The post-MBA career advancements like secured job, high remuneration, distinct position in the senior management hierarchy and lucrative perks among many others are like icing the cake of a static career growth. In the competitive corporate world, the demand of MBA professionals always remain high and the students also consider it as a gateway to career fortune. On the other end the inevitable fact is an MBA cost like a king’s ransom. The major sources of financing the degree course are personal savings, corporate sponsorship, scholarships, bank loans and many others.
Pursuing an MBA from the renowned universities like HBS, Stanford B-school etc; is an avalanche of cost and students try to find out all the possible source of funds to aid them in their journey. In this context, Graduate Management Admission Council (GMAC) generated a survey report based on ways to finance the MBA in 2016. The body conducted the survey in the year 2015, the conclusions drawn are summarised below:
(i) 26% of the aspirants considered combination of grants, fellowships, and scholarships
(ii) 20% of the students chosen loans
(iii) 19% of the aspirants preferred parental support, 12% possess their personal savings and 11% said personal income
(iv) 8% showed the faith on employer sponsorship/reimbursement is followed by the ones relying on spouse/partner earnings and other form of funding (2% each).
After qualifying the available forms of MBA entrance aptitude tests like, GMAT, GRE & CAT (in India), the next task is to opt the best suitable form of finance sources to sponsor the MBA course. Here are some suggested ways to sustain MBA cost, these are:
Self Funding – Financing an MBA cost from one’s pocket is like setting the thames on fire. Indeed, the fee requires a sack full of money but some people may able to offer it either by their savings or with the help of family support. Saving penny to self-finance for MBA is an uphill task but the bearer need not to tear his/her hair over the repayment of education loan including the interest levied in it. Abreast of other advantages of self-finance, it doesn’t demand any sort of legal constraints. It may take time to fill empty bank accounts, however, whatever amount you’ll put inside the bank account with a splendid job all will belong to you.
Bank Loans – Acquiring education loans from the banks is a blessing in disguise. In India, the average interest rate is 15% and the banks usually retain possession of collateral property or assets as a guarantee. However, in the countries like US or any other, processing of educational bank loans are much easier for the students who have a consigner. In USA, the average interest rate is 7- 8% and you need a cosigner who is a green card holder as a guarantee. Within 3-4 years you can easily repay off the complete amount.
Scholarships – On the top of all, scholarships are like icing the MBA cake. Many B-schools offer merit-based scholarships based on First-come, first-serve scheme. Hence it is advisable to apply for a scholarship as early as possible. There are several types of scholarship available. Few of them are listed below –
- Need based – This type of scholarship needs evidence of financial need for assessment.
- Merit-based – Most universities offer merit-based scholarships. This type of scholarship requires excellent academic performance, leadership and professional experience
- Company sponsored – This type of scholarship is provided to students by a particular company with their terms and conditions. It might be in the form of bond or any other form.
- Minority-based – Minority-based scholarships are provided to a specific group or a certain set of public like – women or students from developing countries.
- Excellent academics – Scholarships are provided to the students with good academic background. In some cases, performance of students is also analyzed.
- University funding – Once a student is enrolled in university, they are automatically considered for scholarships, very rarely one has to apply for scholarships. These can be merit based or need based and sometimes minority based.
Teaching or Research Assistance (TA / RA)– At the time of pursuing MBA, several students opt to become the teaching or research associate under guidance of their respective professors or lecturers. In return of their assistantship, they get stipend which could be yet another source of bearing the MBA expenses.
Internship Stipend – On an average, the duration of the MBA program is 15-18 months varies from colleges to colleges or programs to programs. Out of those mentioned months, 6 months internship is compulsory. During the internship, the student turn intern gets handsome stipend from the company. This stipend amount could be a source for repaying the acquired education loan amount.
Company’s Bond – There are few companies, which takes care of your loan once get placed in those companies after your MBA. In return, the loan seeker has to ink down a bond with the employer, declaring that the loan seeker will provide his/her continuous service to the company.
At the last, it is your decision to select the best option available for the sponsorship of MBA. You can take help of our admission counsellor by just giving a missed call at 08033172797, or you can drop an SMS. You can write to us at firstname.lastname@example.org.