Secure Funding for Your MBA
Once the initial elation of admission to your dream B-school subsides, it’s time to focus on the less fun yet critical task of sorting out the funding for your MBA degree. Besides budgeting for the obvious, like tuition and housing, you’ll need money for other things, too.
As SBC consultant Erika advises on this episode of the B-Schooled podcast, you’ll also want to take advantage of the unique opportunities that arise—things like international trips and industry treks. “There are tons of social activities during the two years you’ll spend earning your MBA, and that make it such a great bonding experience with your classmates,” Erika says.
Considering all that, you may wonder how you can finance your education without getting saddled with enormous debt. With rising tuition costs and limited funds available, it’s critical to become well-informed about all possible funding sources for business schools. In this comprehensive guide, we’re exploring various avenues, such as scholarships and company sponsorships, that can help ease the burden of financing your MBA degree.
You’ll learn how to decode admissions letters for potential financial aid offers and strategies for negotiating extra merit-based funding. We’ll also emphasize the importance of completing the FAFSA accurately to maximize your chances of securing federal loans. Finally, we’ll provide insights on evaluating loan options wisely, focusing on international students’ needs.
Don’t let limited funds hold you back from applying to business school. You can afford to attend a top MBA program through scholarship funding, company sponsorship, and/or loan options.
The process of finding, applying for, and sorting out MBA financial aid opportunities can be tedious and confusing. If you have already received admission to your dream MBA program and would like help with applying for financial aid as a US or international candidate, we are here to help with SBC’s Financial Aid Advisory service. Please email info@stacyblackman.com to learn more.
MBA Scholarships and Company Sponsorship
Worthy applicants often get scared off of applying to a top school, fearing the expense will be too great to bear. This is one of the most pervasive MBA admissions myths out there. But the good news is there are several options available to help you pay for your MBA.
Many top schools will also work with applicants to ensure cost is not a barrier to attending. For example, Harvard Business School is committed to boosting needs-based financial support for students. Roughly ten percent of students qualify for full-tuition scholarships.
Scholarship awards for our clients have risen by 10% each year over the past few years. About 20-25% of SBC clients receive scholarships ranging between $10,000 to full-ride offers valued at $200,000.
Besides scholarships and fellowships offered by the schools, several external opportunities are available, including merit-based scholarships and fellowships. A few well-known examples include:
- National Black MBA Association
- Military MBA Scholarship
- Reaching Out LGBT MBA Fellowship
- QS Leadership Scholarship
- The Consortium for Graduate Study in Management
- Forté MBA Fellowships
Another option to consider as funding for your MBA is company sponsorship. Many employers understand the worth of investing in their personnel’s professional growth. So, they might offer partial or full financial help for those seeking higher education. See if your employer has any programs that cover tuition costs or provide other educational benefits.
Decoding Your Admissions Letter
When you receive an admissions letter from a business school, read it carefully. It might contain crucial information about financial aid or merit-based awards. “Every round, I get emails from applicants who stop reading their admissions letter the moment they see the great news that they got in,” SBC consultant Erika says.
Look for mentions of merit-based scholarships, MBA fellowships, or other forms of aid in your letter. Different criteria, such as scholastic accomplishment, exam results, and vocation objectives, could decide the qualifications of certain awards.
“The schools use scholarships to help people who truly need it, but also to entice students to choose their program,” Erika adds. “So if you get an admissions letter and make sure you read it thoroughly.”
If you believe you deserve more scholarship money than initially offered, don’t hesitate to contact the admissions committee. You might be able to negotiate additional funding.
Listen to B-Schooled Podcast #44: Negotiating Merit Scholarships
FAFSA – A Key Step in Securing Financial Aid
The Free Application for Federal Student Aid (FAFSA) is a must-do for college and grad school students. It determines your eligibility for federal student loan programs, including grants, work-study opportunities, and low-interest loans.
Completing the FAFSA accurately maximizes your chances of securing financial aid. Errors can lead to delays or even disqualification from certain funding sources, so carefully examining your form before submission is critical. Gather all necessary documents beforehand, such as tax returns and bank statements. Submit the FAFSA as early as possible since some funds are awarded on a first-come-first-served basis.
Evaluating Loan Options
Don’t accept loans without considering factors like interest rates, repayment terms, and the impact on personal finances during the program. This is especially important for private loans. International students may face unique challenges but can still find suitable financing options.
Comparing Federal and Private Loan Options for MBA Students
Federal Loans: These are more favorable due to lower interest rates and flexible repayment plans. Examples include the Direct Unsubsidized Loan and the Grad PLUS Loan. Learn more about these programs from the Federal Student Aid website.
Private Loans: Offered by banks or other financial institutions, these loans often have higher interest rates and less repayment flexibility. Be sure to compare multiple lenders before deciding.
Tips for International MBA Students Financing Your MBA
MBA candidates outside the US can explore various funding sources, such as scholarships offered by their home country’s government or organizations and external MBA scholarships provided by business schools.
Additionally, some private lenders offer specialized loan products tailored to international students’ needs. Research your options thoroughly before committing. For example, the Prodigy Finance platform offers loans to international students without requiring a co-signer or collateral.
You are Worth It
During that episode of B-Schooled, SBC consultant Erika recounted a time when Berkshire Hathaway chairman and CEO Warren Buffett spoke to her class when she was a student at Harvard Business School. “He was just so down to earth and cool,” she recalls. “And he said, ‘the more you learn, the more you earn’.”
While all this financial stuff seems overwhelming, remember that an MBA is a long-term investment in yourself, Erika says. It will continue boosting your career potential after your first job after graduation. “Despite all the loans I took on, and I’m still paying off, I would do it again all over again exactly as I did.”
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Stacy Blackman Consulting offers multiple services to meet your MBA application needs, from our All-In Partnership to hourly help reviewing your MBA essays, resume, and more. Contact us today for a free 15-minute advising session to talk strategy with a Principal SBC consultant!
Here’s a snapshot of the caliber of expertise on our SBC team.
Ashley
Ashley is a former MBA Admissions Board Member for Harvard Business School (HBS), where she interviewed and evaluated thousands of business school applicants for over a six year tenure. Ashley holds an MBA from HBS. During her HBS years, Ashley was the Sports Editor for the Harbus and a member of the B-School Blades Ice Hockey Team. After HBS, she worked in Marketing at the Gillette Company on Male and Female shaving ...
×Pauline
A former associate director of admissions at Harvard Business School, Pauline served on the HBS MBA Admissions Board full-time for four years. She evaluated and interviewed HBS applicants, both on-campus and globally. Pauline's career has included sales and marketing management roles with Coca-Cola, Gillette, Procter & Gamble, and IBM. For over 10 years, Pauline has expertly guided MBA applicants, and her clients h ...
×Laura
Laura comes from the MBA Admissions Board at Harvard Business School (HBS) and is an HBS MBA alumnus. In her HBS Admissions role, she evaluated and interviewed hundreds of business school candidates, including internationals, women, military and other applicant pools, for five years. Prior to her time as a student at HBS, Laura began her career in advertising and marketing in Chicago at Leo Burnett where she worked on th ...
×Andrea
Andrea served as the Associate Director of MBA Admissions at Harvard Business School (HBS) for over five years. In this role, she provided strategic direction for student yield-management activities and also served as a full member of the admissions committee. In 2007, Andrea launched the new 2+2 Program at Harvard Business School – a program targeted at college junior applicants to Harvard Business School. Andrea has also served as a Career Coach for Harvard Business School for both cu ...
×Jennifer
Jennifer served as Admissions Officer at the Stanford (GSB) for five years. She holds an MBA from Stanford (GSB) and a B.S. in Chemical Engineering from University of Illinois Urbana-Champaign. Jennifer has over 15 years experience in guiding applicants through the increasingly competitive admissions process into top MBA programs. Having read thousands and thousands of essays and applications while at Stanford (GSB) Admiss ...
×Erin K.
Erin served in key roles in MBA Admissions--as Director at Haas School of Business at UC Berkeley and Assistant Director at Stanford's Graduate School of Business (GSB). Erin served on the admissions committee at each school and has read thousands of applications in her career. At Haas, she served for seven years in roles that encompassed evaluation, outreach, and diversity and inclusion. During her tenure in Admissions at GSB, she was responsible for candidate evaluation, applicant outreach, ...
×Susie
Susie comes from the Admissions Office of the Stanford Graduate School of Business where she reviewed and evaluated hundreds of prospective students’ applications. She holds an MBA from Stanford’s GSB and a BA from Stanford in Economics. Prior to advising MBA applicants, Susie held a variety of roles over a 15-year period in capital markets, finance, and real estate, including as partner in one of the nation’s most innovative finance and real estate investment organizations. In that r ...
×Dione
Dione holds an MBA degree from Stanford Business School (GSB) and a BA degree from Stanford University, where she double majored in Economics and Communication with concentrations in journalism and sociology. Dione has served as an Admissions reader and member of the Minority Admissions Advisory Committee at Stanford. Dione is an accomplished and respected advocate and thought leader on education and diversity. She is ...
×Anthony
Anthony served as the Associate Director of MBA Admissions at the Wharton School at the University of Pennsylvania, where he dedicated over 10 years of expertise. During his time as a Wharton Admissions Officer, he read and reviewed thousands of applications and helped bring in a class of 800+ students a year. Anthony has traveled both domestically and internationally to recruit a ...
×Meghan
Meghan served as the Associate Director of Admissions and Marketing at the Wharton MBA’s Lauder Institute, a joint degree program combining the Wharton MBA with an MA in International Studies. In her role on the Wharton MBA admissions committee, Meghan advised domestic and international applicants; conducted interviews and information sessions domestically and overseas in Asia, Central and South America, and Europe; and evaluated applicants for admission to the program. Meghan also managed ...
×Amy
Amy comes from the Wharton School of the University of Pennsylvania where she was Associate Director. Amy devoted 12 years at the Wharton School, working closely with MBA students and supporting the admissions team. During her tenure at Wharton, Amy served as a trusted adviser to prospective applicants as well as admitted and matriculated students. She conducted admissions chats with applicants early in the admissions ...
×Ally
Ally brings six years of admissions experience to the SBC team, most recently as an Assistant Director of Admission for the full-time MBA program at Columbia Business School (CBS). During her time at Columbia, Ally was responsible for reviewing applications, planning recruitment events, and interviewing candidates for both the full-time MBA program and the Executive MBA program. She traveled both internationally and dome ...
×Emma
Emma comes from the MBA Admissions Office at Columbia Business School (CBS), where she was Associate Director. Emma conducted dozens of interviews each cycle for the MBA and EMBA programs, as well as coordinating the alumni ambassador interview program. She read and evaluated hundreds of applications each cycle, delivered information sessions to audiences across the globe, and advised countless waitlisted applicants. ×
Dana
Dana served as Assistant Director of Admissions at Columbia Business School for the Full-Time MBA program and has over 10 years of experience working in higher education. Known as a scrupulous file reader, Dana reviewed countless applications and assisted in rendering final decisions for the Admissions Committee at CBS. While leading information sessions at Columbia and on the road, Dana met and advised myriad applicants� ...
×Holly
Holly worked as a member of the NYU Stern MBA Admissions team for seven years and holds an MBA from NYU Stern. In her tenure as Director of NYU MBA Admissions, Holly worked closely with admissions teams from Columbia, Michigan Ross, UVA Darden, Cornell Johnson, Berkeley Haas, Yale SOM, and Duke Fuqua on recruiting events domestically and internationally. On the NYU Stern admissions committee, Holly conducted interviews, planned and hosted events, and trained staff on reading and interviewi ...
×Mark
Mark has been working in global higher education for nearly ten years, focusing on MBA Admissions at European programs including Oxford Said Business School and London Business School (LBS). At the University of Oxford’s Said Business School, Mark was the Associate Director of MBA Recruitment, leading the recruitment of all applicants to the Oxford MBA and 1+1 MBA programs. In this role, Mark advised countless MBA applic ...
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