How to Pay for an International MBA

We all know that funding an MBA can be expensive, especially if you are adding in the cost of living abroad. Tuition alone can run as high as $70K per year, depending on your program. Factor in living expenses, study materials, and other miscellaneous expenditures, and it adds up to be a pricy enterprise.

It may feel daunting to look at the price tag of an international MBA and wonder how you are going to afford it, but is it impossible to find funding? No—thousands of students find ways to pay for business school abroad every year, and you can too. Here are a few options that can help make your dreams a financial reality.

Paying out of pocket for an international MBA

The easiest and most straightforward option for funding your international MBA is to pay for it yourself, assuming you’re among the lucky few who might have enough money stashed away in personal savings to cover all or part of the costs. Of course, this option won’t be available to most applicants, and the majority of business students will rely on multiple sources to fund their studies. In fact, 65% of Harvard MBA students receive some form of financial assistance.

One way you can self-fund an international MBA is by working during your studies. Instead of choosing a traditional full-time MBA program, many students opt for a part-time MBA instead. In 2013 – 2014, 45.6% of MBA students studied part-time. This allows you to work while putting yourself through school.

There are some things you need to consider if you go the part-time route, however: it usually entails a longer program, which can sometimes cost a little more. Part-time MBAs can also be a more stressful option, since they require you to juggle school with work and other outside obligations. Nonetheless, if you need a steady income during this time and would rather not borrow money, it is a good option.

Finding scholarships and grants

Whether it’s from the school you will attend or from an external source, scholarships and grants (or bursaries) are a great way to bankroll your business education. There are several different routes you can take when looking for international MBA financial assistance.

Research the scholarships offered by your target program. Business schools understand that earning an international MBA is a major financial commitment. Because they want to attract the best candidates, most programs make funding available to foreign students. HEC Paris, for instance, has over 115 funding opportunities, and the HEC Paris scholarship recipient receives on average €11K (about $12,300) in aid. Similarly, London Business School offers a number of scholarships and merit-based awards offered to all applicants, regardless of nationality. To be competitive for funding at most programs, however, you will want to apply early.

Another option is to see if any government grants are available. Some countries will offer financial assistance to students who meet certain criteria. The best way to find these is to check the government’s education website and see if they offer help for graduate student finances.

You should also apply to external sources of funding. Organizations such as Fulbright offer major funding contributions to help students study abroad. You will need to do some research in order to find these opportunities and to see if you qualify—but they are out there. Talk to your university about scholarship and grant options and make use of online search tools, such as Prospects or European Funding Guide. Sites like these allow you to search different funding opportunities that you might be eligible for.

Taking out student loans

Another way to fund your MBA is by applying for student loans. There are a few different types, so you’ll need to decide which one is best for you and your financial situation.

Government loans are a popular borrowing option because they tend to have lower interest rates and deferred repayment plans, reducing the financial burden once you graduate. Availability and options will vary from country to country, but you should have a look and see what is available to you. These student loans are usually need-based, but as with grants and scholarships, funding is limited. So, you will most likely need to supplement your loans with other payment options.

Private student loans, on the other hand, are usually borrowed through banks, corporations or foundations. In the UK, you can apply for career development loans through certain banks. According to the Financial Times, particular career development loans are available to students who are looking to stay in the UK or EU after their study. Private loans tend to be a bit more expensive as a funding option. Many business schools also have loan agreements with financial institutions that offer special terms for their students.

For international MBA students, securing private loans through banks can be difficult. Companies like Prodigy provide loans backed by business school alumni, as well as institutional and private investors. These peer-to-peer lending platforms bridge the gap and allow international MBA students to study at top business schools across the globe.

Keep in mind that with all student loans there will be a time where you’ll need to “pay the piper,” so make sure you’re prepared to follow through on repayment when you are done with your degree.

Attending business school on your company’s dime

Many employers offer financial assistance for their workers to earn MBAs with the promise of a job at the end of their degree program. At INSEAD, for instance, 12% of MBA students are company sponsored. This is a great way to not only fund your education, but also increase your value as an employee and potentially advance your career and salary. Of course, if you go this route, you should be certain it’s with a company for which you want to work long term.

An international MBA is within reach

In the end, if you research thoroughly and plan ahead, you will be able to organize your funds so you can get that degree and study abroad. It’s important to plan out how you will fund your entire international MBA program before you start. Planning ahead will decrease stress in the long run and help you avoid incurring massive student loan debt. Also, allow yourself plenty of time to arrange funding so that you aren’t scrambling for money while studying at your dream business school.

Interested in getting expert consultation and essential insight to ensure a winning business school application? Attend our free live online MBA Admissions Seminar.

The post How to Pay for an International MBA appeared first on Business School Insider.