The amount of money you can borrow varies from $2,000 to $10,000.
The program provides funding for people interested in pursuing professions in social business, which typically pay less than regular MBA jobs. MBA graduates can apply for a loan to assist them to pay off their student debt within the first ten years following graduation.
Loans for your MBA with a co-signer in the United States
If you are considering pursuing an MBA in the United States and you have a US citizen relative who trusts you and can act as a guarantor, you might consider using a co-signer loan as an investment method for your MBA. Co-signing entails having someone who has lived in the United States for a long time sign the loan contract with you. Yes! You are still responsible for the debt after you graduate, but if you do not pay it off, your co-signer will be held responsible. The bank decreases its risk by having a chance to collect money from the co-signer via the co-signer option. Wells Fargo and Citizens Bank are two banks that offer loans to international students who have a co-signer from the United States.
Collateral Education Loans might help you pay for your MBA
Education loans with collateral are those for which the bank will take some type of “guarantee.” If your parents own any assets, such as a house, a piece of property, or any long-term investments, you can use them as collateral to obtain a bank loan. Many students are hesitant to take out such a loan because they believe it will cause them to inconvenience their parents. However, you are only doing so to get the loan approved; once you graduate, you should plan to return it. Furthermore, banks would not repossess assets unless they are certain there is no alternative way to recoup their debts.
The financial alternatives available and the return on investment may influence your decision to pursue an MBA, as well as your choice of institution and location. Make sure you think about all of your options before making a decision.
If you plan to pursue your MBA from abroad, MentorMpact provides the best guidance you can ever get! MentorMpact works with the students and for the students. We value your trust in us, and we creatively partner with you to accomplish your dream school admission. Our approach resonates with proper mentorship. And we ensure the best for our clients. For more information, visit MentorMpact.