Now that you’ve made a commitment to get your advanced business degree, the next question is likely to be “How will I finance my MBA?”
Full or Part-Time?
The first thing you must decide is whether you will attend school as a full-time or part-time student. About two thirds of business students pursue their degrees as part-time students while continuing to work full-time. Although it will take you longer to earn your degree, the costs are more manageable and the amount of money you’ll need to borrow can be significantly reduced. Another consideration is if you work for a company that offers either full or partial tuition reimbursement to its employees. Some graduate-level business programs are only available to full-time students. If you attend one of these schools, it will not be feasible for you to work full-time. You will need to consider other alternatives to finance your educational expenses.
Estimating Costs
Your most important expense is tuition and fees. A survey conducted by the National Association of Student Financial Aid Administrators using 2003-04 data estimated that the average total cost of attendance for full-time graduate-level business students was about $22,015 at public institutions and $32,936 at private institutions. For part-time programs, the mean cost was $10,572 at public institutions and $15,587 at private institutions.
Once you’ve calculated your total expenses and determined the personal resources you can make available from current income and savings, you will need to consider financing options. Financial aid is significantly different at the graduate level than it is for undergraduates. Most importantly, all graduate students are considered independent for the purpose of federal financial aid. Grant and scholarship money is limited at M.B.A. schools.
Financial Aid
To qualify for federal aid (student loans), every student is required to complete the FAFSA, either electronically or in paper form. Soon after January 1, before you plan to enroll, complete the FAFSA. Some business schools require that you complete an additional application called the Financial Aid PROFILE® form from the College Board. A few business schools may have their own aid application or may use another college data form called Need Access.
Since most business students have to borrow to pay for their education, making sure you qualify for a loan is critical. This means that your credit record must be free of default or serious delinquency.
Search for MBA programs
Feed your quest for an MBA with more information. Do a keyword search of articles and schools in our network.
