![\"Paying](\"https:\/\/gmatclub.com\/blog\/wp-content\/uploads\/2017\/10\/Paying-for-Your-MBA-as-an-International-Student.jpg\")
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If an international MBA has crossed your mind, you\u2019ve probably taken a minute to look at the price tag of a programme or two.<\/p>\n
Now that you\u2019ve picked yourself up off the floor and still can\u2019t manage to shake your desire to pursue this amazing experience, you\u2019ve got the difficult task of figuring out how you\u2019ll fund your education.<\/p>\n
It\u2019s hardly the only challenge you\u2019ll face as an international grad student. There are also study visas and accommodation to secure \u2013 and that\u2019s before considering how much effort goes into every application and the dreaded GMAT exam<\/a>.<\/p>\n But, you won\u2019t be able to get your visa without having your finances in order first<\/a>. So it\u2019s not even worth worrying about accommodation yet. You can (and perhaps should) worry a little about GMAT preparation, but MBA financing also takes some time, and you can\u2019t start on it too soon.<\/p>\n How do international MBAs finance their education?<\/strong><\/p>\n There\u2019s no simple answer to this question. Every student pulls together a unique financing package, and yours is going to be inherently different from everyone else\u2019s.<\/p>\n Generally speaking, however, MBAs pay for their education using the same basic sources:<\/p>\n \u2022 Personal (and\/or family) savings<\/p>\n \u2022 Scholarships and bursaries<\/p>\n \u2022 Personal sources of unsecured credit (such as credit cards)<\/p>\n \u2022 Family or personal loans<\/p>\n \u2022 Private or government loans<\/p>\n While it is possible for many international grad students to work in their host countries, the demands of an MBA programme are intense, and it\u2019s not always possible to manage working and studying at the same time. Most MBA students can\u2019t factor simultaneous employment into their budget, and it\u2019s not advisable if you can avoid it.<\/p>\n Instead, it\u2019s best to focus on funds you can obtain before leaving for your studies.<\/p>\n And the reality is that you\u2019re probably going to look at all of the potential funding sources and make use of a combination of options.<\/p>\n Which sources should you consider first?<\/strong><\/p>\n Scholarships and bursaries should always be your first port of call<\/a>. This is free money for your education; you need never repay it (unless you do something that causes the provider to rescind the package).<\/p>\n Many universities, especially American ones, place you within their financial aid system as soon as you\u2019ve accepted a seat at their institution. Some provide you with an aid package along with your acceptance letter (perhaps helping you to choose their institution over another). But there are plenty of other options, and it\u2019s worth it to investigate as many as you can.<\/p>\n Then, it\u2019s time to consider your personal savings<\/a>, and depending on the cultural norms in your country - your family\u2019s financial assets. But, you shouldn\u2019t start trying to squeeze for the last tiny coin from your family \u2013 it\u2019s really only a matter of noting what\u2019s available if nothing else comes through. After all, not everyone has a small personal fortune that they\u2019re willing to dole out.<\/p>\n Family loans, on the other hand, are becoming a norm in many parts of the world. Whether it\u2019s a small amount or a large amount, it\u2019s critical to have everything in writing. Not only are their legal frameworks for personal loans in most countries, but you\u2019ll need to demonstrate how you received whatever money you have to receive a study visa.<\/p>\n If you live in a country where the government offers or subsidizes study loans, you will also want to investigate these before you approach private lenders; usually, their interest rates and repayment terms are favourable.<\/p>\n And then there are private study loans<\/strong><\/p>\n As an international student, there are three different private loan sources that you should investigate<\/a>:<\/p>\n \u2022 Private local banks Your first stop is likely to be a private bank in your home country. Logic would tell you that these institutions are best placed to provide you with a loan \u2013 they have access to your financial history and your credit records. But, you may want to brace yourself for a bumpy ride.<\/p>\n Local banks, especially in emerging economies and developing countries, often aren\u2019t in a position to lend to international students. They\u2019re unable to price the risk on those that are leaving the country as soon as they receive their loan \u2013 and many can\u2019t fathom that an education could cost that much (remember how you first felt?).<\/p>\n There are other challenges that you may need to tackle as well, for example, loan disbursement in local currencies which then require you to pay the transfer and exchange fees. And, depending on the level of bureaucracy, it could take months to finalize your loan and secure the proof needed for your visa application.<\/p>\n Believe it or not, you may have access to loans in your host country. But, don\u2019t start jumping up and down yet, these aren\u2019t always as easy or as straightforward as you may like.<\/p>\n Banks in your host country are almost always going to require a local cosigner with strong financial standing. That\u2019s perfect if you have family in your host country that are willing to back you up \u2013 or if your university is willing to act as a cosigner for you (though, you shouldn\u2019t expect that as a norm, only as a bonus).<\/p>\n It\u2019s at this point that many accepted students throw their hands up in frustration. Some loans are unavailable, others don\u2019t cover enough of the expenses, and then there are those with prohibitively high interest rates.<\/p>\n So, what\u2019s this about Prodigy Finance?<\/strong><\/p>\n Prodigy Finance is a lending platform that provides postgraduate loans to international students from 150 countries attending the world\u2019s top universities, who would otherwise have no alternative access to finance. The loans are collectively funded by a community of alumni, institutional investors and qualified private investors who receive both a financial and social return. Since 2007, Prodigy Finance has provided more than US$323 million in funding to over 7,100 students with exceptionally strong repayment.<\/p>\n Take a moment to learn more about Prodigy Finance loans and which schools are currently supported<\/a>. After all, funding shouldn\u2019t be a barrier to education \u2013 nor should it keep you up at night; your GMAT prep will do that all by itself.<\/p>\n [xyz-ihs snippet=\"MBA-WBR-6-Steps-to-Understanding-International-Student-Loans\"]<\/p>\n Related Resources:<\/strong><\/p>\n \u2022 How to Fund Your MBA Abroad<\/a>, a free webinar This article<\/a>\u00a0originally appeared on\u00a0<\/i>blog.accepted.com<\/a>.<\/i><\/p>\n Applying to a top b-school? The talented folks at Accepted have helped hundreds of applicants get accepted to their dream programs. Whether you are figuring out where to apply, writing your application essays, or prepping for your interviews, we are just a call (or click) away.<\/p>\n
\n\u2022 Private banks in your host country
\n\u2022 Private loans from international providers, like Prodigy Finance<\/p>\n![\"\"](\"https:\/\/blog.accepted.com\/wp-content\/uploads\/2017\/04\/Prodigy-Finance-Katie.jpg\")
<\/a>Katie studied human rights and graduated with a Bachelor\u2019s degree from Kent State University while working with NGOs in Geneva, Switzerland. Although she has since settled in South Africa, with work towards a Masters in Forced Migration through the University of the Witswatersrand, nothing stops her from being a proud American. Although writing is often solitary work, Katie has been part of the Prodigy Finance Team<\/a> as the Content Specialist since 2013. She also loves rugby, sloppy Mexican food and Tudor history which means you could find her in any section of a bookstore.<\/em><\/span><\/p>\n
\n\u2022 MBA Scholarships: How do I Apply and What Should I Emphasize?<\/a>
\n\u2022 Having Trouble Securing a Loan for Your International MBA?<\/a><\/p>\n