When it comes to finding the appropriate financing for your degree, you will typically have three options before you: you can pay directly out of pocket; you can finance through loans or grants; or you can be awarded a scholarship from a university of external organisation recognising particular achievements or demographics. Whichever option you choose, make sure to do your research before applying and going forward with the process. You don’t want to accidentally commit yourself to any financial obligations that you don’t know how to handle once the program has ended! Here are some tips on how to fund a Masters of Business Administration so that you can pay attention to what really matters—your studies and your career path!
Self-Funding Your MBA
For some people, funding their MBA may be as simple as taking out student loans. But if you are like many who want to go back for their advanced degree but don’t want to rack up even more debt, then you will be glad to know that there are alternative ways you can receive more favourable MBA funding. One way is through self-funding, which means that instead of asking other people (like family and friends) for money, you use your own money—or cash flow—to pay for it. The pros and cons of self-funding an MBA will depend on several factors including your finances, goals, and overall career trajectory in general. It can be a large outlay from the offset and leave you without a lot of reserves to cover you in other interests or in an emergency. If you have the money to spare, however, you won’t incur any interest or hassle in making repayments, possibly saving you more in the long run.
Getting Student Loans for Your MBA
Applying for a student loan can be an initially be an overwhelming process when looking at funding options. The first thing you need to do is figure out how much money you need and whether or not you’re eligible for loans, grants, scholarships or any other form of financial aid. Not all masters programs cost $80,000—with some ranging as low as $20,000—but it’s helpful to know if you have enough room in your budget before you apply. A general rule of thumb: Private loans typically have lower interest rates than federal loans but come with fewer repayment options and benefits. If you want to have more control over your debt, however, this may your best options in funding your MBA.
A range of scholarships are available to award people with strengths in the realms of academics, sport, music and beyond, so be sure to look around for the best options for you. As you can imagine, most of these scholarships are awarded usually on a merit-based assessment, but some have additional requirements and components to consider, such as GPA, minority status, or major. The best places to start are your university website and student scholarship databases. Once you have done your research, it’s time to apply – and don’t just limit yourself to one; everything you are eligible for, make an application! Financing for graduate school can be competitive—and sometimes even more so than for undergraduate programs—so don’t let yourself fall behind by overlooking these resources early on in your search.