Pursuing an MBA can be a significant investment in your future, but the cost of tuition can be a substantial financial burden, especially with interest rates and inflation still elevated in many advanced economies.
There are several strategies you can employ to offset the cost of your MBA’s tuition fees, making it more affordable and manageable.
“Deciding to pursue an MBA is a big commitment, a substantial investment in one’s self and one’s future. We encourage candidates to research and apply for a wide selection of scholarships, loans and funding in order to reach your career goals,” says Sara Vanos, executive director of MBA admissions at HEC Paris.
She adds that, while inflation has had an impact on tuition fees, HEC has also seen an increase in post-MBA salaries – something other top business schools report, too.
1. Scholarships and grants
Many business schools offer merit-based scholarships to attract top talent. These scholarships are typically awarded based on academic achievements, professional accomplishments and leadership potential. To maximize your chances, ensure your application highlights your strengths and achievements.
All applicants admitted into the HEC Paris MBA will have the opportunity to apply for scholarships, with more than €1 million in total awards offered each year. Candidates are automatically considered for many scholarships but some at HEC require essays to be submitted.
At many business schools, need-based grants are available for students who demonstrate financial need. These grants do not require repayment and can significantly reduce your tuition burden. Be sure to explore grant opportunities specific to your chosen institution.
For example: around half of MBA students at Harvard Business School receive need-based scholarships, with individual awards varying from $2,500 to $76,000 annually. Last year, the average yearly need-based scholarship was $92,000 over two years.
Numerous organizations, foundations and corporations offer scholarships to MBA students. Research and apply for these external scholarships, which can range from a few hundred to several thousand dollars each. Websites like Fastweb and Scholarship.com can be valuable resources for finding opportunities.
2. Employer sponsorship
Some companies offer full sponsorships for employees pursuing an MBA, covering tuition fees and sometimes additional expenses. If you’re currently employed, check if your company has an educational assistance program and discuss this possibility with your HR department.
Even if full sponsorship isn’t an option, many employers offer partial tuition reimbursement. This can cover a significant portion of your expenses, but there may be strings attached.
“Accepting employer funding can come with one or two year contracts following the MBA studies,” says Virginie Fougea, the global director of admissions and financial aid at INSEAD, adding that how and when funding is awarded varies from one company to another.
“It is also well-known and a usual practice for consulting firms to retain their talent pool with the possibility to do an MBA at some point.”
3. Assistantships, fellowships and internships
Teaching assistantships (TAs) provide a stipend and often include tuition remission. As a TA, you’ll assist business-school professors with course-related tasks such as grading, leading study sessions and conducting research. This not only helps with tuition costs but also enhances your resume.
Similar to TAs, research assistantships (RAs) offer stipends and tuition benefits. RAs work on research projects, providing valuable experience in areas such as finance or organizational behavior. You can explore RA opportunities within your business school or affiliated research centers.
Internships, especially paid ones, can offset tuition costs while providing valuable industry experience. Look for internships that align with your career goals and consider those that offer tuition assistance as part of their compensation package.
“Summer internships in a two-year MBA program make that format especially attractive for career switchers,” says Brian Mitchel, associate dean for the full-time MBA at Emory University’s Goizueta Business School.
4. Student loans
In the US, federal student loans typically offer lower interest rates and more flexible repayment options compared to private loans. Direct Unsubsidized Loans and Grad PLUS Loans are common options for MBA students. But, be sure that you understand the terms and repayment plans before borrowing.
Unfortunately, these loans are not available to international students. If you’re an overseas MBA candidate, or if federal loans don’t cover your entire tuition, private student loans from providers such as Prodigy Finance can bridge the gap.
Be sure to compare interest rates, repayment terms and borrower protections from various lenders. Remember that private loans usually require a good credit score or a co-signer.
“One piece of advice is to figure out financing early on,” suggests Marjorie DeGraca, assistant dean and executive director for admissions at Berkeley Haas School of Business, in California.
“Examine your finances and understand what you may be able to use from savings and what you may need to borrow to offset the costs. Talk to fellow students about how they are covering the cost of the degree, too.”
