MBA programs are expensive and it would be a struggle for most of us to find the required finances, especially at a time when one is forced to stay away from regular employment in the case of full-time programs.
Thus, at the very outset of planning to enrol for the MBA, you should think about finding the necessary financing in order to limit your student loan to the minimum. However, this doesn’t mean that mere financial constraints should not affect your choice of program or school.
First of all, consider the costs involved in the shape of tuition, fees, living expenses, room, board and books and supplies.
While financing your MBA is not a “one size fit all” proposition with some students managing to cut the loan component to just $1000, others may need much more. Students at Tuck School of Business were found to cover 54-56% of those costs with personal resources beyond student loans, scholarships, grants and sponsorship.
Typically 66% of the students got financial aid in the form of scholarship, fellowship and/or educational loans, Tuck school said in a blog post.
The scholarships range from $10,000 per year to full tuition. The average Tuck scholarship is approximately $27,000 per academic year for the two-year MBA program.
So, now we have to draw up a strategy to keep our head above water in terms of finance. It would be useful to draw up a budget, track your expenses and make sure that you do not go overboard in spending.
Make a beginning by identifying discretionary and non-discretionary expenses. Since discretionary expenses are controlled by you, ways of cutting those could be found. This money could then be put into a school savings account. Set financial goals and challenge yourself over short periods of time.
You could also get a free report on your credit rating from AnnualCreditReport.com, a website jointly operated by the three major U.S. credit reporting agencies, Equifax, Experian, and TransUnion.
The site was created in order to comply with their obligations under the Fair and Accurate Credit Transactions Act (FACTA) to provide a mechanism for American consumers to receive up to three free credit reports per year. If your credit scores are good, you will be able to get private education loans on lower interest rates.
In case of any discrepancies, try to resolve them as soon as possible even if it turns out to be a lengthy process. Keep all of your debt obligations current including student loans. Most student loans can be deferred once you are enrolled as a full-time student. Don’t open any new credit cards or debt obligations and keep long-standing ones open.
Take a look at alternative financing options including employer assistance, family sources for low-interest loans and outside scholarship. Also, keep in mind that scholarships from schools vary and there is no guarantee that you would get one.
You should try to find out the total expenses by talking to current students as most school websites publish only the first academic year costs that are subject to change each year. These costs usually do not include expenses during the summer months and pre-term costs such as moving and security deposits.
Several schools offer a selection of pre-term trips, experiential learning opportunities and study abroad offerings. Expenses for these may not be included in the educational costs.
At Tuck, several funding options available for all students. The school will help you find the best combination of loans whether they are institutional, federal and/or private. Loan options for international students that do not require a co-signer are also available.
Students will be able to have one-on-one sessions to get answers to queries and information about various resources available. Application fee waivers for those facing a financial burden are granted on a case-by-case basis.