{"id":14401,"date":"2024-03-18T23:24:26","date_gmt":"2024-03-18T17:54:26","guid":{"rendered":"https:\/\/lalrp.org\/?p=14401"},"modified":"2024-03-18T23:24:26","modified_gmt":"2024-03-18T17:54:26","slug":"ways-to-find-money-to-pay-for-an-mba","status":"publish","type":"post","link":"https:\/\/lalrp.org\/online-colleges\/ways-to-find-money-to-pay-for-an-mba\/","title":{"rendered":"Ways to Find Money to Pay for an MBA"},"content":{"rendered":"
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MBA degrees can cost more than $60,000 a year.<\/strong><\/p>\n

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While earning an\u00a0MBA degree<\/a>\u00a0can advance your career path and future earnings, many people find it difficult to shoulder the upfront cost. While some programs offer options that are\u00a0more affordable\u00a0and cost less than $10,000 for the entire program, tuition and fees at the top\u00a0business schools<\/a>\u00a0can soar above $75,000 for an entire full-time MBA program. Even attending a public B-school can be costly. A few\u00a0public MBA programs charge more than $60,000 a year for both in-state and out-of-state tuition, according to data reported to in an annual survey. For prospective MBA students, here are 17 areas to explore to help pay for an MBA<\/a>.<\/p>\n<\/div>\n<\/div>\n

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Business school fellowships<\/strong><\/p>\n

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A few business schools offer generous fellowships. These awards are similar to scholarships, since they are\u00a0grant money\u00a0that doesn’t need to be repaid. For example, nearly 50% of each class at the\u00a0Kenan-Flagler Business School<\/a>\u00a0at the University of North Carolina\u2014Chapel Hill receives fellowship assistance, which in some cases covers full annual tuition, fees and a $5,000 stipend.<\/p>\n<\/div>\n

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Graduate scholarships<\/strong><\/p>\n

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“Most schools, including Bentley, offer a number of merit MBA scholarships that don’t involve a work component,” says Gordon Berridge, senior associate director of admissions at the\u00a0McCallum Graduate School of Business<\/a>\u00a0at Bentley University in Massachusetts. Berridge says\u00a0graduate scholarships<\/a>\u00a0are based on previous educational achievements,\u00a0GMAT<\/a>\u00a0or\u00a0GRE<\/a>\u00a0scores and what the student is likely to contribute to the incoming class.\u00a0NCAA athletes<\/a>\u00a0who have eligibility left \u2013 either due to a redshirt year during their undergraduate studies or the extra year awarded due to the COVID-19 pandemic \u2013 may be able to join an athletic program as a graduate transfer, allowing them to continue playing a sport while earning or working toward a master’s degree, Berridge says.<\/p>\n<\/div>\n<\/div>\n

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Graduate assistantships<\/strong><\/p>\n

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Working as a graduate assistant or teaching assistant while enrolled in an MBA program is another way to\u00a0pay for business school<\/a>. Grad assistants typically work alongside faculty or administrators in research roles or in educational or administrative activities. “These positions are generally only offered to full-time graduate students with limited work experience and are awarded for merit,” Berridge says. The average graduate assistant salary in the U.S. was $32,371 as of Dec. 27, 2023, according to Salary.com, which collects salary data from more than 25,000 companies and organizations. The salary range typically falls between $27,825 and $38,422, according to the website. At the\u00a0University of Alabama<\/a>, for example, salaries vary depending on the department and number of hours worked per week.<\/p>\n<\/div>\n<\/div>\n

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Tutoring<\/strong><\/p>\n

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Most MBA programs offer tutoring help to students, particularly those who enter without much of a\u00a0business background<\/a>. \u201cFor example, if someone came in from the\u00a0military<\/a>\u00a0and they were really struggling in their corporate finance class, they would then engage a tutor that was paid by the school and they would be tutored in that specific topic,” says Melody Jones, founder and co-president of Vantage Point MBA Consulting. These roles are often filled by second-year MBA students and pay between $20 and $30 an hour, she says. The jobs provide a way for MBA students to make money while working on a somewhat flexible schedule, experts say.<\/p>\n<\/div>\n<\/div>\n

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External scholarships<\/strong><\/p>\n

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Various scholarships based on affinity or identity are available to prospective MBA students, Jones says, citing scholarships for Native Americans and women interested in careers in science, technology, engineering and mathematics, commonly referred to as\u00a0STEM<\/a>. These\u00a0fields typically have strong potential for a high salary and continued growth.\u00a0Stanford University<\/a>\u00a0in California publishes an\u00a0annual list<\/a>\u00a0of these scholarships, which vary in requirements and award amounts. \u201cSome of the scholarships are so obscure that they might only get three or four applicants,” Jones says. “But if you\u2019re willing to do a little bit of work and jump through some hoops, whether it\u2019s writing an essay or whatever the requirements are in order to apply for the scholarship, there is money out there.”<\/p>\n<\/div>\n

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Industry scholarships<\/strong><\/p>\n

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MBA students looking at external scholarships should consider exploring niche awards such as those related to a\u00a0specific business field<\/a>, B-school experts say. “If you’re interested in taxation, research what types of scholarships are available for people looking to pursue a taxation degree,” Berridge says. For example, the Educational Foundation for Women in Accounting and Institute of Management Accountants each offer a $1,500 scholarship to a woman working toward an advanced degree in accounting.<\/p>\n<\/div>\n<\/div>\n

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Employer sponsorship<\/strong><\/p>\n

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Some companies offer an\u00a0MBA sponsorship<\/a>\u00a0to high-achieving employees, but experts say this usually involves some type of contract or obligation such as remaining at or returning to the company upon degree completion. Other forms of employer sponsorship include tuition reimbursement with a maximum allowable amount per year. Some companies cover the full tuition amount for employees, while others cover up to 50%, Jones says. Companies such as Deloitte, Capital One, Disney and State Farm help employees pay for their MBA program.<\/p>\n<\/div>\n

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Federal student loans<\/strong><\/p>\n

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Federal student loan options are available for U.S. grad students: the\u00a0federal direct unsubsidized loan<\/a>\u00a0and the\u00a0Grad PLUS loan<\/a>. The direct loan is limited to $20,500 per year while the Grad PLUS is available for the cost of attendance minus the total of all other forms of financial assistance. Typically, the interest rates on these loans are higher than the rates offered to undergraduates. To apply for these loans, students must complete the Free Application for Federal Student Aid, known as the\u00a0FAFSA<\/a>. “Ideally, a student should borrow only what they truly need,” Amanda Elliott, associate director of financial aid and student finance advising at\u00a0Colorado State University\u2014Global<\/a>, wrote in an email.<\/p>\n<\/div>\n<\/div>\n

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Private student loans<\/strong><\/p>\n

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Banks and other private lenders can provide customized options such as loans at a variable or fixed rate. These loans consider an applicant’s\u00a0credit score<\/a>\u00a0and may have lower interest rates than federal loans. Some lenders offer specialized MBA loans, including Citizens Bank and SoFi. Students who need to take out loans for their MBA program shouldn’t stress, Jones says, especially those attending a\u00a0highly ranked business school<\/a>. \u201cTo me, it\u2019s not as scary as an undergrad loan, because if you look at the\u00a0employment statistics and the salaries<\/a>\u00a0you\u2019re going to be making post-MBA, you\u2019re going to have everything paid off within five years,” she says.<\/p>\n<\/div>\n

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In-semester internship<\/strong><\/p>\n

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While some students may work on campus as a teacher’s assistant or tutor, other opportunities may be available off campus in the form of paid\u00a0internships<\/a>\u00a0at local companies. Such experiences may even lead to a full-time job upon graduation, though students looking to make money during an internship should research whether it’s a paid or\u00a0unpaid<\/a>\u00a0position, Jones says. \u201cTypically the intent of an in-semester internship is not to make money, but it\u2019s to progress your career, particularly if you\u2019re looking to pivot into a new career or gain relevant experience in preparation for a pivot,” she says. \u201cBut some of them do pay. They\u2019re typically part time. So that\u2019s another option to make some extra cash.\u201d<\/p>\n<\/div>\n<\/div>\n

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Individual retirement accounts<\/strong><\/p>\n

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According to\u00a0IRS guidelines<\/a>, those who make an early withdrawal from an individual retirement account, or IRA, for a qualified education expense are exempt from the 10% penalty. Attending a business school qualifies for this exemption. But account holders who make an early withdrawal will still face income tax on those funds. “I would generally advise against withdrawing from an IRA to pay for business school unless it’s a very last resort,” Jones says. “You will lose out on valuable time in the market, gains from which are intended to sustain you in retirement. So from a math standpoint, you’re better off taking out loans versus withdrawing from an IRA.”<\/p>\n<\/div>\n

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529 college savings funds<\/strong><\/p>\n

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While tax-advantaged\u00a0529 plans<\/a>\u00a0are typically thought of as a popular way to pay for a baccalaureate degree, you can also use these funds for\u00a0graduate school<\/a>. For example, a family can decide against tapping these funds for undergraduate expenses and save the money to cover graduate school costs. These funds can be used at any postsecondary educational institution eligible to participate in the\u00a0federal student aid<\/a>\u00a0program administered by the U.S. Department of Education, like the direct and Grad PLUS loans. Some families use money left over from undergraduate education to pay for graduate school. “It is better, however, for the family to set up a 529 plan just for graduate or professional school after the student has graduated from undergraduate school,” Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com, wrote in a\u00a0blog<\/a>.<\/p>\n<\/div>\n<\/div>\n

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Federal grants and special awards<\/strong><\/p>\n

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A few federal government programs can help a student pay for an advanced business degree overseas, such as the\u00a0Fulbright Business Grant<\/a>. For example,\u00a0Fulbright scholarship<\/a>\u00a0awards for business grad students can subsidize MBA studies in countries such as Finland, Mexico, Spain and Taiwan. Students who earn a\u00a0Rhodes scholarship<\/a>\u00a0may choose to earn an MBA at the\u00a0University of Oxford<\/a>\u00a0in the United Kingdom. Fellowships may also be available through identity-based organizations such as Reaching Out MBA, which partners with more than 70 MBA programs to provide MBA funding for LGBTQ+ applicants.<\/p>\n<\/div>\n

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Operating a side hustle<\/strong><\/p>\n

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Gig work and other\u00a0side hustles<\/a>\u00a0offer a flexible way for MBA students to make money around their class schedule and program requirements. Some examples include driving for a ride-sharing service like Uber or Lyft, delivering food through DoorDash or Uber Eats, opening a store on Etsy or renting out a house or apartment on Airbnb. Airbnb may be subject to local laws and regulations, Jones notes, but students who can manage it can make money when they’re out of town or not staying in their house or apartment. \u201cThere\u2019s a lot of travel in business school for extended periods of time,\u201d she says. \u201cIn New York City, for example, there\u2019s a lot more restrictions on (Airbnb), but in a lot of places there aren\u2019t, so that\u2019s always a good option.\u201d<\/p>\n<\/div>\n<\/div>\n

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Veterans benefits and scholarships<\/strong><\/p>\n

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The “Forever GI Bill<\/a>,” a 2017 expansion of the post-9\/11 GI Bill, allows\u00a0military members<\/a>\u00a0who serve 36 months or more to be eligible for up to 36 months of paid college credit, which can be used for graduate school. The amount depends on where a veteran goes to school, but it generally covers the full cost of tuition at in-state public schools and in some cases will cover the full cost of out-of-state schools, according to the U.S. Department of Veterans Affairs. In cases where full tuition isn’t covered, veterans may opt to use the Yellow Ribbon Program, where participating colleges and universities can contribute up to 50% of a student’s remaining expenses and the VA will match the amount. Some schools, such as UNC, offer\u00a0MBA scholarships for veterans<\/a>\u00a0that help cover expenses other than tuition and fees.<\/p>\n<\/div>\n

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Making your case to MBA financial aid officers<\/strong><\/p>\n

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An MBA hopeful who chats with a business school financial aid officer is more likely to receive a\u00a0generous grant<\/a>\u00a0than an anonymous applicant whom school officials are less familiar with, according to admissions experts. During such a talk, a prospective MBA student should emphasize his or her interest in a particular B-school, be upfront about financial constraints and explain how much a grant or scholarship would help them, experts suggest. Though it is possible to have a productive conversation of this sort via email, experts say a phone call, video conference or in-person meeting is more likely to yield results. If you received a more substantial aid package from another school that you are considering, that is worth mentioning, experts say.<\/p>\n<\/div>\n<\/div>\n

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Asking a business school for support as soon as possible<\/strong><\/p>\n

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The longer an MBA applicant waits to submit a request for financial aid, the lower his or her odds of success, since there is typically\u00a0more cash available<\/a>\u00a0at the beginning of an admissions round than at the end, admissions experts say. Some business schools have a limited pool of money to draw from that is designated for a particular application round, experts warn. For this reason, prospective MBA students should avoid procrastinating when completing the FAFSA, Elliott says. “Students should submit the FAFSA, even if they think they don’t qualify for federal assistance. Even if federal aid isn’t something a student wants, many schools still utilize the information on the FAFSA to award scholarships and grant opportunities.”<\/p>\n<\/div>\n

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Building on one-year scholarships<\/strong><\/p>\n

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Some\u00a0MBA scholarships<\/a>\u00a0for full-time students last for a single year even though full-time MBA programs typically last two years. One simple way for potential business school students to increase their pot of scholarship money is to request that a one-year scholarship automatically renew for the second year, MBA experts recommend. Current MBA students who want to boost their scholarship awards should strive for excellence in courses and extracurricular activities so that they can make this case in future years and be competitive candidates for awards that subsidize further study.<\/p>\n<\/div>\n<\/div>\n

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Learn more about applying for an MBA.<\/strong><\/p>\n

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Explore the complete\u00a0Best Business Schools<\/a>\u00a0rankings and come to your own conclusions about\u00a0whether an MBA is worth it<\/a>. For more advice on how to select a business school, follow U.S. News Education on\u00a0X<\/a>\u00a0(formerly Twitter) and\u00a0Facebook<\/a>.<\/p>\n<\/div>\n

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How to win the money you need to pay for an MBA<\/strong><\/p>\n

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  • Business school fellowships<\/li>\n
  • Graduate scholarships<\/li>\n
  • Graduate assistantships<\/li>\n
  • Tutoring<\/li>\n
  • External scholarships<\/li>\n
  • Industry scholarships<\/li>\n
  • Employer sponsorship<\/li>\n
  • Federal student loans<\/li>\n
  • Private student loans<\/li>\n
  • In-semester internship<\/li>\n
  • Individual retirement accounts<\/li>\n
  • 529 college savings funds<\/li>\n
  • Federal grants and special awards<\/li>\n
  • Operating a side hustle<\/li>\n
  • Veterans benefits and scholarships<\/li>\n
  • Making your case to MBA financial aid officers<\/li>\n
  • Asking a business school for support as soon as possible<\/li>\n
  • Building on one-year scholarships<\/li>\n<\/ul>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    MBA degrees can cost more than $60,000 a year. While earning an\u00a0MBA degree\u00a0can advance your career path and future earnings, many people find it difficult to shoulder the upfront cost. While some programs offer options that are\u00a0more affordable\u00a0and cost less than $10,000 for the entire program, tuition and fees at the top\u00a0business schools\u00a0can soar above […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[298],"tags":[],"_links":{"self":[{"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/posts\/14401"}],"collection":[{"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/comments?post=14401"}],"version-history":[{"count":2,"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/posts\/14401\/revisions"}],"predecessor-version":[{"id":14403,"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/posts\/14401\/revisions\/14403"}],"wp:attachment":[{"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/media?parent=14401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/categories?post=14401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lalrp.org\/wp-json\/wp\/v2\/tags?post=14401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}