A Master of Business Administration (MBA) degree can easily cost over $100,000, but the investment can pay off if it helps you qualify for a broader range of advanced careers. To pay for an MBA, you may need to apply for fellowships, scholarships or loans. You may also be able to take advantage of employer-sponsored programs. Read on to learn more about some of the best ways to finance your degree.
Ways to pay for your MBA
Don’t let tuition sticker shock deter you from achieving your educational and professional goals. Schools, organizations and businesses all offer programs that can make your degree more affordable, and student loans can fill in any gaps.
MBA fellowships, grants and scholarships
Fellowships, grants and scholarships are types of funding for your education that you do not repay. Many of these programs consider your academic record, but some are need-based or geared toward specific groups of students. You may also need to demonstrate your professional experience, volunteerism and community leadership.
Corporations, foundations and schools all offer this type of aid. With some programs, you may have access to career mentors, networking opportunities and summer work experiences in addition to the basic aid package.
Many companies recognize the benefits of investing in their employees through tuition assistance programs or scholarships. Statista found that 56 percent of surveyed employers offered tuition assistance to employees in 2019. Employers find that these programs not only help develop leaders from within the company but can also serve as a recruitment and retention tool.
Talk with your manager about educational opportunities through the company. Programs may offer upfront assistance or reimburse you for the successful completion of classes. They may also limit educational options to degrees that align with company priorities or require you to continue working for the company for a defined period of time after graduation.
MBA student loans
Most graduate students take out student loans to cover the cost of tuition and fees, and MBA students are no exception. When it comes to borrowing money via federal student loans for a MBA, options include Direct Unsubsidized Loans, which let you borrow up to $20,500 each academic year, and Direct PLUS Loans, which let you borrow up to the full cost of attendance.
Borrowers often turn to private student loans when they surpass borrowing limits with federal student loans or to take advantage of lower interest rates. With private student loans, interest rates can be incredibly competitive, and that’s especially true if you have a high credit score.
Business schools encourage applicants to spend a few years in the workforce before starting their MBA. Professional experience equips students with an understanding of the business world and the practical application of their new skills.
If you begin your professional experience knowing that you will return to the classroom, you can start saving toward your goal. Using personal savings can reduce your dependence on loans that must be repaid — with interest.
But use caution when pulling from your savings account. Most experts suggest keeping three to six months of expenses tucked away for emergency situations and surprise bills, and paying for an MBA out of pocket is not worth it if you deplete your emergency fund.
Frequently asked questions about paying for an MBA
How much should you expect to pay for an MBA?
MBA Today reports total tuition fees for top MBA programs as anywhere from $55,727 to $161,810. However, your price could be higher or lower depending on where you attend school, which type of program you enroll in and how long it takes you to complete your degree. Also keep in mind that you’ll need to budget for books, room and board, supplies and travel.
What funding options are available to international MBA students?
International students may apply for MBA scholarships and fellowships from their school and other organizations. Certain qualified non-U.S. citizens may apply for federal loans, and some international students can qualify for private student loans with a co-signer. Your home country may offer student support for international study as well.
Is an MBA worth it?
An MBA can qualify you for management positions in your organization and higher pay, but you’ll have to weigh this against the potential debt you’ll leave school with. Ultimately, an MBA program is worth it if it helps you achieve your career goals and makes sense financially.
Why is an MBA so expensive?
Graduate programs require an investment in faculty, research and resources. Business schools also compete for knowledgeable professors with business experience. Several schools, however, have taken steps to rein in costs by implementing guaranteed tuition and tuition freezes over the course of a program.
How do I pay for an executive MBA program?
Executive MBA programs tailor their curriculum to executives looking to develop their leadership abilities while continuing to work. The Executive MBA Council’s Annual Member Program 2020 survey found that the average program charges $82,883. You can pay for an executive MBA program as you would any other MBA program — with scholarships, grants, tuition reimbursement and student loans.