Financing your MBA

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Some tips that might be helpful:
How to Pay for Your MBA
Seeking higher education is anything but cheap, especially if you’re going for your MBA. But even though it’s going to cost a pretty penny depending on where you decide to go, think of it as an investment in yourself and in your future. Your future MBA can help you land a well-paying job at a Fortune 500 company or will inspire you to start your own business. If you’re thinking about going back to school to obtain your MBA, here are some tips on how to pay for it:
• Personal Resources - If you have a few years to plan and you’ve always known that you wanted to pursue your MBA, you might want to start putting money away now before you even apply. Many people pay for their MBA with their own money. Here’s a tip, think about opening a 529 in your name to help save. Not only will your investments grow tax free (as long as you use it to pay for your education) you’ll also potentially get a state tax deduction (make sure to check with your tax advisor)

• Loans - If you haven’t been saving all along and are ready to go to school this year, you’ll have to go with the old standby of loans. Educational loans are common with students seeking higher education since it allows them to borrow money needed for school and then pay it back later when they are making a much higher salary. There are federal and private loans that are available for students and depending on what you qualify for, each one has a different interest rate and payback program. You might even still be able to convince your parents to cosign your loan and get yourself a better interest rate.

• Scholarships - There is a lot of free money out there and you just have to apply for it for your chance at some of that money. And not all scholarships are from schools. Many charitable organizations still give money at the graduate level, especially if you are a under-represented minority in business school. All you have to do is research these scholarships to find out which ones you are eligible for.

• Military and Public Service Programs - There are a variety of military and public service programs out there that will help MBA students pay for school. U.S. Military veterans have several options, as well as those who work in the nonprofit/public sector.

• Alternatives – Many startups are entering into the MBA loan space. Places like Sofi and Upstart might be good options to check out. Also, your current or future employer might have a program to fund your education.

Remember, no matter how you pay for it, business school can be expensive. So before you go, make sure you figure out your expected return on this major investment. Do plenty of research to not only understand the tuition costs of the program, but also the cost of living of where your school is located. Also, take a look at the career reports from your target schools to try and figure out what your expected salary will be after graduation. Will it all be worth it? Only you can decide.

I want to know that if my any relative sponsor me for my usa study visa is there any problem.

Does anyone have a guidance for financing MBA for students from emerging markets? The borrowing options we have are rather limited compared to US residents or students from developed countries.

Hi, Prodigy Finance makes loans to international students.

Here are 6 ways in which you can finance your MBA abroad:

1. A loan from a Bank against existing collateral such as property:
Collateral-based education loans are loans in which the bank will take some form of a “guarantee”. If your parents have any kind of assets such as house, property or some long-term investments then you can use such things to get a loan from the bank. Alternatively, banks are also willing to provide loans against security such as Fixed Deposits (FD), Provident Funds (PF), and government bonds.

2. A non-collateral loan either from banks or other financial institutions
Non-collateral education loans are loans where you don’t have to offer to show any property or asset to avail of the loan. Most of the banks in India would offer non-collateral loans however the total amount they might be willing to provide is very low (close to 6 lakhs)

There are also financial institutions and loan providing companies such as Avanse, Prodigy Finance, Stilt, Gyandhan, mPower, and Credila who provide educational loans.

These companies provide a loan without any collateral is because they have sophisticated algorithms in place to predict your ability to pay back the loan based on certain factors like:

The ranking of the B-school you get into
The employability chances for your specific field
Your previous employment history

3. Education Loans for an MBA without collateral or co-signer
There are a good number of US B-schools offering student loans without a U.S. co-signer. This means that the B-school itself will stand as your guarantor.
Currently, the following US schools provide collateral-free loans to Indian students:
1. Harvard Business School
2. Stanford Global School Of Business
3. Wharton School of the University of Pennsylvania
4. Cornell University
5. Duke Fuqua School of Business
6. Haas School of Business
7. Yale School of Management (SOM)
8. The Darden School of Business
9. UCLA Anderson
10. Kenan-Flagler Business School


4. A loan from a US bank where you have a US citizen acting as your guarantor
You can consider this option if you have a close relative who is a US citizen and can act as a guarantor.

Yes! You are still liable to pay the debt after you graduate


5. Soft loans from friends and family & liquidating assets & investments
Self-finance means using your Savings, SIPS & FDs to ensure your loan amount is as low as possible.


6. Scholarships, and other financial aids offered by colleges.
This is generally considered as the best option because it doesn't involve spending a significant portion of your salary repaying a loan.

The reason MBA programs offer a scholarship because they want the smartest students in the class. And once you have gotten admission the only thing that is going to help them make an objective decision is the objective data-point they have in their hands: your GMAT score!

The scholarships are generally classified into:

Need-based scholarships – given after considering your financial background, including various assets and liabilities.
Merit-based scholarships – offered based on your GMAT score and profile.

However, colleges now provide scholarships based on both merit and need for current students.

If you would like to know more in-depth on each of these points then do check out our blog on Everything you need to Know about Financing MBA Abroad