How to Finance your MBA in USA?August 16, 2022 2022-08-16 8:47
How to Finance your MBA in USA?
How to Finance your MBA in USA?
Studying MBA abroad is like a dream for a lot of students. However, it is not an easy task to pursue as one of the biggest challenges is the cost of education at international universities. Besides the tuition fee, other expenses like the cost of living, visa fees, flight tickets, etc. burn a hole into your pockets.
There is no other way around it: an MBA is expensive. But it is an investment. Usually, the financial cost of undertaking an MBA is going to pay off throughout the rest of your career. However, it is still beneficial if you find a way to fund your MBA studies, not to mention living expenses and other costs.
Most MBA students end up combining funds from various sources, including scholarships, loans, savings, and more. This article provides insights into the most popular ways to finance your MBA studies. Let us have a look.
1. How to get MBA scholarships/ Grants in the USA
The most common type of financial assistance when it comes to paying for your MBA, or any degree for that matter, are scholarships that offer students the opportunity to focus entirely on their studies. Scholarships from universities and business schools tend to be based on one of two factors: academic excellence, financial need, or both.
For scholarships based on academic performance, schools will often look at a combination of factors, including GMAT score and undergraduate GPA. Your profile will be evaluated for need-based scholarships based on your background, your financial situation, and what you can contribute to the MBA cohort.
Sometimes, candidates are instantly considered for a scholarship when submitting their applications to an MBA program, but the school may require an essay/letter of motivation. A large number of merit-based scholarships are based on a first-come, first-served process, so it is recommended that you apply for an MBA as early as possible.
2. Student Loan
Student loans are specially designed to cover study costs. Some cover only tuition fees, while others cover living expenses as well. A student loan has a much lower interest rate compared to regular loans, and you’ll only start repaying it a certain period after your MBA graduation. This way, you’ll have time to find a good job and stable income to start paying back your debt.
Many countries have student loan schemes, often funded through governmental organizations. In the US, schemes like the Stafford loans are designed with students in mind and generally offer more lenient terms than private loan institutions.
However, more than 80 percent of MBA candidates can’t get loans because they have no credit history in the country where they will study, they lack the assets they need for collateral, or they live in a country without stable student loan programs or where banks are reluctant to risk lending to students studying abroad.
3. Employers sponsorship
An MBA won’t only add value to your résumé but also your employer’s business. If you are expecting to stay with your employer following graduation, it could be worth asking your employer whether they would be willing to contribute to the costs of your study. They will benefit from the connections you make during the program and your new skills.
And suppose you are an international student wanting to use your study time to hone a second language, perhaps English or Mandarin. In that case, it will be not only you but also your employer who reaps the rewards of your increased ability to do business in another language.
Employers may agree to cover an employee’s tuition fees and perhaps also living costs with an expectation of loyalty: that the employee will stay with the firm for a certain amount of time following graduation.
MBA students and their employers sometimes make agreements that if an employee leaves the company earlier than expected, they will pay back a portion of the MBA costs.
Besides these, employer sponsorship and personal savings are also some of the popular ways. Financial aid offices within business schools often have tried and tested ideas for funding, so if you are having difficulty, remember to make use of their support. In order to give yourself the best shot at gathering funding for your MBA, starting early, and doing your research pays well.