7 Ways To Finance Your MBA

You know that an MBA can cost you $200,000-$275,000+.

How do you finance that?

Resources

+ MBA Program Stats ​here​.

+ MBA Program Deadlines ​here​.

If you’re considering an MBA, you know the possible career benefits. I’ll tell you that the difference between the salary I started with right out of college and the offer I received after my MBA summer internship was 6X. And that was in the space of 4 years.

The right MBA can change the trajectory of your career.

Cost of Attendance Breakdown

Tuition | $70-90k/year | $140-180k total

Fees | $2-5k total (for pre-term orientation programming)

Room and Board | $20-26k/year | $40-52k total (this will vary based on the school’s location cost of living, and it is an expense that you can control. You can live with a roommate, you can opt for more affordable housing)

Health insurance | $4k/year | $8-10k total (for internationals, know that this is mandatory, and typically your school will share details on how to get yourself insured properly)

Books, supplies, etc. | $5-6k total (this is another expense you can control, but it covers the cost of computer, software, books, etc.)

Club membership fees, networking events, student trips | $10-20k total (majority of student clubs charge membership fees per semester or per year to cover operating costs, some networking events like conferences, whether school-run or external, are ticketed, and then the bulk of this expense bucket are student trips which can become pretty expensive)

7 Ways to Finance Your MBA

In addition to personal and family funds, here are seven ways you can cover the cost of your business school investment:

1. Company Sponsorship: if you work in consulting or finance, your company may already have a sponsorship program. But even if they don’t already, it is an avenue that you can explore. How this is structured typically is that the company covers your tuition – either by paying the school directly, giving you the funds to pay the school, or refunding you the tuition amount after you complete school and return to work at the company (which means you may need to take out a loan initially and then be paid back by your company afterward). Some companies allow you to spend your MBA summer interning elsewhere, while others require that you return to the firm for the summer internship. You may be able to negotiate the terms of your sponsorship and even propose it to your company if it’s not an offering that already exists.

2. Finance Summer Fellowship: this is an opportunity offered by finance companies like Evercore, Goldman Sachs, and TIAA, for first-year MBA students from a traditionally underrepresented demographic in finance like Black, Latinx, and Native American. You apply for the fellowship and a summer internship before starting business school. If accepted into the fellowship program, depending on the company, you receive scholarships between $35,000-$40,000 and usually an additional financial award upon completing your internship and receiving and accepting a full-time offer.

3. School Fellowships: business schools offer fellowships to incoming MBA students every year. The amounts and selection criteria vary. Most schools offer merit-based scholarships only and select based on the strength of your application. They may also have named scholarships endowed by alums for students who meet specific criteria like country of origin, industry, etc. Meanwhile, a school like HBS offers only need-based fellowships. So, you apply upon admittance to the program. To compare your schools against the types of aid offered, acceptance rate, average test scores, etc., check out the MBA Program Stats free spreadsheet ​here​.

4. External Scholarships: there’s money out there. Before, while, and after you apply to business school, look for external scholarships and apply for everything you qualify for. Any amount you can get will help offset your cost. When you’re searching, you can think about your various identities and run a targeted search based on them. For example, you could search for scholarships for African students, Indians, female entrepreneurs, women in tech, etc.

5. In-school Grants: some schools offer the opportunity to offset the cost of experiential learning — ventures and trips. Wharton, for example, has a Wharton Student Experience Fund that students can use to fund global immersion programs and select travel experiences. Some schools also have entrepreneurship grants. Keep an eye out for eligible grant opportunities while at school.

6. Work Opportunities: you can make a bit of money working while you’re at school. Some students do contract work or intern during the school year. There are also employment opportunities on campus, like being a teaching assistant or a student life fellow. You may not make thousands and thousands, but you could make enough to cover some club memberships and networking events, maybe even a trip or two.

7. Loans: last and least – loans. You may qualify for federal loans if you’re a US citizen or permanent resident. For internationals, some loan providers partner with the top business schools. You are often given a grace period after graduation, during which you are not expected to make payments. Some providers like Prodigy Finance do not penalize you for early payments, so you can pay back the loan as soon as you start to make money — so if you get a generous signing bonus, for example, you can apply that to your loan without penalty. If you’re going this route, ensure you understand the terms and all the conditions you are signing up for.

While those are 7 ways to finance your MBA, be intentional about how you spend your money in school. It can be all too easy to blow your budget and be pulled in different directions by the many incredible opportunities business school offers. So, decide what matters most to you, prioritize spending or investing in that, and let go of the rest. You can’t do it all.

I hope this has been helpful! Please reach out if you have any questions.

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Cheering you on,

Aniekeme