Financing Your MBA
If you have decided to return to school or to continue your education by obtaining a MBA, you need to give thought to how you will cover the costs. Some students will have the advantage of an employer sponsored tuition plan, where some or all of their graduate school costs will be covered. Other students will be continuing their undergraduate studies by directly entering into a MBA program, often covering the costs through part time or full time employment or through obtaining financial aid and student loans. Other returning graduate students will work through their graduate program, earning enough money to cover their household requirements and their MBA program. In addition to the actual raw cost of the tuition and books, there are other costs associated with a MBA.
The Cost of a MBA
The total cost of a MBA is often more than just the price. There are out of pocket costs which include tuition and fees, books, equipment, supplies, relocation if a move is involved to attend school and living/household expenses. In the event that the student does not work or leaves their current place of employment to attend school, there is a lost opportunity cost. Many students do not take this figure into consideration when evaluating their MBA possibility, and are often as a result surprised at how significant this figure can be. If financial aid, including student loans, is leveraged, the long term cost of a MBA should be considered, specifically looking at how interest impacts the amount of aid utilized.
Financial Aid
Just as with an undergraduate education, students may have the option to apply for financial aid to fund their degree. There are several types of financial aid which may be available to students seeking a MBA, including:
 Student loans
Work Study
Grants
Scholarships
Employer reimbursement
Tax credits
If student loans are an option, you will have two types to select from- unsubsidized and subsidized. One loan type allows you to defer interest and payments while you are attending school, while the other requires you to make payments while you are pursuing your education. There are three primary types of student loans which may be of consideration, including federal loans, campus-based loans and private loans. Each loan type will offer different payment terms, loan amounts, interest rates and terms. Be sure to consider each loan carefully before making a final decision about your financial needs. |
