Last Updated on Jun 27, 2022 by James W
Despite being one of the most sought-after degrees in the world, MBA degrees are expensive. So, how do you go about paying for them if you cannot afford them? In this article, we will discuss the importance of MBA degrees and how you can pay for your MBA degree. Let’s get into it.
Why are MBA Degrees Important
MBA degrees offer students many professional and personal benefits. Whichever industry you work in, an MBA degree can help you climb up the corporate ladder at any organization.
From a professional aspect, you can take on more responsibility, land upper-management roles, and get paid lucrative contracts.
From a personal aspect, it will improve your communication and leadership skills. These skills are vital for professional success at any organization.
Let’s look at the additional benefits that an MBA degree offers.
1. A Wealth of Job Opportunities
Earning an MBA opens up doors for you to a wealth of life-setting careers. You will have opportunities to work at some of the largest firms in the world in upper management positions.
2. Network
Your network is your net worth. Whether you complete your MBA degree online or on-campus, you will have access to the university’s alumni network. This network can help you land more job opportunities.
3. Job Security
Due to the recent pandemic, keeping a job has gotten more difficult than ever. However, the skills you gain from an MBA degree make you an invaluable member of any team. Even if you leave your organization, your qualifications and experience go with you. Thus, increasing your chance of getting a job quickly. And since there are many convenient online options available for a General Master of Business Administration Degree, you can easily manage them with your job.
With that said, let’s get into ways you can pay for your MBA degree.
How you can pay for your MBA Degree
As mentioned before, MBA degrees are expensive. Tuition costs at the top business schools can cost upwards of $100k. Even public business schools can cost over $50k, according to the US News.
We have compiled a list of nine ways you can pay for your MBA degree.
1. Fellowships
There are a few business schools that offer fellowship awards. Fellowship awards are like scholarships since it is grant money that you do not have to pay back.
Harvard Business School is one example. They offer their students need-based fellowships. According to their website, the average fellowship can get you $40k per year, or $80k total.
2. Graduate Scholarships
According to Gordan Berridge (associate director of admissions at the McCallum Graduate School of Business at Bentley University in Massachusetts), most business schools offer merit-based scholarships to deserving students.
If you are a student with excellent academic achievements or impressive GMAT or GRE scores, you can most likely get graduate scholarships. In addition, what you can contribute to the class also plays a factor.
3. Graduate Assistantships
You have the option of enrolling in business school and working as a graduate assistant to pay for your MBA degree. In this role, you will be working in tandem with the school’s faculty members or administrators. However, According to Berridge, “these positions are generally only offered to full-time graduate students with limited work experience and are awarded for merit.”
4. Industry-Specific Scholarships
If you are looking at external sources for scholarships, you should consider looking into industry-specific scholarships. For example, if you want to go into finance, you should research scholarship options available to you to pursue a finance degree.
5. Get Sponsored From Your Employer
There are a few organizations that sponsor their employees’ education. However, usually, they do want something in return. You might have to sign a contract that mandates that you will return to work for your employers after completing your degree.
Another option is to get tuition reimbursements from your employers. Dennis Yim, director of live online courses at Kaplan, advises that you to read the employee handbook or talk to human resource personell to find out if your company has a sponsorship or standard tuition assistance program in place. Most companies see the value of retaining employees skilled at their jobs, especially if they earn MBA degrees.
6. Student Loans From the Federal Government
You have two federal loan options available to you to pay for your education: The Federal Direct Unsubsidized Loan and the Grad PLUS Loan.
The Federal Direct Unsubsidized Loan can get you over $20k per year with a maximum limit of over $130k. The Grad PLUS covers your cost of attendance minus any other financial aid forms.
The interest rate for the Federal Direct Unsubsidized Loan is 5.28%. And the interest rate for the Grad PLUS loan is 6.28%. Lastly, if you want to apply for student loans, you can visit the FAFSA website and complete your Free Application for Federal Student Aid.
7. Private Student Loans
With lenders who offer private loans, you can get customized options for loans suiting your needs.
They will check your credit score, and some may provide loans with interest rates lower than federal student loans. In addition, some offer specialized loans for MBA degrees. Citizen Bank and CommonBond are two examples of institutions that provide specialized loans.
Lastly, private loans come at varied or fixed rates.
8. Special Grants From the Government
The federal government offers programs that can help you pay for your MBA degree abroad.
The Fulbright Business Grant is one such example. It allows you to pursue your MBA education in select countries like Spain, Taiwan, Finland, and Mexico. So, you can get your degree and travel to a beautiful country and enjoy its culture.
9. Talk to Financial Aid Officers at Business Schools you are interested in
A conversation with a financial aid officer to get financial aid can go a long way. It makes it more likely that you get substantial aid than if you were to just apply for it anonymously. Make sure you talk about why you are interested in pursuing an MBA and your interest in a particular business school. Additionally, be honest about your financial struggles. Lastly, talk to them over the phone, set up a video call, or meet them in person to have this conversation. You are more likely to get results this way than if you just sent an email.
Conclusion
MBA degrees are one of the most sought-after degrees in the world. Getting an MBA degree can set you up to get lucrative upper-management roles in industry-leading organizations. They are also very costly.
However, there are ways you can pay for an MBA like federal loans, private loans, talking to financial aid officers, graduate assistantships, or special grants from the federal government, among others.
