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Plan early and diversify your funding sources

Start organizing your finances the moment you decide to apply for an MBA. This ensures you have enough time to explore all options. Consider diversifying your funding sources to reduce risks. Plus, bear in mind that limited amounts of money are often easier to obtain.

Recommended: MBA Recruitment and Salary Levels by Region 2018

Exploring funding sources

1 – Government loans

Government loans for students exist mostly in the US and in the Anglophone world, as well as in Northern Europe. In Southern European countries and former communist countries, government loans are almost inexistent.

Because competition for government loans is intense, be sure to have your paperwork ready, verified and submitted as soon as applications open. This commonly takes place in the beginning of the academic year prior to the official launch of your postgraduate course.

2 – Private sector loans

Now that the banking sector has reconfigured itself through bankruptcies and mergers and acquisitions, private student loans are once again available and affordable. Here are some tips to help you achieve the best possible deal:

1 – Consult the official website of your chosen school and ask their counsellors about loan partnerships and conditions.

2 – Visit every single commercial bank you can think of.

3 – Negotiate – always. Be mindful of:

• The amount of money you need.

• Your credit rating.

• Potential collateral.

• The amount of money the bank is willing to lend you.

• Interest rates.

• The number of years you’ll be given to repay the loan.

• The possibility of liquidating the loan completely once you have the money to do it.

• The amount of time you’ll have before you must start repaying the bank once you do get the loan.

3 – Grants

Unlike loans, that must be repaid, grants are simply awarded to students by governmental entities, foundations or corporations.

Grant applications are time-consuming and require considerable documentation. Online information is often scarce, so go to the Ministry of Education and to the embassy of the country you’re planning to study in to obtain concrete information. The time you’ll spend on these trips will be compensated by the time you’ll save avoiding the typical mistakes and lapses of grants’ applicants.

4 – Scholarships

More than half of students in the USA and almost half of students in Europe have some sort of financial aid provided by the business school they attend. The norm is that you can only apply for one scholarship, so make sure you consult MBA counsellors to select the one you’re most likely to obtain once you apply for it. Pay attention to deadlines!

5 – Corporate Funding

Finally, there’s always the possibility of getting your company to pay for your MBA. Here are some tips to help you negotiate your further education with your bosses:

1 – Do your research about the firm’s tradition of investing in employees’ education before approaching your manager.

2 – Select the right person to talk to.

3 – Present a perfect financial plan.

4 – Deliver a concrete schedule.

5 – Sell your future knowledge and skills as an advantage to the firm.

6 – Prepare a final field project or thesis related to an issue the firm is struggling with.

Recommended: How to approach your employer to finance your MBA

Remember: most MBA students don’t pay their tuition fees in full! With a bit of research and hard work, you too can reduce the financial burden of your MBA.

If you need some more information, feel free to download our ebook below!