MBA Rendezvous
Latest News
Jaipuria Institute of Management Excellent placement package with highest of 16.5 lacs per anum Apply Now Read Top 10 RCs Here ! GITAM School of International Business Admissions Open PGP 2017-2019 PGDBA 2017 - 2018 Apply Online Here Read Top Classic Essays ! SDMIMD Admissions open for PGDM Programme 2017 - 2019 GL Bajaj Institute of Management and Research - PGDM Admissions 2017 Apply Now LM Thapar School Of Management - GD and PI of candidates shortlisted on 1st April 2017, Delhi Read Latest Group Discussion Topics IFIM B School - Apply for Two year full-time PGDM program Apply at IBS Business School Nine Outstanding Campuses, One Amazing College SSIM - Apply for PGDM Admissions 2017 CII School of Logistics - Apply for MBA in Supply Chain Management Vels University - Admissions Open 2017-19 for MBA Programmes Amrut Mody School of Management - Last Date to Apply - 14th April 2017 Alliance University - Last Day to Apply 31st March 2017. Apply Now ! Jaipuria Institute of Management Excellent placement package with highest of 16.5 lacs per anum Apply Now Read Top 10 RCs Here ! GITAM School of International Business Admissions Open PGP 2017-2019 PGDBA 2017 - 2018 Apply Online Here Read Top Classic Essays ! SDMIMD Admissions open for PGDM Programme 2017 - 2019 GL Bajaj Institute of Management and Research - PGDM Admissions 2017 Apply Now LM Thapar School Of Management - GD and PI of candidates shortlisted on 1st April 2017, Delhi Read Latest Group Discussion Topics IFIM B School - Apply for Two year full-time PGDM program Apply at IBS Business School Nine Outstanding Campuses, One Amazing College SSIM - Apply for PGDM Admissions 2017 CII School of Logistics - Apply for MBA in Supply Chain Management Vels University - Admissions Open 2017-19 for MBA Programmes Amrut Mody School of Management - Last Date to Apply - 14th April 2017 Alliance University - Last Day to Apply 31st March 2017. Apply Now !

"10 Financial Aid Tips for MBAs"

Financial aid is one of the major factors that can affect your choice of business school. MBA financing is so important that you need to consider it before you even think about applying to business school.
10 Financial Aid Tips for MBAs

MBA Entrance Exams Updates on Whatsapp & Email!

MBA Updates
Home » MORE » QS World MBA Tour » 10 Financial Aid Tips for MBAs

Published : Thursday, 22 September, 2016 1:09 PM

10 Financial Aid Tips for MBAs

Financial aid is one of the major factors that can affect your choice of business school. MBA financing is so important that you need to consider it before you even think about applying to business school. In this article, financial aid directors from UC Berkeley’s Haas School of Business and Columbia Business School offer their advice for MBA applicants.

1. Look at your individual circumstances

 While it’s tempting to Google ‘best MBA loan’ and hope for a quick fix, there is no one-size-fits-all solution when it comes to financing your MBA.  Each student is different, pointsout Sarah Lopez, director of financial aid at Berkeley-Haas: “Not every student will come in with the same resources. Not every student is comfortable taking on debt at the same levels.”

In addition, each student coming into business school has a different set of circumstances and a different financial situation, so the best financing option for one person won’t necessarily be the best for another. Even on an individual basis, there may not be one perfect solution, since deciding how to pay for your MBA isn’t as cut and dry as knowing when to start saving for retirement. There are a lot of different factors that affect your MBA financing choices, including your intended post-MBA career, living costs, your credit situation and the amount of money you have saved. That’s why you should run through all the different potential MBA financing scenarios and make decisions based on your individual situation.

If you have problems finding the best plan to fit your circumstances, the good news is that you’re not alone. According to Lopez, the financial aid office can help “students craft a plan so they understand the specific sources of aid as well as their individual circumstances.”

2. Save your money

“‘Save, save, save,’ would be our best advice,” states Marilena Botoulas, assistant dean of financial aid at Columbia Business School. Specifically, Botoulas advises that “students come into school with a level of savings that will allow them to achieve the personal, community and interpersonal goals they have set for themselves."

Attending a top MBA program is an expensive endeavor, and having money saved up beforehand helps with living costs and reduces your reliance on loans. Students also have to consider potential costs beyond tuition and cost of living. Having money saved can help you prepare for the different scenarios that could occur during your MBA program. For example, familial obligations may require you to travel home more often than you expected, or you may need money to cover expenses associated with recruiting or spring break trips.

3. Look for MBA scholarships and “free money” before loans

Before applying for MBA loans, “all MBA students are encouraged first to look for any grant, scholarship or fellowship assistance in order to keep their loan borrowing at a minimum while they are enrolled,” states Botoulas. Most business schools offer need and merit-based MBA scholarships.  Business schools also usually keep lists of external scholarships and programs which can help students pay for their MBA.
It is well worth the extra work to find MBA scholarships and grants, because, as Lopez states, “it’s free money, essentially, and it’s better than taking out loans.”

4. Ask your family and company for help

As with MBA scholarships and grants, receiving money from your family or company can help lower your dependence on MBA loans. That’s why you should consider asking your family and/or company for help towards paying for your MBA. Whether or not asking for money is a good idea, however, depends on your own situation, particularly when it comes to sponsorships. Lopez states that sponsorships are “a good option when someone knows that they’ll be going back to that company and they’re comfortable making that decision.”

5. Review your living expenses

In addition to paying for your program, you also need to have money for a place to live, food to eat, plus other living-related expenses that come up during your MBA. In fact, the cost of living is the second-highest cost associated with attending an MBA program. While your MBA program will provide you with a suggested budget which includes tuition, fees and living expenses, those factored-in living expenses are moderate. That’s why, according to Botoulas, “anything that could be considered a lifestyle choice should be reviewed carefully.”

6. Estimate your post-MBA salary

“Before committing to business school, students should research the kind of salaries they can expect to receive, post-MBA, in their chosen industry and position,” states Botoulas. Estimating your post-MBA salary is the first step towards being able to evaluate you capability to pay off a loan, as well as the maximum amount you should borrow in the first place.

7. Go to the financial aid office

“We recommend that students contact the financial aid department as soon as they’re admitted,” states Lopez. After that, “any point a student has confusion about the process is a good time.”

There’s a common misconception that financial aid offices are only open when classes are in session when, in fact, most offices are open year-round. Indeed, Lopez says that summer is a particularly busy time for Berkeley-Haas’ financial aid department.

8. Know what factors to look at when evaluating MBA loans

According to Botoulas, students should look at the following factors in order to evaluate whether or not an MBA loan is right for them: “Origination fees, interest rates and whether they are fixed or variable, the term (length) of the loan, grace period but also whether a loan product offers repayment flexibility for economic hardship or unemployment, income-based repayment, loan forgiveness for death or total disability as well as for working in a nonprofit or government agency.” Another major factor to consider is the maximum loan amount.

9. Don’t wait and apply for your MBA in the last round

According to Lopez, it’s “really critical” that students apply early instead of waiting for the final round. Individual business schools only have a certain amount of scholarship money available each year and some fellowships are likely to be awarded very early in the admissions cycle. Even if you are a superstar student, applying late could mean that you will miss out on a scholarship you might have been able to get had you applied earlier.

10. International students should look for financial aid options in their home country first

When it comes to MBA financing for international students, Lopez advises students to look to MBA scholarship and grant options in their own country before looking at options within their intended host country. International students may be competing with domestic students for scholarships and fellowships, so it’s important that they know the full array of options available to them.

In the US, for example, international students can’t apply for a federal MBA loan, which puts them at a disadvantage. At the same time, however, international students shouldn’t rule out private MBA loans entirely, since some business schools (such as Columbia and Berkeley-Haas) will act as a co-signer. Some business schools are more hands on about helping international students find financing than others, so it’s important to find out what services your school provides.

QS offer exclusive scholarships worth US $1.7 Million to all attendees of the QS World MBA Tour. The tour will be in India from 27th of November to the 8th of December in a city near you. Attend the tour to meet with top business schools like HEC-Paris, IE, Johns Hopkins, Nanyang and many. Find out more information about the events happening in India on www.topmba.com/rendezvous and register now to secure your place.  

Written by Nicole Wilson

Source: Topmba.com 

For more information, or a press pass on the day, contact :

Archana Menon | archana@qs.com| Tel: +44 20 7284 7278

Notes for Editors

About Nicole Wilson

Nicole is the SEO manager of TopMBA.com, as well as a contributing author. She holds a BA in history and sociology, and a master's in library science. Aside from her work for QS, Nicole is a long-time contributing editor and administrator for WikiHow.

About QS

QS is the world's leading network for top careers and education. It links graduate, MBA and executive communities around the world, with recruiters and education providers, through websites, publications, selection services and events.

The company was founded by Wharton MBA, Nunzio Quacquarelli, in 1990. Fellow director Matt Symonds and the Paris team joined in 1994. Today QS operates globally from offices in Beijing, London, Paris, Johannesburg, Singapore, Sydney, Tokyo and Washington DC.

QS’ mission is to provide a lifetime of educational and career information to high-achievers.

It achieves this through the platforms of: publications, web services, events and software; all of which aim to support candidates at each stage of their career path, helping them reach leadership positions. 

Our communities include : QS TopUniversities.com,  QS TopMBA.com and QS Global Workplace.com.

The QS team of over 140 individuals from the four corners of the world represent the experience and goals of the achievers we aim to assist. They include internationally recognized experts in the higher and business education arena.

QS operates globally from offices in London, Paris, Stuttgart, Singapore, Beijing, Shanghai, Sydney, Washington DC, Boston, and Johannesburg.

QS World MBA Tour

The QS World MBA Tour is the world’s largest series of recruitment and information fairs for business school applicants. In 2015, over 70,000 MBA candidates registered to visit 80 cities in 54 countries. The QS World MBA Tour offers a unique opportunity to meet admissions officers of the world's most influential business schools at venues around the world. Now in its 21st year, the Tour will consist of over 200 events across 55 countries over five continents during 2016.

Stay informed, Stay ahead and stay inspired with MBA Rendezvous

World's top business schools to tour India
World's top business schools to tour India
The global MBA market continues to thrive, and the world's employers are expanding hiring practices accordingly & global careers advice experts QS Quacquarelli Symonds will give students across India a unique chance to meet leading institutions as part of the QS World MBA Tour.
What it takes to Rise to the Top in the Consulting Industry
What it takes to Rise to the Top in the Consulting Industry
Newly released data from almost half a million professional networking profiles shows that, over the course of twenty years (from 1990 to 2010, based on this list), only 14% reach this milestone of career success: becoming a VP, CXO, or partner of a firm with over 200 employees.
7 Tips for a Winning MBA Scholarship Application
7 Tips for a Winning MBA Scholarship Application
The QS World MBA Tour will be in India from 27th November to 8th December in a city near you, giving you an opportunity to meet with top business schools from around the world.
QS World University Rankings 2016/17
QS World University Rankings 2016/17
The QS World University Rankings, compiled by global higher education think tank QS Quacquarelli Symonds, has today confirmed Massachusetts Institute of Technology as the world's best university for the fifth consecutive year.
Interview with Paras Fatnani
Interview with Paras Fatnani
QS World MBA Tour - Study in the US events are a platform where aspiring MBA Candidates from all across India have the opportunity to meet face-to-face with 18 top-ranked business schools from the US.
QS World MBA Tour
QS World MBA Tour
The QS World MBA Tour, the world's leading series of career and education events for aspiring MBAs, brings top American Schools to India from July 30 -August 6, building on the great success of recent events.

View Important Alerts

alert icon

MBA Entrance Exams Updates on Whatsapp & Email !

Get Updates Now !
gd-pi icon

Top 20 USPs/ Features of Alliance University

Check them NOW !
gd-pi icon

Vels University

Admissions Open 2017-19 for MBA Programmes Apply Now
Top