Completing an MBA program is arguably among the best decisions a young business professional can make in life, as it not only boosts your career prospects, but also helps you see the world from a totally new perspective.
However, just after candidates pass the admission process, a new headache begins for many of them: how to get the necessary resources to finance the program.
We understand that it’s no small issue. The cost of tuition of the MBA programs ranked among the world’s best costs around between €65,000 and €105,000. Then figure in added living costs of whichever city you’re studying in while foregoing a full-time source of income.
When planning this process, students often turn to various funding sources. And business schools offer them an array alternatives to cover the costs of the program in the simplest possible way.
How to finance an MBA
Financing your MBA doesn’t have to be that difficult. Here are your best options:
1. Scholarships
Aware of the need to attract the best talent, almost all business schools offer a wide range of MBA scholarships that in some cases cover more than half of tuition.
There are grants for students with outstanding academic records, dependent family members and those who come from developing countries as well as grants related to entrepreneurship or social impact projects, help for candidates with economic limitations or for those in specific sectors, and also scholarships earmarked for female students, among others.
2. Loans
The specific credit lines for MBA students are another of the financing channels that you can use. Schools usually establish agreements with financial institutions that include options that are adaptable to the individual situation of each student, thus helping everyone to become the senior managers they aspire to be.
There are also agreements between schools and the governments of certain countries that offer public loans for financing the problem. Other candidates ause personal loans to finance their studies.
3. Company sponsorship
Some companies sponsor students for part or all of their MBA program and its costs, including at IESE, for those employees who commit to return to the company after graduating. Others offer reimbursement of tuition costs as part of their salary structure. These practices are more common in sectors such as consulting or financial services. In other industries, the candidate will have to go the extra mile to get sponsorship.
4. Personal resources
But the majority of candidates cover the costs of an MBA with their own savings or with the help of family members and friends. Others use crowdfunding networks to raise the capital they lack.
The cost of tuition for the world’s top-ranked MBA programs run between €65,000 and €105,000.
